Equifax (NYSE:EFX) Shares Gap Down - Here's Why

Key Points

• Equifax shares gapped down after a strong run-up, opening at $158.94 versus a prior close of $180.08 and last trading around $168.68.
• The company beat Q2 earnings expectations with EPS of $2.25 on revenue of $1.70 billion, up 10.6% year over year, and said revenue growth was about 11% for the quarter.
• Despite the beat, full-year and Q3 guidance came in slightly below Wall Street estimates, which appears to be weighing on the stock; Equifax also raised its AI-driven cost-cutting target to $150 million and announced plans to acquire Círculo de Crédito.

Equifax, Inc. (NYSE:EFX - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $180.08, but opened at $158.94. Equifax shares last traded at $168.6820, with a volume of 1,606,383 shares changing hands.

Trending Headlines about Equifax

Here are the key news stories impacting Equifax this week:

• Positive Sentiment: Equifax beat Q2 EPS estimates, reporting $2.25 per share versus $2.21 expected, while revenue of $1.70 billion matched consensus and rose 10.6% year over year. Article Title
• Positive Sentiment: The company highlighted strong second-quarter revenue growth of 11% and said it signed an agreement to acquire Círculo de Crédito, which could support longer-term growth. Article Title
• Neutral Sentiment: Equifax doubled its AI-driven cost reduction target to $150 million and returned $366 million to shareholders, reinforcing capital discipline and margin improvement efforts. Article Title
• Negative Sentiment: Despite the Q2 beat, Equifax’s FY 2026 guidance came in a bit light versus Wall Street expectations, with EPS guidance of $8.39-$8.69 versus $8.60 expected and revenue guidance of $6.7 billion-$6.8 billion versus $6.8 billion expected. Article Title
• Negative Sentiment: Third-quarter EPS guidance of $2.15-$2.25 also trailed consensus of $2.27, suggesting near-term earnings growth may be a little softer than investors wanted. Article Title

Analyst Ratings Changes

EFX has been the topic of several recent research reports. Morgan Stanley reduced their target price on shares of Equifax from $244.00 to $243.00 and set an "overweight" rating on the stock in a report on Wednesday, April 22nd. Weiss Ratings raised shares of Equifax from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday. Mizuho cut their price target on shares of Equifax from $222.00 to $210.00 and set an "outperform" rating on the stock in a report on Thursday, July 2nd. Citigroup reduced their price objective on shares of Equifax from $256.00 to $238.00 and set a "buy" rating on the stock in a research note on Wednesday, April 22nd. Finally, BNP Paribas Exane decreased their price objective on Equifax from $195.00 to $185.00 and set a "neutral" rating for the company in a report on Thursday, June 18th. Thirteen equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $223.39.

Equifax Stock Performance

The stock has a 50 day moving average of $165.20 and a 200 day moving average of $183.71. The company has a market capitalization of $20.16 billion, a price-to-earnings ratio of 29.69, a price-to-earnings-growth ratio of 1.34 and a beta of 1.32. The company has a quick ratio of 0.61, a current ratio of 0.61 and a debt-to-equity ratio of 0.89.

Equifax (NYSE:EFX - Get Free Report) last released its earnings results on Tuesday, July 21st. The credit services provider reported $2.25 earnings per share for the quarter, beating analysts' consensus estimates of $2.21 by $0.04. Equifax had a net margin of 11.12% and a return on equity of 20.41%. The business had revenue of $1.70 billion during the quarter, compared to the consensus estimate of $1.70 billion. During the same quarter in the prior year, the firm posted $2.00 EPS. The company's revenue for the quarter was up 10.6% compared to the same quarter last year. Equifax has set its Q3 2026 guidance at 2.150-2.250 EPS and its FY 2026 guidance at 8.390-8.690 EPS. As a group, analysts predict that Equifax, Inc. will post 8.56 EPS for the current year.

Equifax Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, May 22nd were given a dividend of $0.56 per share. The ex-dividend date was Friday, May 22nd. This represents a $2.24 annualized dividend and a dividend yield of 1.3%. Equifax's dividend payout ratio is 39.44%.

Insiders Place Their Bets

In related news, CEO Mark W. Begor sold 37,791 shares of Equifax stock in a transaction on Friday, April 24th. The shares were sold at an average price of $172.40, for a total transaction of $6,515,168.40. Following the completion of the transaction, the chief executive officer owned 271,730 shares of the company's stock, valued at $46,846,252. This trade represents a 12.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Chad M. Borton sold 2,455 shares of the business's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $173.89, for a total transaction of $426,899.95. Following the completion of the transaction, the executive vice president owned 29,518 shares in the company, valued at approximately $5,132,885.02. The trade was a 7.68% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Equifax

Several institutional investors and hedge funds have recently made changes to their positions in the business. Cullen Frost Bankers Inc. bought a new stake in Equifax in the fourth quarter worth approximately $25,000. Ameriflex Group Inc. boosted its holdings in shares of Equifax by 612.5% during the 4th quarter. Ameriflex Group Inc. now owns 114 shares of the credit services provider's stock worth $25,000 after buying an additional 98 shares in the last quarter. Kemnay Advisory Services Inc. acquired a new stake in shares of Equifax during the 4th quarter worth approximately $26,000. Reflection Asset Management acquired a new stake in shares of Equifax during the 4th quarter worth approximately $26,000. Finally, Caitong International Asset Management Co. Ltd bought a new stake in shares of Equifax in the 3rd quarter valued at $34,000. Institutional investors own 96.20% of the company's stock.

About Equifax

Equifax Inc NYSE: EFX is a global data, analytics and technology company that specializes in consumer and commercial credit reporting, decisioning tools and identity solutions. Headquartered in Atlanta, Georgia, Equifax is one of the three major consumer credit reporting agencies in the United States and provides credit information and related services to lenders, employers, governments and consumers worldwide.

The company's offerings include consumer credit reports and scores, credit monitoring and identity protection services, and a range of business-oriented products for risk management, fraud detection and compliance.

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