Verifone Systems, Inc. (PAY) Downgraded to Sell at Zacks Investment Research
Verifone Systems, Inc. (NYSE:PAY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Friday.
According to Zacks, “VeriFone’s third-quarter fiscal 2017 results were unimpressive. Earnings were in line with the Zacks Consensus Estimate but declined on a year-over-year basis due to weak top-line growth. The decline can be attributed to sluggishness in the Asia-Pacific and North America regions. This was partially offset by strong revenue growth in Latin America and Europe, Middle East and Africa (EMEA). Management expects this weakness to continue, which along with the taxi business divestiture, compelled it to lower fiscal 2017 guidance. Notably, the stock has underperformed the industry on a year-to-date basis. However, the company believes that strength in retail and SMB will help the North America segment revenues to recover going forward. We believe that the company's strong product portfolio that now includes the likes of Carbon 8 and Engage will help in expanding customer base in the long haul.”
Several other equities research analysts have also recently weighed in on PAY. Piper Jaffray Companies restated a “hold” rating and issued a $20.00 price objective on shares of Verifone Systems in a research report on Friday. BidaskClub upgraded shares of Verifone Systems from a “hold” rating to a “buy” rating in a research report on Wednesday, July 19th. Imperial Capital lowered their price target on shares of Verifone Systems from $20.00 to $19.00 and set an “in-line” rating for the company in a research report on Tuesday, June 13th. BTIG Research reaffirmed a “neutral” rating on shares of Verifone Systems in a research note on Monday, June 12th. Finally, Barclays PLC reaffirmed an “equal weight” rating and issued a $20.00 price target (down previously from $22.00) on shares of Verifone Systems in a research note on Sunday, June 11th. One analyst has rated the stock with a sell rating, fourteen have given a hold rating and two have assigned a buy rating to the company’s stock. Verifone Systems presently has an average rating of “Hold” and a consensus target price of $18.48.
Shares of Verifone Systems (PAY) traded down 1.39% during mid-day trading on Friday, hitting $19.16. 928,849 shares of the stock traded hands. The stock has a 50-day moving average of $19.29 and a 200-day moving average of $18.74. Verifone Systems has a 52 week low of $14.94 and a 52 week high of $20.98. The company’s market cap is $2.14 billion.
Verifone Systems (NYSE:PAY) last posted its earnings results on Thursday, September 7th. The business services provider reported $0.36 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.36. Verifone Systems had a negative net margin of 7.53% and a positive return on equity of 11.55%. The business had revenue of $466.90 million for the quarter, compared to analyst estimates of $464.13 million. During the same period last year, the business posted $0.42 EPS. Verifone Systems’s revenue was down 5.2% compared to the same quarter last year. Analysts anticipate that Verifone Systems will post $1.33 EPS for the current year.
Institutional investors have recently added to or reduced their stakes in the business. Riverhead Capital Management LLC increased its position in Verifone Systems by 80.9% in the second quarter. Riverhead Capital Management LLC now owns 6,693 shares of the business services provider’s stock worth $121,000 after buying an additional 2,993 shares in the last quarter. FNY Managed Accounts LLC purchased a new stake in shares of Verifone Systems during the first quarter worth about $131,000. Bank of Montreal Can grew its position in shares of Verifone Systems by 21.0% during the first quarter. Bank of Montreal Can now owns 7,379 shares of the business services provider’s stock worth $138,000 after purchasing an additional 1,281 shares in the last quarter. LS Investment Advisors LLC grew its position in shares of Verifone Systems by 22.3% during the second quarter. LS Investment Advisors LLC now owns 9,213 shares of the business services provider’s stock worth $167,000 after purchasing an additional 1,679 shares in the last quarter. Finally, Shelton Capital Management purchased a new stake in shares of Verifone Systems during the first quarter worth about $203,000.
Verifone Systems Company Profile
VeriFone Systems, Inc offers payments and commerce solutions. The Company is engaged in designing, manufacturing, marketing and supplying a range of payment solutions and complementary services. It provides solutions and services for the retail point-of-sale (POS) that enable various forms of commerce.
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