Shift4 Payments (NYSE:FOUR) Trading Down 6.5% - Should You Sell?

Key Points

• Shift4 Payments shares fell 6.5% to about $42.97 in mid-day trading, with volume approximately 95% below the average session volume.
• Analyst sentiment is mixed: 11 analysts rate the stock Buy, 11 Hold and one Sell, resulting in a consensus Hold rating and an average price target of $60.24.
• The company exceeded quarterly earnings expectations, reporting $1.32 EPS versus the $1.26 consensus and $1.29 billion in revenue, up 50.9% year over year; however, its net margin was only 2.20% and debt-to-equity stood at 2.59.

Shares of Shift4 Payments, Inc. (NYSE:FOUR - Get Free Report) traded down 6.5% during mid-day trading on Tuesday . The stock traded as low as $42.80 and last traded at $42.9690. 99,492 shares were traded during trading, a decline of 95% from the average session volume of 1,970,446 shares. The stock had previously closed at $45.94.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on FOUR shares. Evercore set a $45.00 price target on Shift4 Payments in a research note on Monday, May 18th. The Goldman Sachs Group set a $48.00 price target on Shift4 Payments in a research report on Friday, August 7th. B. Riley Financial dropped their price objective on Shift4 Payments from $120.00 to $96.00 and set a "buy" rating on the stock in a report on Monday, August 24th. Zacks Research upgraded Shift4 Payments from a "strong sell" rating to a "hold" rating in a research report on Monday, June 1st. Finally, Royal Bank Of Canada upped their target price on Shift4 Payments from $63.00 to $67.00 and gave the stock an "outperform" rating in a research note on Monday, August 31st. Eleven research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Shift4 Payments currently has a consensus rating of "Hold" and an average price target of $60.24.

Shift4 Payments Stock Performance

The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 2.59. The firm's 50-day moving average is $48.22 and its two-hundred day moving average is $46.00. The stock has a market cap of $3.32 billion, a price-to-earnings ratio of 70.08, a P/E/G ratio of 0.59 and a beta of 1.38.

Shift4 Payments (NYSE:FOUR - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $1.32 earnings per share for the quarter, beating analysts' consensus estimates of $1.26 by $0.06. Shift4 Payments had a net margin of 2.20% and a return on equity of 28.40%. The firm had revenue of $1.29 billion for the quarter, compared to analyst estimates of $615.65 million. During the same period last year, the company posted $1.10 EPS. Shift4 Payments's quarterly revenue was up 50.9% compared to the same quarter last year. Shift4 Payments has set its FY 2026 guidance at 5.150-5.350 EPS. As a group, sell-side analysts expect that Shift4 Payments, Inc. will post 4.33 earnings per share for the current year.

Institutional Trading of Shift4 Payments

A number of institutional investors have recently made changes to their positions in the company. Versant Capital Management Inc acquired a new position in Shift4 Payments in the 2nd quarter valued at $34,000. Advisors Asset Management Inc. grew its holdings in shares of Shift4 Payments by 100.0% during the first quarter. Advisors Asset Management Inc. now owns 434 shares of the company's stock worth $35,000 after buying an additional 217 shares in the last quarter. Empowered Funds LLC purchased a new stake in shares of Shift4 Payments during the fourth quarter worth $43,000. Vestcor Inc acquired a new stake in shares of Shift4 Payments in the third quarter valued at about $45,000. Finally, Summer Road LLC acquired a new stake in shares of Shift4 Payments in the fourth quarter valued at about $47,000. 98.87% of the stock is owned by institutional investors and hedge funds.

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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