Global Payments (NYSE:GPN) Hits New 1-Year High - Still a Buy?

Key Points

• Global Payments shares reached a new 52-week high, trading as high as $95.76 and recently closing near $95.20. The stock is above both its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: ten analysts rate the stock a Buy, fifteen rate it a Hold and three rate it a Sell. The average price target is $90.92, below the recent share price, although targets range from $79 to $120.
• Global Payments slightly exceeded quarterly earnings expectations, reporting $3.46 in adjusted EPS on $3.16 billion in revenue, with revenue up 68.6% year over year. The company also declared a $0.25 quarterly dividend, equivalent to a 1.0% annualized yield.

Global Payments Inc. (NYSE:GPN - Get Free Report)'s share price reached a new 52-week high on Monday . The company traded as high as $95.76 and last traded at $95.1960, with a volume of 76283 shares trading hands. The stock had previously closed at $93.49.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the company. BMO Capital Markets reaffirmed a "market perform" rating and set a $83.00 price objective on shares of Global Payments in a research report on Thursday, August 6th. Robert W. Baird set a $120.00 target price on Global Payments in a research report on Thursday, August 6th. Wolfe Research upgraded Global Payments from a "peer perform" rating to an "outperform" rating and set a $110.00 target price for the company in a research note on Thursday, August 6th. TD Cowen started coverage on Global Payments in a report on Thursday, August 6th. They issued a "buy" rating for the company. Finally, Truist Financial increased their price target on shares of Global Payments from $76.00 to $79.00 and gave the company a "hold" rating in a research note on Friday, July 24th. Ten equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $90.92.

Global Payments Price Performance

The stock has a market cap of $25.32 billion, a price-to-earnings ratio of -32.03, a PEG ratio of 0.54 and a beta of 0.74. The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.82 and a current ratio of 0.82. The company has a 50-day moving average of $79.77 and a 200-day moving average of $73.87.

Global Payments (NYSE:GPN - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The business services provider reported $3.46 earnings per share for the quarter, topping the consensus estimate of $3.44 by $0.02. The firm had revenue of $3.16 billion during the quarter, compared to the consensus estimate of $3.16 billion. Global Payments had a positive return on equity of 13.80% and a negative net margin of 9.16%.The company's revenue for the quarter was up 68.6% on a year-over-year basis. During the same period last year, the company earned $3.10 earnings per share. Global Payments has set its FY 2026 guidance at 13.600-13.800 EPS. As a group, equities research analysts predict that Global Payments Inc. will post 13.66 earnings per share for the current year.

Global Payments Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 11th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Friday, September 11th. Global Payments's payout ratio is currently -33.56%.

Hedge Funds Weigh In On Global Payments

Large investors have recently modified their holdings of the business. Gtcr LLC acquired a new position in Global Payments during the first quarter worth $2,911,939,000. California State Teachers Retirement System raised its position in Global Payments by 5,860.6% in the second quarter. California State Teachers Retirement System now owns 23,828,269 shares of the business services provider's stock worth $1,728,979,000 after acquiring an additional 23,428,503 shares in the last quarter. Pzena Investment Management LLC acquired a new stake in Global Payments in the second quarter valued at $848,344,000. Glenview Capital Management LLC lifted its holdings in Global Payments by 13.8% in the second quarter. Glenview Capital Management LLC now owns 4,316,892 shares of the business services provider's stock valued at $345,524,000 after acquiring an additional 523,209 shares during the period. Finally, Norges Bank purchased a new stake in shares of Global Payments during the 4th quarter worth $276,014,000. 89.76% of the stock is owned by hedge funds and other institutional investors.

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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