Zacks Investment Research downgraded shares of Fiserv (NASDAQ:FISV) from a hold rating to a sell rating in a research report released on Thursday.
According to Zacks, “Fiserv’s core banking products and services are part of a highly competitive market. The industry is getting more competitive with the entry of several non-banking bodies. The company's policy of acquiring a large number of companies results in some integration risk. High debt may limit the company’s future expansion and worsen its risk profile. Shares of Fiserv have underperformed its industry over the past year. On the flip side, Fiserv continues to enjoy a dominant position in the financial and payments solutions business. Its diversified product portfolio helps attract a steady flow of customers. Prudent business moves in the form of acquisitions and partnerships have been growth catalysts. The company is focused on becoming a global leader in transaction-based technology solutions. It’s consistent efforts in rewarding shareholders through share repurchases is appreciable.”
Several other research analysts also recently weighed in on the company. BidaskClub upgraded Fiserv from a hold rating to a buy rating in a research note on Friday, October 19th. ValuEngine upgraded Fiserv from a sell rating to a hold rating in a research note on Wednesday, January 2nd. Goldman Sachs Group upgraded Fiserv from a neutral rating to a buy rating and upped their price target for the stock from $78.00 to $92.00 in a research note on Tuesday, December 11th. Robert W. Baird upped their price target on Fiserv from $82.00 to $85.00 and gave the stock an outperform rating in a research note on Monday, September 24th. Finally, Argus set a $90.00 price target on Fiserv and gave the stock a buy rating in a research note on Wednesday, September 19th. Two research analysts have rated the stock with a sell rating, nine have given a hold rating, seven have given a buy rating and one has issued a strong buy rating to the stock. The company currently has a consensus rating of Hold and an average target price of $81.33.
Fiserv (NASDAQ:FISV) last announced its quarterly earnings data on Wednesday, October 31st. The business services provider reported $0.75 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.77 by ($0.02). The company had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.44 billion. Fiserv had a net margin of 25.00% and a return on equity of 44.31%. The company’s revenue was up .9% compared to the same quarter last year. During the same quarter last year, the firm posted $1.27 earnings per share. On average, sell-side analysts expect that Fiserv will post 3.13 earnings per share for the current year.
In other news, insider Jeffery W. Yabuki sold 50,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 19th. The stock was sold at an average price of $73.98, for a total transaction of $3,699,000.00. Following the sale, the insider now directly owns 320,014 shares of the company’s stock, valued at approximately $23,674,635.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold a total of 150,000 shares of company stock valued at $11,492,000 over the last 90 days. 1.70% of the stock is currently owned by corporate insiders.
Institutional investors and hedge funds have recently modified their holdings of the company. First Hawaiian Bank raised its holdings in Fiserv by 31.9% during the 4th quarter. First Hawaiian Bank now owns 1,414 shares of the business services provider’s stock valued at $104,000 after buying an additional 342 shares during the period. Bank of Stockton raised its holdings in Fiserv by 4.5% during the 3rd quarter. Bank of Stockton now owns 15,268 shares of the business services provider’s stock valued at $1,257,000 after buying an additional 655 shares during the period. Arrow Financial Corp raised its holdings in Fiserv by 15.3% during the 3rd quarter. Arrow Financial Corp now owns 4,935 shares of the business services provider’s stock valued at $407,000 after buying an additional 655 shares during the period. Oppenheimer Asset Management Inc. raised its holdings in Fiserv by 0.9% during the 3rd quarter. Oppenheimer Asset Management Inc. now owns 74,606 shares of the business services provider’s stock valued at $6,146,000 after buying an additional 702 shares during the period. Finally, WEALTHFRONT Corp raised its holdings in Fiserv by 4.5% during the 3rd quarter. WEALTHFRONT Corp now owns 16,455 shares of the business services provider’s stock valued at $1,356,000 after buying an additional 712 shares during the period. 87.48% of the stock is currently owned by institutional investors and hedge funds.
Fiserv, Inc, together with its subsidiaries, provides financial services technology worldwide. The company's Payments and Industry Products segment provides electronic bill payment and presentment services; mobile banking software and services; account-to-account transfers; person-to-person payment services; debit and credit card processing and services; payments infrastructure services; and other electronic payments software and services.
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