Wolfe Research Upgrades BILL (NYSE:BILL) to Outperform

Key Points

• Wolfe Research upgraded BILL (NYSE:BILL) from a "peer perform" rating to "outperform," with a target price of $70.00, indicating a potential upside of 32.25% from its current price.
• Stock buyback program authorized for $300.00 million, allowing the company to repurchase up to 7.2% of its shares, which suggests confidence in the stock's undervaluation.
• BILL reported $0.53 earnings per share for the last quarter, exceeding the consensus estimate by $0.12, with year-over-year revenue growth of 11.5% to $383.35 million.

BILL (NYSE:BILL - Get Free Report) was upgraded by investment analysts at Wolfe Research from a "peer perform" rating to an "outperform" rating in a report released on Thursday,Benzinga reports. The brokerage presently has a $70.00 price target on the stock. Wolfe Research's price target indicates a potential upside of 32.25% from the company's current price.

Several other brokerages also recently commented on BILL. Needham & Company LLC reiterated a "buy" rating and issued a $75.00 target price on shares of BILL in a report on Thursday, August 28th. Oppenheimer reiterated an "outperform" rating and issued a $55.00 target price on shares of BILL in a report on Thursday, August 28th. Deutsche Bank Aktiengesellschaft began coverage on shares of BILL in a report on Thursday, July 17th. They issued a "hold" rating and a $49.00 target price for the company. Morgan Stanley downgraded shares of BILL from an "overweight" rating to an "equal weight" rating and lowered their target price for the company from $60.00 to $55.00 in a report on Wednesday, June 11th. Finally, Evercore ISI lowered their target price on shares of BILL from $50.00 to $48.00 and set an "in-line" rating for the company in a report on Thursday, August 28th. Eleven investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $60.00.

BILL Stock Up 4.0%

Shares of NYSE BILL opened at $52.93 on Thursday. The firm has a market cap of $5.38 billion, a PE ratio of -330.80, a P/E/G ratio of 14.58 and a beta of 1.37. BILL has a 12-month low of $36.55 and a 12-month high of $100.19. The company's fifty day simple moving average is $44.75 and its 200 day simple moving average is $45.17. The company has a quick ratio of 1.58, a current ratio of 1.58 and a debt-to-equity ratio of 0.38.

BILL (NYSE:BILL - Get Free Report) last released its quarterly earnings data on Wednesday, August 27th. The company reported $0.53 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.12. BILL had a net margin of 1.63% and a return on equity of 1.16%. The firm had revenue of $383.35 million for the quarter, compared to the consensus estimate of $376.43 million. During the same quarter in the prior year, the company posted $0.57 earnings per share. The business's revenue was up 11.5% on a year-over-year basis. BILL has set its FY 2026 guidance at 2.000-2.200 EPS. Q1 2026 guidance at 0.490-0.520 EPS. As a group, sell-side analysts forecast that BILL will post 0.12 earnings per share for the current fiscal year.

BILL declared that its Board of Directors has authorized a share repurchase program on Wednesday, August 27th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the company to buy up to 7.2% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, insider Rajesh A. Aji sold 1,780 shares of BILL stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $45.25, for a total value of $80,545.00. Following the completion of the transaction, the insider directly owned 9,298 shares in the company, valued at approximately $420,734.50. The trade was a 16.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 4.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On BILL

Hedge funds have recently bought and sold shares of the company. Mirae Asset Global Investments Co. Ltd. grew its stake in BILL by 3,947.7% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 15,098 shares of the company's stock valued at $693,000 after acquiring an additional 14,725 shares in the last quarter. Allspring Global Investments Holdings LLC purchased a new position in BILL during the first quarter valued at approximately $570,000. Cetera Investment Advisers purchased a new position in BILL during the fourth quarter valued at approximately $467,000. GAMMA Investing LLC grew its stake in BILL by 303.9% during the first quarter. GAMMA Investing LLC now owns 1,236 shares of the company's stock valued at $57,000 after acquiring an additional 930 shares in the last quarter. Finally, Asset Management One Co. Ltd. grew its stake in BILL by 145.6% during the first quarter. Asset Management One Co. Ltd. now owns 2,203 shares of the company's stock valued at $101,000 after acquiring an additional 1,306 shares in the last quarter. Hedge funds and other institutional investors own 97.99% of the company's stock.

About BILL

BILL Holdings, Inc provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency.

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