Fidelity National Information Services (NYSE:FIS) Shares Gap Down - Here's Why

Key Points

• Shares gapped down — FIS closed at $66.84 and opened at $64.67, trading around $65.12 on a ~432,600-share volume and roughly 1% intraday decline.
• Analyst sentiment is positive with a consensus rating of "Moderate Buy" and an average price target of $84.44 (11 Buys, 7 Holds, 1 Sell), though several brokers have trimmed targets while keeping overweight/hold stances.
• Operationally FIS beat quarterly expectations (EPS $1.51 vs $1.48, revenue $2.72B vs $2.65B), guided FY2025 EPS to 5.740–5.780, and pays a $0.40 quarterly dividend (2.4% yield) despite an unusually high payout ratio of 592.59%.

Shares of Fidelity National Information Services, Inc. (NYSE:FIS - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $66.84, but opened at $64.67. Fidelity National Information Services shares last traded at $65.1180, with a volume of 432,599 shares traded.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on FIS. Wells Fargo & Company started coverage on Fidelity National Information Services in a research note on Wednesday, October 22nd. They set an "overweight" rating and a $81.00 price target on the stock. Citigroup upgraded shares of Fidelity National Information Services to a "hold" rating in a research note on Thursday, October 23rd. JPMorgan Chase & Co. lowered their price objective on shares of Fidelity National Information Services from $85.00 to $80.00 and set an "overweight" rating for the company in a research note on Thursday, November 6th. KeyCorp reissued a "hold" rating on shares of Fidelity National Information Services in a research report on Wednesday, October 22nd. Finally, Truist Financial lowered their price target on Fidelity National Information Services from $72.00 to $70.00 and set a "hold" rating for the company in a research report on Wednesday, November 19th. Eleven equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Fidelity National Information Services has a consensus rating of "Moderate Buy" and a consensus price target of $84.44.

Fidelity National Information Services Stock Down 1.0%

The stock has a market cap of $34.28 billion, a PE ratio of 245.16 and a beta of 0.93. The business has a 50 day moving average price of $65.74 and a 200 day moving average price of $69.57. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.64.

Fidelity National Information Services (NYSE:FIS - Get Free Report) last announced its quarterly earnings results on Wednesday, November 5th. The information technology services provider reported $1.51 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.48 by $0.03. The company had revenue of $2.72 billion during the quarter, compared to the consensus estimate of $2.65 billion. Fidelity National Information Services had a return on equity of 19.76% and a net margin of 1.45%.Fidelity National Information Services's revenue for the quarter was up 5.7% on a year-over-year basis. During the same period in the previous year, the company posted $1.40 earnings per share. Fidelity National Information Services has set its FY 2025 guidance at 5.740-5.780 EPS. Equities research analysts expect that Fidelity National Information Services, Inc. will post 5.74 EPS for the current fiscal year.

Fidelity National Information Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 23rd. Shareholders of record on Tuesday, December 9th were given a $0.40 dividend. The ex-dividend date was Tuesday, December 9th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.4%. Fidelity National Information Services's dividend payout ratio is 592.59%.

Insider Buying and Selling at Fidelity National Information Services

In other Fidelity National Information Services news, Director Jeffrey A. Goldstein purchased 889 shares of Fidelity National Information Services stock in a transaction that occurred on Wednesday, October 15th. The stock was bought at an average price of $67.66 per share, with a total value of $60,149.74. Following the acquisition, the director owned 13,588 shares of the company's stock, valued at $919,364.08. This trade represents a 7.00% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.21% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Fidelity National Information Services

Institutional investors have recently added to or reduced their stakes in the stock. NewSquare Capital LLC lifted its holdings in Fidelity National Information Services by 115.1% during the second quarter. NewSquare Capital LLC now owns 357 shares of the information technology services provider's stock valued at $29,000 after purchasing an additional 191 shares in the last quarter. Raiffeisen Bank International AG acquired a new stake in Fidelity National Information Services in the 3rd quarter worth about $29,000. LRI Investments LLC increased its stake in Fidelity National Information Services by 613.1% during the 3rd quarter. LRI Investments LLC now owns 435 shares of the information technology services provider's stock worth $29,000 after buying an additional 374 shares in the last quarter. Root Financial Partners LLC acquired a new position in shares of Fidelity National Information Services during the third quarter valued at approximately $29,000. Finally, GoalVest Advisory LLC purchased a new position in shares of Fidelity National Information Services in the fourth quarter valued at approximately $33,000. Institutional investors and hedge funds own 96.23% of the company's stock.

About Fidelity National Information Services

Fidelity National Information Services NYSE: FIS is a global provider of financial technology solutions and services for banks, capital markets firms, merchants and corporations. The company develops and delivers software, processing, and outsourcing services that support core banking, payments and merchant acquiring, wealth and retirement platforms, risk and compliance, and trading and capital markets operations. Its offerings include cloud-based and on-premises core banking systems, card processing and gateway services, e-commerce and point-of-sale payment solutions, and a range of back-office and advisory services designed to automate and modernize financial operations.

FIS serves a broad international client base across North America, Europe, Latin America, and the Asia-Pacific region through a combination of direct clients and partner channels.

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