Global Payments (NYSE:GPN) Shares Gap Up Following Earnings Beat

Key Points

• Global Payments Inc. shares gapped up to $87.70 after reporting $3.10 earnings per share, exceeding analyst expectations by $0.04.
• Despite the strong earnings, analysts have mixed ratings on the stock, with one sell rating, seventeen hold ratings, and twelve buy ratings impacting its average target of $111.65.
• Institutional investors own approximately 89.76% of Global Payments, with several firms increasing their stakes significantly, indicating strong institutional confidence.

Shares of Global Payments Inc. (NYSE:GPN - Get Free Report) gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $78.41, but opened at $87.70. Global Payments shares last traded at $82.37, with a volume of 856,553 shares trading hands.

The business services provider reported $3.10 earnings per share for the quarter, beating the consensus estimate of $3.06 by $0.04. The business had revenue of $2.36 billion during the quarter, compared to analysts' expectations of $2.36 billion. Global Payments had a return on equity of 12.47% and a net margin of 15.07%. The firm's revenue for the quarter was up 1.6% compared to the same quarter last year. During the same quarter last year, the business posted $2.93 EPS.

Global Payments Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 12th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Friday, September 12th. Global Payments's dividend payout ratio is currently 16.13%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on GPN. B. Riley reiterated a "buy" rating on shares of Global Payments in a research note on Wednesday, July 16th. JPMorgan Chase & Co. lifted their price target on Global Payments from $85.00 to $95.00 and gave the stock a "neutral" rating in a report on Thursday. Barclays dropped their target price on Global Payments from $125.00 to $110.00 and set an "overweight" rating for the company in a research report on Tuesday, April 15th. TD Cowen upgraded Global Payments from a "hold" rating to a "buy" rating and set a $84.00 price objective on the stock in a report on Monday, July 14th. Finally, Wells Fargo & Company lowered their price target on Global Payments from $105.00 to $77.00 and set an "equal weight" rating on the stock in a report on Monday, April 21st. One analyst has rated the stock with a sell rating, eighteen have given a hold rating and twelve have assigned a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $112.21.

Hedge Funds Weigh In On Global Payments

Hedge funds and other institutional investors have recently made changes to their positions in the company. Bridgewater Associates LP grew its position in Global Payments by 88.6% during the 4th quarter. Bridgewater Associates LP now owns 892,958 shares of the business services provider's stock worth $100,065,000 after acquiring an additional 419,443 shares during the last quarter. Susquehanna Fundamental Investments LLC bought a new stake in shares of Global Payments during the fourth quarter worth about $1,708,000. Golden State Wealth Management LLC increased its stake in shares of Global Payments by 4,866.7% in the first quarter. Golden State Wealth Management LLC now owns 447 shares of the business services provider's stock valued at $44,000 after buying an additional 438 shares during the period. Tradewinds LLC. bought a new position in Global Payments in the 1st quarter valued at approximately $685,000. Finally, Argyle Capital Management LLC boosted its position in Global Payments by 114.4% during the 1st quarter. Argyle Capital Management LLC now owns 18,305 shares of the business services provider's stock worth $1,792,000 after buying an additional 9,768 shares during the period. 89.76% of the stock is currently owned by institutional investors and hedge funds.

Global Payments Stock Performance

The company's 50-day simple moving average is $79.69 and its 200-day simple moving average is $87.97. The stock has a market capitalization of $20.09 billion, a price-to-earnings ratio of 14.39, a PEG ratio of 0.82 and a beta of 0.93. The company has a current ratio of 0.95, a quick ratio of 0.94 and a debt-to-equity ratio of 0.61.

Global Payments Company Profile

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.