Shift4 Payments (NYSE:FOUR) Trading Up 6.7% - Still a Buy?

Key Points

• Shift4 Payments shares rose 6.7% to about $43.82, although trading volume was 79% below the average daily level.
• Analyst sentiment is mixed: 11 analysts rate the stock a Buy, 11 a Hold and one a Sell, producing a consensus Hold rating and an average price target of $60.24.
• The company exceeded quarterly EPS expectations, reporting $1.32 versus the $1.26 estimate, while revenue increased 50.9% year over year. Institutional investors own 98.87% of the stock, with several major holders recently increasing their stakes.

Shift4 Payments, Inc. (NYSE:FOUR - Get Free Report) shares were up 6.7% during mid-day trading on Wednesday . The company traded as high as $44.10 and last traded at $43.8190. Approximately 422,301 shares were traded during trading, a decline of 79% from the average daily volume of 1,974,296 shares. The stock had previously closed at $41.08.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on FOUR. Truist Financial reduced their target price on Shift4 Payments from $50.00 to $49.00 and set a "hold" rating for the company in a report on Thursday, August 27th. DA Davidson lowered their price target on shares of Shift4 Payments from $74.00 to $68.00 and set a "buy" rating on the stock in a report on Monday, August 10th. BMO Capital Markets set a $46.00 price objective on shares of Shift4 Payments in a research report on Friday, August 7th. Royal Bank Of Canada boosted their price objective on shares of Shift4 Payments from $63.00 to $67.00 and gave the company an "outperform" rating in a research note on Monday. Finally, The Goldman Sachs Group set a $48.00 target price on shares of Shift4 Payments in a report on Friday, August 7th. Eleven investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Shift4 Payments presently has a consensus rating of "Hold" and an average price target of $60.24.

Shift4 Payments Stock Performance

The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 2.59. The company's 50-day moving average is $48.29 and its two-hundred day moving average is $46.29. The company has a market capitalization of $3.47 billion, a P/E ratio of 73.23, a PEG ratio of 0.55 and a beta of 1.38.

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

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new position in shares of Shift4 Payments during the 4th quarter valued at about $51,635,000. University of Illinois Foundation boosted its stake in Shift4 Payments by 57.8% in the fourth 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 boosted its stake in Shift4 Payments by 19,626.6% in the first 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. grew its position in Shift4 Payments by 9.0% during the fourth 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 last quarter. Finally, Mariner Investment Group LLC raised its stake in shares of Shift4 Payments by 177.8% during the fourth quarter. Mariner Investment Group LLC now owns 125,000 shares of the company's stock worth $7,871,000 after acquiring an additional 80,000 shares in the last quarter. Institutional investors own 98.87% of the company's stock.

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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