Total System Services (TSS) Downgraded to Hold at Zacks Investment Research

Total System Services (NYSE:TSS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Friday. They currently have a $88.00 price target on the credit services provider’s stock. Zacks Investment Research‘s target price indicates a potential upside of 10.19% from the company’s current price.

According to Zacks, “Shares of Total System have outperformed its industry in last year. The company is set to benefit from its robust NetSpend business, while the TransFirst acquisition will support its merchant acquiring business. Numerous acquisitions made by the company have contributed to overall growth.  Following a strong performance in the first nine months of the year, the company raised its 2017 earnings guidance, which instills investors' confidence. Total System has strengthened its capital position by reducing debt to its targeted range. Resumption of share buyback is another positive. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 1.8% upward over the last 60 days. Nevertheless, exposure to foreign exchange volatility and investment expenses might weigh on the margins in the coming quarters.”

TSS has been the topic of a number of other research reports. Cowen reissued a “buy” rating and set a $67.00 price target on shares of Total System Services in a report on Thursday, September 7th. Wells Fargo & Co raised their price target on Total System Services from $70.00 to $72.00 and gave the stock an “outperform” rating in a report on Wednesday, September 27th. Bank of America assumed coverage on Total System Services in a report on Tuesday, September 12th. They set an “underperform” rating and a $64.00 price target on the stock. Jefferies Group raised their price target on Total System Services from $59.00 to $73.00 and gave the stock a “hold” rating in a report on Monday, October 30th. Finally, Mizuho reaffirmed a “hold” rating and issued a $85.00 price objective on shares of Total System Services in a report on Thursday. One analyst has rated the stock with a sell rating, twelve have given a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $73.42.

Shares of Total System Services (NYSE TSS) traded up $0.44 during mid-day trading on Friday, hitting $79.86. The company’s stock had a trading volume of 935,442 shares, compared to its average volume of 1,220,000. The stock has a market capitalization of $14,710.00, a price-to-earnings ratio of 35.49, a price-to-earnings-growth ratio of 1.76 and a beta of 1.10. Total System Services has a 12 month low of $49.98 and a 12 month high of $80.51. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.03 and a current ratio of 1.03.

Total System Services (NYSE:TSS) last released its quarterly earnings results on Tuesday, October 24th. The credit services provider reported $0.88 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.81 by $0.07. Total System Services had a return on equity of 26.25% and a net margin of 8.73%. The firm had revenue of $852.80 million for the quarter, compared to analyst estimates of $842.30 million. During the same quarter last year, the company posted $0.71 earnings per share. The business’s revenue was up 8.0% on a year-over-year basis. research analysts forecast that Total System Services will post 3.2 EPS for the current fiscal year.

In related news, EVP Patricia A. Watson sold 23,608 shares of Total System Services stock in a transaction that occurred on Thursday, November 16th. The stock was sold at an average price of $74.01, for a total transaction of $1,747,228.08. Following the completion of the transaction, the executive vice president now directly owns 21,112 shares in the company, valued at approximately $1,562,499.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 2.60% of the company’s stock.

Several institutional investors have recently modified their holdings of the stock. Parametric Portfolio Associates LLC grew its stake in Total System Services by 4.7% in the 3rd quarter. Parametric Portfolio Associates LLC now owns 199,363 shares of the credit services provider’s stock worth $13,058,000 after acquiring an additional 8,868 shares during the period. Visionary Asset Management Inc. purchased a new stake in Total System Services in the 3rd quarter worth approximately $399,000. IFM Investors Pty Ltd purchased a new stake in Total System Services in the 3rd quarter worth approximately $377,000. Sterling Capital Management LLC grew its stake in Total System Services by 1,366.8% in the 3rd quarter. Sterling Capital Management LLC now owns 300,170 shares of the credit services provider’s stock worth $19,661,000 after acquiring an additional 279,706 shares during the period. Finally, Neuberger Berman Group LLC grew its stake in Total System Services by 90.9% in the 3rd quarter. Neuberger Berman Group LLC now owns 319,843 shares of the credit services provider’s stock worth $20,950,000 after acquiring an additional 152,268 shares during the period. Hedge funds and other institutional investors own 75.93% of the company’s stock.

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About Total System Services

Total System Services, Inc (TSYS) is a payment solutions provider that provides payment processing services, merchant services and related payment services to financial and non-financial institutions. The Company’s segments include North America Services, Merchant Services, NetSpend and International Services.

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