Zacks Research Downgrades ACI Worldwide (NASDAQ:ACIW) to Hold

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 equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Thursday, August 21st,Zacks.com reports.

ACIW has been the topic of several other reports. DA Davidson raised shares of ACI Worldwide from a "neutral" rating to a "buy" rating and set a $60.00 target price on the stock in a research note on Monday, May 12th. Wall Street Zen lowered ACI Worldwide from a "strong-buy" rating to a "hold" rating in a report on Saturday, August 9th. Stephens upgraded ACI Worldwide from an "equal weight" rating to an "overweight" rating and set a $60.00 target price for the company in a report on Thursday, July 17th. Finally, Jefferies Financial Group reduced their target price on ACI Worldwide from $68.00 to $60.00 and set a "buy" rating for the company in a report on Tuesday, May 27th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, ACI Worldwide has a consensus rating of "Moderate Buy" and a consensus target price of $60.00.

ACI Worldwide Price Performance

Shares of NASDAQ:ACIW traded up $0.08 on Thursday, reaching $48.57. 170,826 shares of the company traded hands, compared to its average volume of 753,093. ACI Worldwide has a fifty-two week low of $40.45 and a fifty-two week high of $59.71. The company's 50 day moving average is $45.33 and its 200-day moving average is $48.99. The stock has a market capitalization of $5.01 billion, a PE ratio of 20.49 and a beta of 1.07. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.48 and a quick ratio of 1.48.

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

Insider Buying and Selling at ACI Worldwide

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

Hedge Funds Weigh In On ACI Worldwide

Several hedge funds have recently bought and sold shares of ACIW. Hohimer Wealth Management LLC boosted its holdings in ACI Worldwide by 4.1% during the first quarter. Hohimer Wealth Management LLC now owns 4,962 shares of the technology company's stock valued at $271,000 after acquiring an additional 197 shares during the period. Smartleaf Asset Management LLC boosted its holdings in ACI Worldwide by 5.0% during the first quarter. Smartleaf Asset Management LLC now owns 4,367 shares of the technology company's stock valued at $237,000 after acquiring an additional 207 shares during the period. HighTower Advisors LLC boosted its holdings in ACI Worldwide by 1.4% during the first quarter. HighTower Advisors LLC now owns 15,744 shares of the technology company's stock valued at $861,000 after acquiring an additional 212 shares during the period. Maryland State Retirement & Pension System boosted its holdings in ACI Worldwide by 0.7% during the second quarter. Maryland State Retirement & Pension System now owns 30,828 shares of the technology company's stock valued at $1,415,000 after acquiring an additional 223 shares during the period. Finally, Snowden Capital Advisors LLC boosted its holdings in ACI Worldwide by 3.2% during the fourth quarter. Snowden Capital Advisors LLC now owns 8,048 shares of the technology company's stock valued at $418,000 after acquiring an additional 246 shares during the period. 94.74% of the stock is owned by institutional investors and hedge funds.

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.