Fidelity National Information Services (NYSE:FIS) Hits New 12-Month Low - Should You Sell?

Key Points

• FIS hit a new 52-week low of $30.50, down from its previous close of $38.99.
• Analysts have a consensus Hold rating and an average price target of $49.04, though several firms recently cut their targets.
• Quarterly results slightly beat estimates: EPS was $1.61 versus $1.60 expected, while revenue rose 27.1% year over year. FIS also announced a $0.44 quarterly dividend, equivalent to a 5.8% yield.

Fidelity National Information Services, Inc. (NYSE:FIS - Get Free Report) shares hit a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $30.50 and last traded at $30.50, with a volume of 2,888,844 shares traded. The stock had previously closed at $38.99.

Wall Street Analysts Forecast Growth

FIS has been the topic of several research reports. TD Cowen decreased their price target on shares of Fidelity National Information Services from $53.00 to $47.00 and set a "buy" rating on the stock in a research note on Friday, October 9th. Truist Financial lowered their price objective on shares of Fidelity National Information Services from $43.00 to $37.00 and set a "hold" rating for the company in a report on Friday, October 23rd. Weiss Ratings cut shares of Fidelity National Information Services from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, September 10th. The Goldman Sachs Group reduced their target price on shares of Fidelity National Information Services from $52.00 to $44.00 and set a "buy" rating on the stock in a report on Tuesday, October 13th. Finally, Keefe, Bruyette & Woods decreased their target price on shares of Fidelity National Information Services from $60.00 to $56.00 and set an "outperform" rating on the stock in a research report on Wednesday, August 5th. Eleven investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $49.04.

Fidelity National Information Services Stock Down 22.6%

The stock's fifty day moving average is $36.91 and its 200 day moving average is $43.64. The company has a current ratio of 0.53, a quick ratio of 0.53 and a debt-to-equity ratio of 0.96. The company has a market capitalization of $15.59 billion, a P/E ratio of 4.67, a price-to-earnings-growth ratio of 0.47 and a beta of 0.84.

Fidelity National Information Services (NYSE:FIS - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The information technology services provider reported $1.61 earnings per share for the quarter, beating the consensus estimate of $1.60 by $0.01. Fidelity National Information Services had a net margin of 27.64% and a return on equity of 20.95%. The business had revenue of $3.45 billion during the quarter, compared to analysts' expectations of $3.43 billion. During the same quarter in the prior year, the company posted $1.51 EPS. The firm's revenue for the quarter was up 27.1% compared to the same quarter last year. Research analysts predict that Fidelity National Information Services, Inc. will post 6.20 EPS for the current fiscal year.

Fidelity National Information Services Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 28th. Stockholders of record on Monday, December 14th will be issued a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a dividend yield of 5.8%. The ex-dividend date is Monday, December 14th. Fidelity National Information Services's dividend payout ratio is currently 27.04%.

Insider Activity

In other Fidelity National Information Services news, Director Jeffrey Goldstein bought 1,585 shares of the business's stock in a transaction that occurred on Thursday, October 15th. The shares were bought at an average cost of $36.40 per share, with a total value of $57,694.00. Following the completion of the purchase, the director directly owned 18,697 shares of the company's stock, valued at $680,570.80. This trade represents a 9.26% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.28% of the stock is owned by insiders.

Institutional Investors Weigh In On Fidelity National Information Services

Several institutional investors and hedge funds have recently bought and sold shares of FIS. BlackRock Inc. bought a new stake in Fidelity National Information Services in the 2nd quarter worth about $1,730,200,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in Fidelity National Information Services during the 2nd quarter valued at about $219,162,000. Bank of America Corp DE bought a new position in Fidelity National Information Services during the 2nd quarter valued at about $189,387,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Fidelity National Information Services by 228.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,015,663 shares of the information technology services provider's stock valued at $141,465,000 after acquiring an additional 2,098,139 shares during the last quarter. Finally, Legal & General Group Plc purchased a new stake in shares of Fidelity National Information Services during the 2nd quarter valued at about $129,815,000. Hedge funds and other institutional investors own 96.23% of the company's stock.

Fidelity National Information Services Company Profile

Fidelity National Information Services, Inc NYSE: FIS is a global financial technology company that provides software, services and technology infrastructure to banks, financial institutions, merchants and other businesses. Its solutions are designed to support transaction processing, digital banking, payments, risk management and other essential financial operations.

FIS offers core banking and digital banking platforms, card and payment processing services, fraud and financial crime prevention tools, and technologies that help financial institutions manage accounts, lending and other banking activities.

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