Zacks Investment Research Downgrades First Data Corporation (FDC) to Sell
First Data Corporation (NYSE:FDC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “First Data Corporation is a commerce-enabling technology and solutions company. The company's second-quarter 2017 earnings matched the Zacks Consensus Estimate and increased year over year. First Data’s focus on globalizing its offerings, acquisitions and strategic partnerships and a healthy business around large and small banks are positives. However, the company is subject to seasonality and foreign exchange risk and has no intention of paying cash dividend at present. Year to date, the stock has outperformed the industry it belongs to. “
Several other equities analysts have also recently commented on the stock. Keefe, Bruyette & Woods restated a “buy” rating and issued a $21.00 target price on shares of First Data Corporation in a research report on Friday. ValuEngine upgraded shares of First Data Corporation from a “hold” rating to a “buy” rating in a research report on Monday, October 2nd. Buckingham Research assumed coverage on shares of First Data Corporation in a research report on Monday, October 2nd. They issued a “buy” rating and a $23.00 target price for the company. Credit Suisse Group restated an “outperform” rating on shares of First Data Corporation in a research report on Tuesday, September 5th. Finally, Robert W. Baird restated a “hold” rating and issued a $20.00 target price on shares of First Data Corporation in a research report on Friday, August 25th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and twenty-three have given a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $19.05.
Shares of First Data Corporation (NYSE:FDC) traded up 0.11% during mid-day trading on Tuesday, reaching $18.00. 5,118,459 shares of the company’s stock traded hands. The stock has a market cap of $16.61 billion, a PE ratio of 30.10 and a beta of 1.74. The firm has a 50 day moving average price of $18.13 and a 200-day moving average price of $17.42. First Data Corporation has a 12 month low of $13.01 and a 12 month high of $19.20.
First Data Corporation (NYSE:FDC) last issued its earnings results on Monday, August 7th. The business services provider reported $0.40 EPS for the quarter, beating the consensus estimate of $0.34 by $0.06. The company had revenue of $3.03 billion during the quarter, compared to analysts’ expectations of $2.98 billion. First Data Corporation had a net margin of 4.66% and a return on equity of 26.25%. The business’s revenue for the quarter was up 3.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.35 EPS. On average, analysts predict that First Data Corporation will post $1.53 earnings per share for the current fiscal year.
In other First Data Corporation news, insider Jeff Shanahan bought 77,453 shares of First Data Corporation stock in a transaction on Wednesday, August 23rd. The shares were purchased at an average cost of $18.04 per share, with a total value of $1,397,252.12. Following the acquisition, the insider now directly owns 1,160,964 shares of the company’s stock, valued at approximately $20,943,790.56. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Thomas Joseph Higgins sold 31,718 shares of the business’s stock in a transaction that occurred on Friday, September 15th. The stock was sold at an average price of $18.15, for a total transaction of $575,681.70. Following the sale, the insider now directly owns 347,493 shares in the company, valued at $6,306,997.95. The disclosure for this sale can be found here. Over the last three months, insiders have acquired 340,217 shares of company stock worth $6,139,786 and have sold 151,830 shares worth $2,754,035. Insiders own 6.30% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. American Century Companies Inc. lifted its position in shares of First Data Corporation by 4,509.6% in the 2nd quarter. American Century Companies Inc. now owns 4,545,711 shares of the business services provider’s stock worth $82,732,000 after purchasing an additional 4,447,098 shares during the period. Prudential Financial Inc. lifted its position in shares of First Data Corporation by 4.7% in the 2nd quarter. Prudential Financial Inc. now owns 1,270,900 shares of the business services provider’s stock worth $23,131,000 after purchasing an additional 57,600 shares during the period. Russell Investments Group Ltd. lifted its position in shares of First Data Corporation by 51.3% in the 2nd quarter. Russell Investments Group Ltd. now owns 159,661 shares of the business services provider’s stock worth $2,905,000 after purchasing an additional 54,118 shares during the period. Nuveen Asset Management LLC lifted its position in shares of First Data Corporation by 187.9% in the 1st quarter. Nuveen Asset Management LLC now owns 1,136,196 shares of the business services provider’s stock worth $17,611,000 after purchasing an additional 741,547 shares during the period. Finally, Stifel Financial Corp acquired a new position in shares of First Data Corporation in the 1st quarter worth approximately $315,000. Hedge funds and other institutional investors own 39.13% of the company’s stock.
First Data Corporation Company Profile
First Data Corporation is a provider of commerce-enabling technology and solutions for merchants, financial institutions and card issuers. The Company’s segments are Global Business Solutions (GBS), Global Financial Solutions (GFS), Network & Security Solutions (NSS), and Corporate. The GBS segment provides businesses of all sizes and types with a range of solutions at the point of sale, including merchant acquiring, e-commerce, mobile commerce, point-of-sale, and other business solutions.
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