Shift4 Payments (NYSE:FOUR) Stock Price Down 4.2% on Analyst Downgrade

Key Points

• Shift4 Payments shares fell 4.2% to about $44.29 after Truist Financial cut its price target from $50 to $49 while maintaining a Hold rating.
• Analyst sentiment remains mixed, with 11 Buy, 11 Hold and 1 Sell rating; the consensus rating is Hold with an average price target of $60.05.
• The company recently beat quarterly EPS expectations and reported 50.9% year-over-year revenue growth, while institutional investors own 98.87% of its shares.

Shares of Shift4 Payments, Inc. (NYSE:FOUR - Get Free Report) fell 4.2% during mid-day trading on Thursday after Truist Financial lowered their price target on the stock from $50.00 to $49.00. Truist Financial currently has a hold rating on the stock. Shift4 Payments traded as low as $44.00 and last traded at $44.2940. Approximately 365,702 shares traded hands during trading, a decline of 81% from the average session volume of 1,975,229 shares. The stock had previously closed at $46.25.

Other analysts also recently issued research reports about the stock. Evercore set a $45.00 price target on shares of Shift4 Payments in a research report on Monday, May 18th. Wells Fargo & Company upgraded shares of Shift4 Payments from an "equal weight" rating to an "overweight" rating and increased their price objective for the company from $55.00 to $59.00 in a research note on Tuesday. B. Riley Financial decreased their price objective on shares of Shift4 Payments from $120.00 to $96.00 and set a "buy" rating for the company in a report on Monday. Mizuho set a $55.00 target price on shares of Shift4 Payments in a research report on Monday, August 10th. Finally, BTIG Research cut their target price on shares of Shift4 Payments from $70.00 to $60.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Eleven equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $60.05.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Norges Bank bought a new stake in shares of Shift4 Payments during the fourth quarter valued at approximately $51,635,000. University of Illinois Foundation grew its holdings in Shift4 Payments by 57.8% in the 4th quarter. University of Illinois Foundation now owns 182,848 shares of the company's stock worth $11,514,000 after buying an additional 67,000 shares in the last quarter. Fifth Third Bancorp grew its holdings in Shift4 Payments by 19,626.6% in the 1st quarter. Fifth Third Bancorp now owns 30,379 shares of the company's stock worth $1,328,000 after buying an additional 30,225 shares in the last quarter. BW Gestao de Investimentos Ltda. increased its position in Shift4 Payments by 9.0% in the 4th quarter. BW Gestao de Investimentos Ltda. now owns 689,788 shares of the company's stock valued at $43,436,000 after acquiring an additional 56,950 shares during the period. Finally, Mariner Investment Group LLC raised its stake in Shift4 Payments by 177.8% during the 4th quarter. Mariner Investment Group LLC now owns 125,000 shares of the company's stock valued at $7,871,000 after acquiring an additional 80,000 shares in the last quarter. 98.87% of the stock is currently owned by institutional investors.

Shift4 Payments Stock Down 4.2%

The company has a debt-to-equity ratio of 2.59, a quick ratio of 1.21 and a current ratio of 1.21. The firm has a 50 day simple moving average of $47.99 and a two-hundred day simple moving average of $46.75. The stock has a market cap of $3.50 billion, a P/E ratio of 73.63, a P/E/G ratio of 0.62 and a beta of 1.40.

Shift4 Payments (NYSE:FOUR - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.26 by $0.06. The company had revenue of $1.29 billion during the quarter, compared to analysts' expectations of $615.65 million. Shift4 Payments had a return on equity of 28.40% and a net margin of 2.20%.The company's revenue for the quarter was up 50.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.10 earnings per share. Shift4 Payments has set its FY 2026 guidance at 5.150-5.350 EPS. Equities research analysts predict that Shift4 Payments, Inc. will post 4.33 earnings per share for the current year.

About Shift4 Payments

Shift4 Payments is a U.S.-based provider of integrated payment processing and technology solutions, serving merchants across the hospitality, retail, e-commerce, gaming and lodging industries. The company's platform enables businesses to accept in-store, online and mobile payments through a combination of point-of-sale hardware, payment gateway services and back-office software. By centralizing transaction processing and reporting, Shift4 aims to simplify payments, enhance security and streamline operations for its merchant customers.

The company's core offerings include encrypted point-of-sale terminals, cloud-based payment gateways, and developer-friendly APIs for online and mobile checkouts.

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