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

Key Points

• FIS gapped down to open at $44.50 from a $47.25 close and was trading around $44.35, reflecting roughly a 4% intraday decline.
• Several major analysts (TD Cowen, JPMorgan, Goldman Sachs, Susquehanna, Argus) have cut price targets, but MarketBeat's consensus remains a Moderate Buy with a $67.10 target.
• FIS beat quarterly estimates (EPS $1.36 vs. $1.28; revenue $3.30B vs. $3.28B, +30.1% YoY) and declared a $0.44 quarterly dividend (3.9% yield) despite a very high payout ratio of 241%.

Fidelity National Information Services, Inc. (NYSE:FIS - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $47.25, but opened at $44.50. Fidelity National Information Services shares last traded at $44.3510, with a volume of 1,271,603 shares trading hands.

Analyst Upgrades and Downgrades

FIS has been the topic of a number of recent analyst reports. TD Cowen cut their price objective on shares of Fidelity National Information Services from $89.00 to $78.00 and set a "buy" rating on the stock in a research note on Wednesday, February 25th. JPMorgan Chase & Co. cut their price objective on shares of Fidelity National Information Services from $80.00 to $65.00 and set an "overweight" rating on the stock in a research note on Thursday, February 12th. The Goldman Sachs Group cut their price objective on shares of Fidelity National Information Services from $70.00 to $65.00 and set a "buy" rating on the stock in a research note on Monday, April 13th. Susquehanna cut their price objective on shares of Fidelity National Information Services from $69.00 to $55.00 and set a "neutral" rating on the stock in a research note on Wednesday, February 25th. Finally, Argus cut their price objective on shares of Fidelity National Information Services from $92.00 to $65.00 and set a "buy" rating on the stock in a research note on Thursday, February 26th. Thirteen research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $67.10.

Fidelity National Information Services Trading Down 4.3%

The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 0.65. The firm's 50-day simple moving average is $48.06 and its 200 day simple moving average is $57.04. The stock has a market capitalization of $23.37 billion, a P/E ratio of 61.85, a PEG ratio of 0.45 and a beta of 0.82.

Fidelity National Information Services (NYSE:FIS - Get Free Report) last issued its quarterly earnings results on Friday, May 8th. The information technology services provider reported $1.36 EPS for the quarter, topping the consensus estimate of $1.28 by $0.08. Fidelity National Information Services had a net margin of 3.58% and a return on equity of 21.21%. The firm had revenue of $3.30 billion for the quarter, compared to analysts' expectations of $3.28 billion. During the same period in the previous year, the business earned $1.21 earnings per share. Fidelity National Information Services's revenue for the quarter was up 30.1% compared to the same quarter last year. Equities research analysts anticipate that Fidelity National Information Services, Inc. will post 6.27 EPS for the current fiscal year.

Fidelity National Information Services Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 11th will be given a $0.44 dividend. The ex-dividend date is Thursday, June 11th. This represents a $1.76 annualized dividend and a yield of 3.9%. Fidelity National Information Services's payout ratio is 241.10%.

Insider Buying and Selling

In other Fidelity National Information Services news, CEO Stephanie Ferris purchased 19,846 shares of the company's stock in a transaction on Thursday, March 5th. The shares were purchased at an average cost of $50.39 per share, for a total transaction of $1,000,039.94. Following the completion of the transaction, the chief executive officer owned 281,458 shares in the company, valued at $14,182,668.62. The trade was a 7.59% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.21% of the company's stock.

Institutional Trading of Fidelity National Information Services

Several institutional investors and hedge funds have recently bought and sold shares of FIS. Dodge & Cox raised its holdings in Fidelity National Information Services by 22.2% during the 3rd quarter. Dodge & Cox now owns 43,105,207 shares of the information technology services provider's stock worth $2,842,357,000 after buying an additional 7,830,710 shares during the period. Norges Bank acquired a new stake in Fidelity National Information Services during the 4th quarter worth about $495,956,000. Balyasny Asset Management L.P. raised its holdings in Fidelity National Information Services by 585.9% during the 3rd quarter. Balyasny Asset Management L.P. now owns 2,365,322 shares of the information technology services provider's stock worth $155,969,000 after buying an additional 2,852,118 shares during the period. Pinebridge Investments LLC acquired a new stake in Fidelity National Information Services during the 4th quarter worth about $114,799,000. Finally, TOMS Capital Investment Management LP acquired a new stake in Fidelity National Information Services during the 4th quarter worth about $110,589,000. Institutional investors and hedge funds own 96.23% of the company's stock.

Fidelity National Information Services Company Profile

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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