ACI Worldwide (NASDAQ:ACIW) Lowered to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded ACI Worldwide from a "strong-buy" to a "hold" rating, indicating a shift in market sentiment towards the stock.
• ACI Worldwide reported a quarterly EPS of $0.35, exceeding the consensus estimate by $0.08, and showed a 7.4% year-over-year revenue growth.
• The company's average rating is a "Moderate Buy" with a consensus price target of $60.00, while several analysts have recently shifted their ratings on the stock.

ACI Worldwide (NASDAQ:ACIW - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

A number of other research analysts have also recently commented on the company. Stephens upgraded ACI Worldwide from an "equal weight" rating to an "overweight" rating and set a $60.00 price objective on the stock in a report on Thursday, July 17th. Wall Street Zen cut ACI Worldwide from a "strong-buy" rating to a "hold" rating in a report on Saturday, August 9th. Jefferies Financial Group reduced their price objective on shares of ACI Worldwide from $68.00 to $60.00 and set a "buy" rating on the stock in a report on Tuesday, May 27th. Finally, DA Davidson upgraded shares of ACI Worldwide from a "neutral" rating to a "buy" rating and set a $60.00 price target for the company in a research report on Monday, May 12th. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $60.00.

ACI Worldwide Trading Up 0.7%

NASDAQ:ACIW traded up $0.35 during trading hours on Thursday, hitting $48.49. The company had a trading volume of 691,964 shares, compared to its average volume of 756,738. ACI Worldwide has a 1 year low of $40.45 and a 1 year high of $59.71. The company has a market cap of $5.00 billion, a P/E ratio of 20.46 and a beta of 1.07. The company has a 50-day moving average of $45.25 and a 200 day moving average of $48.99. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 0.62.

ACI Worldwide (NASDAQ:ACIW - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The technology company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.08. ACI Worldwide had a net margin of 14.76% and a return on equity of 19.09%. The firm had revenue of $401.26 million for the quarter, compared to analysts' expectations of $380.45 million. During the same quarter in the previous year, the company posted $0.47 EPS. The company's revenue was up 7.4% compared to the same quarter last year. ACI Worldwide has set its Q3 2025 guidance at EPS. Sell-side analysts expect that ACI Worldwide will post 2 earnings per share for the current year.

Insiders Place Their Bets

In other ACI Worldwide news, Director Mary P. Harman sold 7,194 shares of the company's stock in a transaction dated Tuesday, June 10th. The stock was sold at an average price of $47.48, for a total transaction of $341,571.12. Following the sale, the director owned 34,388 shares in the company, valued at $1,632,742.24. This represents a 17.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Janet O. Estep sold 4,500 shares of ACI Worldwide stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $44.66, for a total value of $200,970.00. Following the completion of the transaction, the director owned 77,631 shares of the company's stock, valued at $3,467,000.46. The trade was a 5.48% decrease in their position. The disclosure for this sale can be found here. 1.10% of the stock is currently owned by corporate insiders.

Institutional Trading of ACI Worldwide

Several hedge funds have recently added to or reduced their stakes in ACIW. State of Wyoming purchased a new stake in shares of ACI Worldwide in the 2nd quarter valued at approximately $37,000. Public Sector Pension Investment Board increased its holdings in shares of ACI Worldwide by 5.8% in the 2nd quarter. Public Sector Pension Investment Board now owns 397,024 shares of the technology company's stock valued at $18,227,000 after acquiring an additional 21,940 shares during the last quarter. FORA Capital LLC acquired a new stake in shares of ACI Worldwide during the 2nd quarter worth about $209,000. Headlands Technologies LLC raised its position in shares of ACI Worldwide by 218.3% during the 2nd quarter. Headlands Technologies LLC now owns 24,630 shares of the technology company's stock worth $1,131,000 after acquiring an additional 16,892 shares in the last quarter. Finally, Tower Research Capital LLC TRC lifted its stake in ACI Worldwide by 836.5% during the second quarter. Tower Research Capital LLC TRC now owns 15,208 shares of the technology company's stock worth $698,000 after purchasing an additional 13,584 shares during the last quarter. Institutional investors and hedge funds own 94.74% of the company's stock.

ACI Worldwide Company Profile

ACI Worldwide, Inc, a software company, develops, markets, installs, and supports a range of software products and solutions for facilitating digital payments in the United States and internationally. The company operates in three segments: Banks, Merchants, and Billers. The company offers ACI Acquiring, a solution to process credit, debit, and prepaid card transactions, deliver digital innovation, and fraud prevention; ACI Issuing, a digital payment issuing solution for new payment offering; and ACI Enterprise Payments Platform that provides payment processing and orchestration capabilities for digital payments.