Zacks Investment Research lowered shares of Global Payments (NYSE:GPN) from a hold rating to a sell rating in a report issued on Wednesday.
According to Zacks, “Global Payments’ shares have declined in a year's time, comparing unfavorably against its industry’s growth in the same timeframe. The company suffers from a rising debt level. Moreover, its earnings are also expected to face currency volatility, owing to its worldwide presence. However, strategic investments in future growth-driving projects and successful refinancing of credit facilities bode well in the long haul. Consistent top-line growth and its accretive acquisitions are impressive as well. Investment in technology has enabled it to stay ahead of the rapidly changing payments industry.”
A number of other equities analysts have also weighed in on GPN. Deutsche Bank boosted their price objective on Global Payments to $140.00 and gave the stock a buy rating in a research note on Friday, September 14th. BMO Capital Markets initiated coverage on Global Payments in a research note on Wednesday, September 26th. They set an outperform rating and a $139.00 price objective on the stock. Robert W. Baird boosted their price objective on Global Payments from $136.00 to $142.00 and gave the stock an outperform rating in a research note on Wednesday, October 17th. KeyCorp upped their price target on Global Payments from $130.00 to $135.00 and gave the company an overweight rating in a research note on Wednesday, October 31st. Finally, Cantor Fitzgerald upped their price target on Global Payments from $136.00 to $143.00 and gave the company an overweight rating in a research note on Wednesday, October 31st. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and sixteen have issued a buy rating to the company’s stock. The stock currently has an average rating of Buy and an average target price of $125.70.
Shares of GPN traded up $0.54 during trading hours on Wednesday, hitting $110.79. 1,334,461 shares of the stock were exchanged, compared to its average volume of 1,415,050. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.03 and a current ratio of 1.03. Global Payments has a 12-month low of $94.81 and a 12-month high of $129.25. The stock has a market capitalization of $17.28 billion, a price-to-earnings ratio of 27.63, a PEG ratio of 1.07 and a beta of 1.14.
Global Payments (NYSE:GPN) last issued its quarterly earnings results on Tuesday, October 30th. The business services provider reported $1.44 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.39 by $0.05. Global Payments had a return on equity of 18.38% and a net margin of 17.48%. The firm had revenue of $857.70 million during the quarter, compared to analysts’ expectations of $1.02 billion. During the same period in the previous year, the business earned $1.15 earnings per share. The firm’s revenue for the quarter was down 17.4% on a year-over-year basis. On average, analysts predict that Global Payments will post 4.89 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, December 28th. Shareholders of record on Friday, December 14th were issued a dividend of $0.01 per share. The ex-dividend date was Thursday, December 13th. This represents a $0.04 annualized dividend and a yield of 0.04%. Global Payments’s dividend payout ratio (DPR) is 1.00%.
In other Global Payments news, Director Alan M. Silberstein sold 700 shares of the company’s stock in a transaction dated Wednesday, November 14th. The stock was sold at an average price of $109.66, for a total transaction of $76,762.00. Following the sale, the director now owns 42,169 shares in the company, valued at approximately $4,624,252.54. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Robert H. B. Baldwin, Jr. sold 3,000 shares of the company’s stock in a transaction dated Friday, December 14th. The stock was sold at an average price of $102.02, for a total value of $306,060.00. Following the sale, the director now owns 74,899 shares in the company, valued at approximately $7,641,195.98. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 6,825 shares of company stock worth $745,541. 0.98% of the stock is owned by company insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. TRUE Private Wealth Advisors purchased a new position in Global Payments during the 3rd quarter worth approximately $112,000. First Hawaiian Bank purchased a new position in Global Payments during the 3rd quarter worth approximately $124,000. CENTRAL TRUST Co grew its stake in Global Payments by 10.2% during the 4th quarter. CENTRAL TRUST Co now owns 1,597 shares of the business services provider’s stock worth $165,000 after buying an additional 148 shares during the last quarter. Evercore Wealth Management LLC purchased a new position in Global Payments during the 3rd quarter worth approximately $201,000. Finally, Equitable Trust Co. purchased a new position in Global Payments during the 3rd quarter worth approximately $204,000. Institutional investors and hedge funds own 97.29% of the company’s stock.
Global Payments Company Profile
Global Payments Inc provides payment technology and software solutions for credit cards, debit cards, electronic payments, and check-related services. It offers authorization services, settlement and funding services, customer support and help-desk functions, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and statements, online reporting, industry compliance, and payment card industry security services.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Global Payments Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Global Payments and related companies with MarketBeat.com's FREE daily email newsletter.