Deluxe (NYSE:DLX) Cut to Buy at Wall Street Zen

Key Points

• Analysts at Wall Street Zen downgraded Deluxe (NYSE:DLX) from a "strong-buy" to a "buy" rating in a recent research report.
• Deluxe reported $0.88 EPS for the last quarter, exceeding the consensus estimate, but its quarterly revenue decreased by 3.1% compared to the previous year.
• Hedge funds and institutional investors hold 93.90% of Deluxe's stock, with several firms significantly increasing their stakes recently.

Deluxe (NYSE:DLX - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report issued on Saturday.

DLX has been the subject of several other reports. TD Securities reduced their price target on Deluxe from $33.00 to $23.00 and set a "buy" rating for the company in a report on Thursday, May 1st. Cowen reissued a "buy" rating on shares of Deluxe in a research report on Thursday.

Deluxe Stock Down 1.6%

DLX traded down $0.31 during trading on Friday, reaching $18.84. The stock had a trading volume of 585,981 shares, compared to its average volume of 385,477. The stock's 50 day moving average is $16.02 and its two-hundred day moving average is $16.32. The company has a current ratio of 0.94, a quick ratio of 0.85 and a debt-to-equity ratio of 2.24. The company has a market capitalization of $842.68 million, a price-to-earnings ratio of 14.60, a P/E/G ratio of 0.55 and a beta of 1.49. Deluxe has a one year low of $13.61 and a one year high of $24.45.

Deluxe (NYSE:DLX - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The business services provider reported $0.88 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.71 by $0.17. The business had revenue of $521.30 million during the quarter, compared to the consensus estimate of $526.93 million. Deluxe had a return on equity of 21.12% and a net margin of 2.75%. The firm's quarterly revenue was down 3.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.86 earnings per share. As a group, analysts expect that Deluxe will post 2.77 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Strs Ohio purchased a new position in Deluxe in the 1st quarter worth approximately $30,000. GAMMA Investing LLC lifted its holdings in Deluxe by 1,067.0% in the 1st quarter. GAMMA Investing LLC now owns 2,229 shares of the business services provider's stock worth $35,000 after purchasing an additional 2,038 shares in the last quarter. Security National Bank lifted its holdings in Deluxe by 97.8% in the 1st quarter. Security National Bank now owns 3,567 shares of the business services provider's stock worth $56,000 after purchasing an additional 1,764 shares in the last quarter. Quarry LP raised its holdings in shares of Deluxe by 105.8% during the 1st quarter. Quarry LP now owns 3,685 shares of the business services provider's stock worth $58,000 after acquiring an additional 1,894 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of Deluxe by 11.2% during the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 7,874 shares of the business services provider's stock worth $124,000 after acquiring an additional 790 shares in the last quarter. 93.90% of the stock is owned by hedge funds and other institutional investors.

About Deluxe

Deluxe Corporation provides technology-enabled solutions to enterprises, small businesses, and financial institutions in the United States, Canada, and Australia. It operates through Merchant Services, B2B Payments, Data Solutions, and Print segments. The Merchant Services offers credit and debit card authorization and payment systems, as well as processing services primarily to small and medium-sized retail and service businesses.