Global Payments (NYSE:GPN) Stock Price Down 8.9% - Here's What Happened

Key Points

• Global Payments shares fell 8.9% in Thursday mid-day trading, dropping from a prior close of $100.23 to a last trade of $91.36.
• Analyst views remain mixed: the consensus rating is Hold, with an average price target of $98.76. Recent targets ranged from $103 to $137, with ratings including Neutral, Buy, and Overweight.
• The company’s latest quarter met expectations, reporting $3.58 in earnings per share and $3.18 billion in revenue; revenue rose 36.1% year over year. Global Payments also announced a quarterly dividend of $0.25 per share.

Global Payments Inc. (NYSE:GPN - Get Free Report)'s share price dropped 8.9% during mid-day trading on Thursday. The company traded as low as $98.51 and last traded at $91.3570. Approximately 974,094 shares changed hands during mid-day trading, a decline of 71% from the average session volume of 3,375,660 shares. The stock had previously closed at $100.23.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Cantor Fitzgerald raised their price objective on shares of Global Payments from $91.00 to $103.00 and gave the company a "neutral" rating in a research note on Monday. Loop Capital initiated coverage on shares of Global Payments in a research note on Thursday, September 24th. They issued a "buy" rating and a $137.00 target price on the stock. Wells Fargo & Company upped their target price on shares of Global Payments from $103.00 to $116.00 and gave the stock an "overweight" rating in a research note on Friday, November 6th. Morgan Stanley reiterated an "overweight" rating and set a $103.00 price target on shares of Global Payments in a report on Thursday, August 6th. Finally, Argus set a $110.00 price target on shares of Global Payments and gave the company a "buy" rating in a research report on Thursday, August 6th. Thirteen research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $98.76.

Global Payments Stock Performance

The business's fifty day moving average price is $87.24 and its 200-day moving average price is $77.92. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.82 and a current ratio of 0.82. The stock has a market cap of $23.69 billion, a PE ratio of -19.63, a P/E/G ratio of 0.50 and a beta of 0.83.

Global Payments (NYSE:GPN - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The business services provider reported $3.58 earnings per share for the quarter, meeting the consensus estimate of $3.58. The firm had revenue of $3.18 billion during the quarter, compared to analysts' expectations of $3.18 billion. Global Payments had a negative net margin of 11.21% and a positive return on equity of 14.43%. The firm's quarterly revenue was up 36.1% on a year-over-year basis. During the same period in the previous year, the company earned $3.26 earnings per share. As a group, equities research analysts forecast that Global Payments Inc. will post 13.66 EPS for the current fiscal year.

Global Payments Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 24th. Shareholders of record on Thursday, December 10th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Thursday, December 10th. Global Payments's payout ratio is -21.93%.

Hedge Funds Weigh In On Global Payments

Several hedge funds and other institutional investors have recently modified their holdings of the company. Gtcr LLC bought a new position in Global Payments in the first quarter valued at about $2,911,939,000. Pzena Investment Management LLC bought a new stake in shares of Global Payments during the 2nd quarter valued at about $848,344,000. Deutsche Bank AG purchased a new stake in shares of Global Payments during the 2nd quarter valued at about $138,781,000. Legal & General Group Plc purchased a new stake in shares of Global Payments during the 2nd quarter valued at about $120,036,000. Finally, Davis Asset Management L.P. bought a new position in shares of Global Payments in the 2nd quarter worth approximately $107,752,000. 89.76% of the stock is owned by institutional investors.

About Global Payments

Global Payments Inc. is a payment technology and software company that helps businesses accept and manage payments. Its services support in-person, online and mobile transactions, along with point-of-sale systems and software for business operations. The company also provides technology to financial institutions and other organizations that issue payment cards. Its services include card processing, account management and related digital tools. Global Payments serves customers across a range of industries and operates internationally, with services available in many countries.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.