Global Payments Inc. (NYSE:GPN) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Brokerage sentiment is cautious: Global Payments has an average analyst rating of “Hold” from 27 brokerages, with 3 sell ratings, 19 hold ratings, and 5 buy ratings. The average 12-month price target is $83.75.
• Recent analyst actions mostly lowered targets: Several firms cut price objectives, including Cantor Fitzgerald to $76, BNP Paribas Exane to $60, and TD Cowen to $74, while Barclays initiated coverage with an $81 target and an “equal weight” rating.
• Q1 results topped expectations: The company reported $2.96 EPS and $2.86 billion in revenue, both ahead of analyst estimates, and its quarterly revenue rose 63.1% year over year. Global Payments also paid a $0.25 quarterly dividend, equal to a 1.4% annualized yield.

Shares of Global Payments Inc. (NYSE:GPN - Get Free Report) have received an average recommendation of "Hold" from the twenty-seven brokerages that are presently covering the firm, MarketBeat.com reports. Three equities research analysts have rated the stock with a sell recommendation, nineteen have assigned a hold recommendation and five have given a buy recommendation to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $83.75.

A number of analysts recently weighed in on the stock. Cantor Fitzgerald reduced their price objective on shares of Global Payments from $88.00 to $76.00 and set a "neutral" rating on the stock in a research report on Monday, May 11th. BNP Paribas Exane cut their target price on Global Payments from $64.00 to $60.00 and set an "underperform" rating on the stock in a research note on Friday, April 10th. Argus reduced their price target on Global Payments from $100.00 to $95.00 in a report on Friday, May 8th. Barclays began coverage on Global Payments in a research note on Wednesday. They set an "equal weight" rating and a $81.00 price target for the company. Finally, TD Cowen restated a "hold" rating and set a $74.00 price objective (down from $86.00) on shares of Global Payments in a report on Thursday, June 11th.

Global Payments Price Performance

NYSE:GPN opened at $73.15 on Thursday. The firm has a market capitalization of $20.01 billion, a price-to-earnings ratio of -35.86, a PEG ratio of 0.44 and a beta of 0.76. The company has a debt-to-equity ratio of 0.86, a current ratio of 0.79 and a quick ratio of 0.79. The business has a 50 day simple moving average of $70.05 and a 200-day simple moving average of $72.05. Global Payments has a 1 year low of $61.16 and a 1 year high of $90.64.

Global Payments (NYSE:GPN - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The business services provider reported $2.96 earnings per share for the quarter, beating the consensus estimate of $2.82 by $0.14. Global Payments had a positive return on equity of 13.11% and a negative net margin of 7.99%.The company had revenue of $2.86 billion for the quarter, compared to analyst estimates of $2.81 billion. During the same quarter in the prior year, the firm posted $2.82 EPS. Global Payments's quarterly revenue was up 63.1% compared to the same quarter last year. Global Payments has set its FY 2026 guidance at 13.800-14.000 EPS. Equities analysts forecast that Global Payments will post 13.86 EPS for the current year.

Global Payments Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.4%. The ex-dividend date was Friday, June 12th. Global Payments's dividend payout ratio (DPR) is -49.02%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Westpac Banking Corp raised its stake in shares of Global Payments by 5,795.1% during the fourth quarter. Westpac Banking Corp now owns 57,182 shares of the business services provider's stock valued at $4,426,000 after acquiring an additional 56,212 shares in the last quarter. Moore Capital Management LP grew its stake in Global Payments by 13.3% in the third quarter. Moore Capital Management LP now owns 231,200 shares of the business services provider's stock worth $19,208,000 after purchasing an additional 27,200 shares in the last quarter. Invenomic Capital Management LP grew its stake in Global Payments by 11.1% in the third quarter. Invenomic Capital Management LP now owns 681,094 shares of the business services provider's stock worth $56,585,000 after purchasing an additional 68,071 shares in the last quarter. Jain Global LLC purchased a new position in Global Payments during the 3rd quarter worth $10,656,000. Finally, LSV Asset Management increased its holdings in Global Payments by 30.8% during the 4th quarter. LSV Asset Management now owns 448,100 shares of the business services provider's stock worth $34,683,000 after purchasing an additional 105,500 shares during the period. 89.76% of the stock is currently owned by institutional investors.

About Global Payments

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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