Gtcr LLC Makes New Investment in Global Payments Inc. $GPN

Key Points

• Gtcr LLC made a major new investment in Global Payments, buying 43.3 million shares worth about $2.9 billion in the first quarter. The stake represented 15.82% of the company and 77% of Gtcr’s portfolio, making GPN its largest holding.
• Global Payments beat quarterly expectations, reporting EPS of $2.96 versus the $2.82 consensus and revenue of $2.86 billion versus $2.81 billion expected. The company also said quarterly revenue rose 63.1% year over year.
• Analyst sentiment remains cautious, with several firms trimming price targets and the stock carrying a consensus rating of “Hold” and an average price target of $83.46. Global Payments also pays a quarterly dividend of $0.25, yielding about 1.2%.

Gtcr LLC purchased a new stake in Global Payments Inc. (NYSE:GPN - Free Report) in the 1st quarter, according to its most recent filing with the SEC. The fund purchased 43,268,041 shares of the business services provider's stock, valued at approximately $2,911,939,000. Global Payments comprises about 77.0% of Gtcr LLC's portfolio, making the stock its largest position. Gtcr LLC owned 15.82% of Global Payments at the end of the most recent reporting period.

A number of other large investors also recently made changes to their positions in the business. BI Asset Management Fondsmaeglerselskab A S grew its position in shares of Global Payments by 1.6% in the fourth quarter. BI Asset Management Fondsmaeglerselskab A S now owns 10,260 shares of the business services provider's stock valued at $794,000 after purchasing an additional 163 shares during the period. Allworth Financial LP increased its stake in Global Payments by 43.2% in the third quarter. Allworth Financial LP now owns 610 shares of the business services provider's stock valued at $51,000 after purchasing an additional 184 shares during the last quarter. Van ECK Associates Corp lifted its position in Global Payments by 0.6% during the third quarter. Van ECK Associates Corp now owns 30,262 shares of the business services provider's stock worth $2,514,000 after buying an additional 187 shares during the period. New Mexico Educational Retirement Board lifted its position in Global Payments by 1.8% during the fourth quarter. New Mexico Educational Retirement Board now owns 11,248 shares of the business services provider's stock worth $871,000 after buying an additional 200 shares during the period. Finally, Dempze Nancy E boosted its stake in Global Payments by 1.5% in the 4th quarter. Dempze Nancy E now owns 13,500 shares of the business services provider's stock worth $1,045,000 after buying an additional 200 shares during the last quarter. Hedge funds and other institutional investors own 89.76% of the company's stock.

Global Payments Price Performance

GPN stock opened at $80.97 on Friday. The company has a market cap of $22.15 billion, a PE ratio of -39.69, a price-to-earnings-growth ratio of 0.46 and a beta of 0.76. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 0.86. The stock has a 50-day moving average price of $72.29 and a two-hundred day moving average price of $72.00. Global Payments Inc. has a 12-month low of $61.16 and a 12-month high of $90.64.

Global Payments (NYSE:GPN - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The business services provider reported $2.96 EPS for the quarter, topping analysts' consensus estimates of $2.82 by $0.14. The company had revenue of $2.86 billion for the quarter, compared to the consensus estimate of $2.81 billion. Global Payments had a positive return on equity of 13.11% and a negative net margin of 7.99%.The company's quarterly revenue was up 63.1% compared to the same quarter last year. During the same period last year, the business posted $2.82 EPS. Global Payments has set its FY 2026 guidance at 13.800-14.000 EPS. As a group, research analysts predict that Global Payments Inc. will post 13.82 EPS for the current year.

Global Payments Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, June 12th were issued a $0.25 dividend. The ex-dividend date was Friday, June 12th. This represents a $1.00 annualized dividend and a yield of 1.2%. Global Payments's dividend payout ratio (DPR) is presently -49.02%.

Wall Street Analyst Weigh In

Several analysts have commented on the company. Wall Street Zen cut Global Payments from a "buy" rating to a "hold" rating in a report on Saturday, May 30th. Keefe, Bruyette & Woods cut their price objective on shares of Global Payments from $90.00 to $76.00 and set a "market perform" rating on the stock in a report on Tuesday, April 7th. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Global Payments from $75.00 to $70.00 and set a "hold" rating on the stock in a research report on Tuesday, June 9th. Morgan Stanley started coverage on shares of Global Payments in a report on Monday, June 22nd. They issued an "equal weight" rating and a $65.00 target price for the company. Finally, Stephens set a $80.00 price target on shares of Global Payments and gave the stock an "equal weight" rating in a research report on Thursday, May 7th. Four equities research analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $83.46.

Global Payments Company Profile

Global Payments Inc NYSE: GPN is a worldwide provider of payment technology and software solutions that enables commerce for merchants, issuers and enterprises. The company develops and operates payment processing networks, point-of-sale systems and cloud-based software that facilitate electronic transactions across in-store, online and mobile channels. Its services span merchant acquiring, payment gateway services, omnichannel commerce platforms, and solutions for recurring and subscription billing.

Global Payments offers a range of products and services including integrated payment terminals and point-of-sale software, e-commerce and gateway technologies, fraud prevention and tokenization tools, and business analytics and reporting.

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