ACI Worldwide (NASDAQ:ACIW) Hits New 1-Year Low - Here's Why

Key Points

• ACI Worldwide's share price reached a new 52-week low of $41.55 during trading, closing last at $41.79, with a trading volume of 12,293 shares.
• Despite recent struggles, Wall Street analysts maintain a consensus of "Buy" for ACI Worldwide, with several firms raising their price targets to $60 on positive earnings reports and a projected growth outlook.
• Insider trading activity indicates mixed sentiments, as a director sold 7,194 shares while the CEO purchased 5,000 shares, highlighting differing perspectives on the company's future performance.

ACI Worldwide, Inc. (NASDAQ:ACIW - Get Free Report)'s share price hit a new 52-week low during trading on Friday . The company traded as low as $41.55 and last traded at $41.79, with a volume of 12293 shares changing hands. The stock had previously closed at $42.56.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on ACIW shares. DA Davidson raised ACI Worldwide from a "neutral" rating to a "buy" rating and set a $60.00 target price for the company in a report on Monday, May 12th. Stephens raised ACI Worldwide from an "equal weight" rating to an "overweight" rating and set a $60.00 price target for the company in a report on Thursday, July 17th. Wall Street Zen raised ACI Worldwide from a "buy" rating to a "strong-buy" rating in a report on Thursday, May 22nd. Finally, Jefferies Financial Group cut their price target on ACI Worldwide from $68.00 to $60.00 and set a "buy" rating for the company in a report on Tuesday, May 27th. One analyst has rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, ACI Worldwide presently has a consensus rating of "Buy" and a consensus target price of $60.00.

ACI Worldwide Stock Performance

The company has a debt-to-equity ratio of 0.55, a current ratio of 1.50 and a quick ratio of 1.50. The stock has a market cap of $4.32 billion, a price-to-earnings ratio of 16.23 and a beta of 1.06. The firm has a fifty day moving average of $45.55 and a 200 day moving average of $50.01.

ACI Worldwide (NASDAQ:ACIW - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The technology company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.18. The company had revenue of $394.57 million during the quarter, compared to analyst estimates of $364.36 million. ACI Worldwide had a return on equity of 20.94% and a net margin of 16.12%. The firm's revenue for the quarter was up 24.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.10 earnings per share. As a group, sell-side analysts forecast that ACI Worldwide, Inc. will post 2 EPS for the current year.

Insider Buying and Selling

In related news, Director Mary P. Harman sold 7,194 shares of the stock in a transaction dated Tuesday, June 10th. The stock was sold at an average price of $47.48, for a total transaction of $341,571.12. Following the transaction, the director owned 34,388 shares of the company's stock, valued at approximately $1,632,742.24. This represents a 17.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Thomas W. Warsop III bought 5,000 shares of the firm's stock in a transaction that occurred on Monday, May 12th. The shares were purchased at an average cost of $48.57 per share, for a total transaction of $242,850.00. Following the purchase, the chief executive officer owned 326,922 shares in the company, valued at $15,878,601.54. This represents a 1.55% increase in their position. The disclosure for this purchase can be found here. 1.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On ACI Worldwide

A number of hedge funds have recently bought and sold shares of the stock. LPL Financial LLC boosted its stake in shares of ACI Worldwide by 13.5% in the 4th quarter. LPL Financial LLC now owns 31,132 shares of the technology company's stock valued at $1,616,000 after buying an additional 3,698 shares during the period. JPMorgan Chase & Co. boosted its stake in shares of ACI Worldwide by 109.1% in the 4th quarter. JPMorgan Chase & Co. now owns 539,572 shares of the technology company's stock valued at $28,009,000 after buying an additional 281,562 shares during the period. Norges Bank purchased a new position in shares of ACI Worldwide in the 4th quarter valued at about $75,868,000. Pictet Asset Management Holding SA boosted its stake in shares of ACI Worldwide by 23.3% in the 4th quarter. Pictet Asset Management Holding SA now owns 17,267 shares of the technology company's stock valued at $896,000 after buying an additional 3,264 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of ACI Worldwide by 18.4% in the 4th quarter. Geode Capital Management LLC now owns 2,962,449 shares of the technology company's stock valued at $154,095,000 after buying an additional 459,821 shares during the period. Institutional investors and hedge funds own 94.74% of the company's stock.

ACI Worldwide Company Profile

ACI Worldwide, Inc, a software company, develops, markets, installs, and supports a range of software products and solutions for facilitating digital payments in the United States and internationally. The company operates in three segments: Banks, Merchants, and Billers. The company offers ACI Acquiring, a solution to process credit, debit, and prepaid card transactions, deliver digital innovation, and fraud prevention; ACI Issuing, a digital payment issuing solution for new payment offering; and ACI Enterprise Payments Platform that provides payment processing and orchestration capabilities for digital payments.

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