Traders Purchase Large Volume of Put Options on Global Payments (NYSE:GPN)

Key Points

• Unusual options activity: Traders purchased 8,347 put options on Global Payments, 233% above its typical daily volume of 2,507 contracts, signaling increased bearish or hedging interest.
• Analyst sentiment remains mixed: The stock has an average “Hold” rating and a $96.17 price target, although several analysts recently issued “Buy” or “Outperform” ratings with targets as high as $137.
• Shares and fundamentals: GPN fell 0.7% to $84.18, while its latest quarterly results slightly exceeded earnings expectations and revenue rose 68.6% year over year. The company also pays a quarterly dividend of $0.25 per share, yielding about 1.2%.

Global Payments Inc. (NYSE:GPN - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Stock traders bought 8,347 put options on the stock. This is an increase of 233% compared to the typical daily volume of 2,507 put options.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Oppenheimer upgraded shares of Global Payments from a "market perform" rating to an "outperform" rating and set a $115.00 price target on the stock in a research report on Thursday, October 8th. Keefe, Bruyette & Woods boosted their price objective on shares of Global Payments from $76.00 to $95.00 and gave the company a "market perform" rating in a research report on Thursday, August 6th. HC Wainwright initiated coverage on Global Payments in a research note on Thursday, August 6th. They set a "buy" rating for the company. Wolfe Research restated an "outperform" rating and set a $125.00 target price (up from $110.00) on shares of Global Payments in a research note on Tuesday, August 25th. Finally, Loop Capital initiated coverage on Global Payments in a report on Thursday, September 24th. They issued a "buy" rating and a $137.00 target price on the stock. Thirteen analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Global Payments presently has an average rating of "Hold" and an average target price of $96.17.

Global Payments Trading Down 0.7%

Shares of GPN stock traded down $0.64 during mid-day trading on Wednesday, reaching $84.18. 221,623 shares of the stock traded hands, compared to its average volume of 3,328,224. The company has a market cap of $22.28 billion, a price-to-earnings ratio of -28.24, a price-to-earnings-growth ratio of 0.41 and a beta of 0.80. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 0.90. The stock's fifty day simple moving average is $87.37 and its two-hundred day simple moving average is $77.97. Global Payments has a 1-year low of $61.16 and a 1-year high of $95.88.

Global Payments (NYSE:GPN - Get Free Report) last issued its quarterly earnings data 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 company had revenue of $3.16 billion for the quarter, compared to analysts' expectations of $3.16 billion. Global Payments had a negative net margin of 9.16% and a positive return on equity of 13.80%. Global Payments's revenue for the quarter was up 68.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.10 earnings per share. Global Payments has set its FY 2026 guidance at 13.600-13.800 EPS. On average, research analysts anticipate that Global Payments will post 13.64 EPS for the current fiscal year.

Global Payments Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 11th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend was Friday, September 11th. Global Payments's dividend payout ratio is presently -33.56%.

Institutional Trading of Global Payments

Several hedge funds have recently bought and sold shares of GPN. Western Wealth Management LLC purchased a new stake in Global Payments during the 1st quarter valued at about $34,000. Nvwm LLC purchased a new position in Global Payments in the third quarter worth about $41,000. Root Financial Partners LLC lifted its stake in shares of Global Payments by 209.8% in the first quarter. Root Financial Partners LLC now owns 725 shares of the business services provider's stock worth $49,000 after buying an additional 491 shares in the last quarter. Geneos Wealth Management Inc. lifted its stake in shares of Global Payments by 48.5% in the first quarter. Geneos Wealth Management Inc. now owns 765 shares of the business services provider's stock worth $51,000 after buying an additional 250 shares in the last quarter. Finally, Fortitude Family Office LLC lifted its stake in shares of Global Payments by 365.7% in the third quarter. Fortitude Family Office LLC now owns 624 shares of the business services provider's stock worth $51,000 after buying an additional 490 shares in the last quarter. Institutional investors and hedge funds own 89.76% of the company's stock.

Global Payments Company Profile

Global Payments Inc NYSE: GPN is a financial technology and payments company that provides software and payment solutions to businesses, financial institutions and other organizations. Its services help merchants accept payments through credit cards, debit cards, digital wallets and other electronic methods across in-store, online and mobile channels.

The company offers payment processing, point-of-sale technology, commerce management software, payment security and reporting tools. Its solutions are used in industries including retail, restaurants, hospitality, healthcare, education and government.

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