Global Payments Inc. (NYSE:GPN) to Issue $0.25 Quarterly Dividend

Key Points

• Global Payments Inc. will issue a quarterly dividend of $0.25 per share, set to be paid on September 26th to investors of record as of September 12th, representing a yield of 1.2%.
• The company reported better-than-expected earnings per share of $3.10 for the last quarter, surpassing the consensus estimate by $0.04, with revenue rising by 1.6% year-over-year.
• Global Payments has a strong dividend payout ratio of 7.3%, indicating it can comfortably sustain its annual dividend of $1.00 as analysts expect it to earn $13.49 per share next year.

Global Payments Inc. (NYSE:GPN - Get Free Report) announced a quarterly dividend on Thursday, August 7th, Wall Street Journal reports. Investors of record on Friday, September 12th will be given a dividend of 0.25 per share by the business services provider on Friday, September 26th. This represents a c) dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Friday, September 12th.

Global Payments has a dividend payout ratio of 7.3% meaning its dividend is sufficiently covered by earnings. Research analysts expect Global Payments to earn $13.49 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 7.4%.

Global Payments Stock Performance

Global Payments stock traded down $3.65 on Thursday, hitting $81.89. The company's stock had a trading volume of 3,434,343 shares, compared to its average volume of 2,820,457. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.66. The company has a fifty day moving average price of $79.56 and a 200-day moving average price of $88.15. The firm has a market cap of $19.97 billion, a P/E ratio of 13.21, a price-to-earnings-growth ratio of 0.75 and a beta of 0.93. Global Payments has a one year low of $65.93 and a one year high of $120.00.

Global Payments (NYSE:GPN - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The business services provider reported $3.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.06 by $0.04. Global Payments had a return on equity of 12.33% and a net margin of 15.48%. The firm had revenue of $2.36 billion during the quarter, compared to the consensus estimate of $2.36 billion. During the same quarter in the previous year, the company posted $2.93 EPS. The business's revenue for the quarter was up 1.6% compared to the same quarter last year. On average, equities analysts anticipate that Global Payments will post 11.89 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on GPN. Cowen downgraded Global Payments from a "buy" rating to a "hold" rating in a report on Monday, April 21st. JPMorgan Chase & Co. upped their price objective on Global Payments from $85.00 to $95.00 and gave the stock a "neutral" rating in a research note on Thursday. Jefferies Financial Group downgraded shares of Global Payments from a "buy" rating to a "hold" rating and set a $75.00 target price on the stock. in a report on Friday, April 18th. Robert W. Baird cut their price target on shares of Global Payments from $145.00 to $100.00 and set an "outperform" rating for the company in a research note on Monday, April 21st. Finally, Barclays dropped their price objective on Global Payments from $125.00 to $110.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 15th. One investment analyst has rated the stock with a sell rating, eighteen have assigned a hold rating and twelve have assigned a buy rating to the company. According to MarketBeat.com, Global Payments has an average rating of "Hold" and an average target price of $112.00.

About Global Payments

Global Payments Inc provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services.

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