Fiserv (NYSE:FI) Shares Gap Up Following Earnings Beat

Shares of Fiserv, Inc. (NYSE:FI - Get Free Report) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $176.90, but opened at $181.15. Fiserv shares last traded at $179.98, with a volume of 1,040,209 shares trading hands.

The business services provider reported $2.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.08 by $0.06. Fiserv had a return on equity of 17.93% and a net margin of 15.31%. The company had revenue of $4.79 billion during the quarter, compared to analysts' expectations of $4.86 billion. During the same period last year, the firm posted $1.88 earnings per share. The business's revenue was up 5.1% on a year-over-year basis.

Fiserv declared that its board has approved a stock repurchase plan on Thursday, February 20th that permits the company to repurchase 60,000,000 outstanding shares. This repurchase authorization permits the business services provider to buy shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

FI has been the subject of a number of research reports. Citigroup dropped their target price on Fiserv from $267.00 to $240.00 and set a "buy" rating for the company in a report on Friday, April 25th. Seaport Res Ptn upgraded Fiserv from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, January 14th. Piper Sandler set a $218.00 target price on Fiserv in a research report on Friday, April 25th. Wells Fargo & Company boosted their price objective on shares of Fiserv from $240.00 to $270.00 and gave the stock an "overweight" rating in a research note on Thursday, February 6th. Finally, Barclays lowered their price objective on Fiserv from $265.00 to $230.00 and set an "overweight" rating for the company in a research report on Monday. Two analysts have rated the stock with a sell rating, one has assigned a hold rating, twenty-two have assigned a buy rating and two have given a strong buy rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $230.00.

Insider Buying and Selling

In other news, COO Guy Chiarello sold 45,000 shares of the firm's stock in a transaction dated Thursday, February 20th. The shares were sold at an average price of $235.55, for a total transaction of $10,599,750.00. Following the sale, the chief operating officer now owns 227,711 shares of the company's stock, valued at $53,637,326.05. This trade represents a 16.50 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.75% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Fiserv

Institutional investors and hedge funds have recently modified their holdings of the company. Geode Capital Management LLC raised its stake in shares of Fiserv by 1.9% in the fourth quarter. Geode Capital Management LLC now owns 11,891,207 shares of the business services provider's stock worth $2,435,280,000 after buying an additional 218,833 shares during the period. FMR LLC lifted its position in Fiserv by 22.5% during the fourth quarter. FMR LLC now owns 11,568,895 shares of the business services provider's stock valued at $2,376,482,000 after purchasing an additional 2,126,419 shares during the last quarter. Massachusetts Financial Services Co. MA raised its position in Fiserv by 16.2% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 8,030,889 shares of the business services provider's stock valued at $1,649,705,000 after purchasing an additional 1,121,597 shares during the period. Nuveen Asset Management LLC lifted its position in Fiserv by 5.2% in the fourth quarter. Nuveen Asset Management LLC now owns 6,936,554 shares of the business services provider's stock worth $1,424,907,000 after buying an additional 340,938 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of Fiserv in the fourth quarter valued at $1,406,452,000. 90.98% of the stock is currently owned by hedge funds and other institutional investors.

Fiserv Stock Performance

The firm has a 50-day moving average price of $213.93 and a two-hundred day moving average price of $211.84. The firm has a market capitalization of $103.06 billion, a P/E ratio of 34.23, a P/E/G ratio of 1.52 and a beta of 0.91. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.06 and a quick ratio of 1.07.

About Fiserv

Fiserv, Inc, together with its subsidiaries, provides payments and financial services technology services in the United States, Europe, the Middle East and Africa, Latin America, the Asia-Pacific, and internationally. It operates through Merchant Acceptance, Financial Technology, and Payments and Network segments.