Deluxe (NYSE:DLX) Shares Gap Up After Dividend Announcement

Deluxe Corporation (NYSE:DLX) shares gapped up prior to trading on Thursday after the company announced a dividend. The stock had previously closed at $23.90, but opened at $26.88. Deluxe shares last traded at $26.6890, with a volume of 616,902 shares changing hands.

The newly announced dividend which will be paid on Monday, February 23rd. Stockholders of record on Monday, February 9th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date of this dividend is Monday, February 9th. Deluxe’s payout ratio is presently 63.83%.

Wall Street Analysts Forecast Growth

DLX has been the topic of several recent analyst reports. Wall Street Zen upgraded Deluxe from a “buy” rating to a “strong-buy” rating in a research note on Saturday, November 8th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Deluxe in a research report on Monday, December 29th. Finally, CJS Securities raised shares of Deluxe to a “hold” rating in a research report on Thursday, December 11th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $23.00.

Deluxe Trading Down 2.6%

The company has a market cap of $1.19 billion, a P/E ratio of 14.05, a P/E/G ratio of 0.71 and a beta of 1.37. The business has a fifty day simple moving average of $22.62 and a 200 day simple moving average of $20.07. The company has a debt-to-equity ratio of 2.04, a quick ratio of 0.91 and a current ratio of 1.00.

Deluxe (NYSE:DLX) last issued its quarterly earnings results on Wednesday, November 5th. The business services provider reported $1.09 earnings per share for the quarter, beating analysts’ consensus estimates of $0.92 by $0.17. Deluxe had a return on equity of 22.62% and a net margin of 3.99%.The business had revenue of $540.20 million during the quarter, compared to the consensus estimate of $526.50 million. During the same period in the previous year, the business earned $0.84 EPS. The business’s quarterly revenue was up 2.2% on a year-over-year basis. Deluxe has set its FY 2025 guidance at 3.450-3.60 EPS. Analysts anticipate that Deluxe Corporation will post 2.77 earnings per share for the current fiscal year.

Deluxe News Summary

Here are the key news stories impacting Deluxe this week:

• Positive Sentiment: Q4 results beat expectations — Deluxe reported $0.96 EPS vs. about $0.82 consensus and revenue of $535.3M, topping estimates and showing y/y revenue growth. This underscores improving profitability across the business. Deluxe (DLX) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised FY2026 guidance sharply — new EPS guidance of $3.90–$4.30 versus a consensus near $3.49, and revenue guide roughly in line or modestly above expectations. Upward guidance is the primary bullish driver behind recent gains. (Company release / slide deck available with earnings materials.) Deluxe Q4 press release and slides
• Positive Sentiment: Dividend boost — Deluxe announced a quarterly dividend of $0.30 (annualized yield ~4.4%) with an upcoming ex-dividend date in early February, supporting income-focused buyers.
• Positive Sentiment: Analyst and media bullishness on transformation — multiple write-ups highlight Deluxe’s pivot into payments and data as an undervalued story, which helped trigger a recent sharp rally. Deluxe Transformation Accelerates As Payments And Data Drive Undervalued Story
• Neutral Sentiment: Earnings call transcripts and slide deck available — management commentary on margin drivers, payments growth and capital allocation is published for review; useful for assessing cadence and sustainability of the guide. Deluxe Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Some news entries reference “Royal Deluxe” (HK:3789); not related to Deluxe Corporation (DLX) and should be disregarded for DLX-specific analysis.
• Negative Sentiment: Leverage and liquidity metrics are modest concerns — reported current ratio ~0.99, quick ratio ~0.91 and debt/equity near 2.13. Higher leverage and sub-1 liquidity ratios can limit flexibility and make investors wary despite better operating performance.
• Negative Sentiment: Profit-taking and valuation reset after a sharp rally — the stock ran up following the beat/guidance and bullish write-ups; intraday weakness is consistent with short-term profit taking and rotation even though fundamentals improved. Analysts and investors will watch execution vs. the raised guide closely.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of DLX. Strs Ohio acquired a new stake in shares of Deluxe in the first quarter valued at approximately $30,000. Raymond James Financial Inc. bought a new position in Deluxe in the 2nd quarter worth approximately $31,000. TD Waterhouse Canada Inc. acquired a new stake in Deluxe in the 4th quarter valued at approximately $45,000. Hillsdale Investment Management Inc. raised its stake in Deluxe by 227.8% during the 3rd quarter. Hillsdale Investment Management Inc. now owns 2,950 shares of the business services provider’s stock valued at $57,000 after acquiring an additional 2,050 shares in the last quarter. Finally, Federated Hermes Inc. raised its stake in Deluxe by 110.6% during the 3rd quarter. Federated Hermes Inc. now owns 3,089 shares of the business services provider’s stock valued at $60,000 after acquiring an additional 1,622 shares in the last quarter. 93.90% of the stock is owned by institutional investors and hedge funds.

Deluxe Company Profile

Deluxe Corporation, founded in 1915 and headquartered in Shoreview, Minnesota, is a provider of integrated business and financial technology solutions. Originally established as a check printing company, Deluxe has evolved its offerings to support small businesses, financial institutions and entrepreneurs with a comprehensive suite of services spanning print, digital and software platforms.

The company’s core business activities include printing checks, forms and promotional materials, as well as delivering digital marketing and customer engagement solutions.