Fiserv Inc. (NASDAQ: FISV) stock fell -1.40% on Friday to $106.66 against a previous-day closing price of $108.17. With 4.69 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.22 million shares. During the session, the Information Technology Services company that operates in wider Technology sector, reached to the highest price of $107.99 whereas the lowest price it dropped to was $105.68. The 52-week range on FISV shows that it touched its highest point at $119.86 and its lowest point at $87.03 during that stretch. It currently has a 1-year price target of $122.91. Beta for the stock currently stands at 0.87.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FISV was up-trending over the past week, with a rise of 0.93%, but this was up by 13.64% over a month. Three-month performance surged to 4.02% while six-month performance fell -1.57%. The stock lost -1.91% in the past year, while it has gained 2.77% so far this year. A look at the trailing 12-month EPS for FISV yields 3.08 with Next year EPS estimates of 7.42. For the next quarter, that number is 1.71. This implies an EPS growth rate of 41.70% for this year and 14.36% for next year. EPS is expected to grow by 15.33% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -0.90%.
Float and Shares Shorts:
At present, 645.20 million FISV shares are outstanding with a float of 612.34 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.47 million, which was 1.32% higher than short shares on Jun 14, 2022. In addition to Mr. Frank J. Bisignano as the firm’s Pres, CEO & Chairman, Mr. Robert W. Hau serves as its Chief Financial Officer.
Through their ownership of 92.88% of FISV’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.56% of FISV, in contrast to 41.34% held by mutual funds. Shares owned by individuals account for 15.52%. As the largest shareholder in FISV with 7.04% of the stake, The Vanguard Group, Inc. holds 45,526,788 shares worth 45,526,788. A second-largest stockholder of FISV, T. Rowe Price Associates, Inc., holds 43,567,217 shares, controlling over 6.74% of the firm’s shares. Dodge & Cox is the third largest shareholder in FISV, holding 36,917,391 shares or 5.71% stake. With a 3.58% stake in FISV, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 23,146,600 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.65% of FISV stock, is the second-largest Mutual Fund holder. It holds 17,152,442 shares valued at 1.53 billion. Vanguard 500 Index Fund holds 1.99% of the stake in FISV, owning 12,877,269 shares worth 1.15 billion.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, FISV reported revenue of $4.45B and operating income of $860.00M. Over the past year, revenue came in at $17.01B while operating income stood at $2.88B. It generated $598.00M net income for the quarter, which came to $2.03B over the last twelve months. The EBITDA in the recently reported quarter was $1.60B and diluted EPS was $0.92. EBITDA for the full year was $5.91B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FISV since 34 analysts follow the stock currently. There are 17 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 7 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FISV analysts setting a high price target of $145.00 and a low target of $95.00, the average target price over the next 12 months is $121.93. Based on these targets, FISV could surge 35.95% to reach the target high and fall by -10.93% to reach the target low. Reaching the average price target will result in a growth of 14.32% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. FISV will report FY 2022 earnings on 02/07/2023. Analysts have provided yearly estimates in a range of $6.55 being high and $6.29 being low. For FISV, this leads to a yearly average estimate of $6.48. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Fiserv Inc. surprised analysts by $0.01 when it reported $1.56 EPS against a consensus estimate of $1.55. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $2.08 and the low estimate is $1.65. The average estimate for the next quarter is thus $1.72.
Summary of Insider Activity:
Insiders traded FISV stock several times over the past three months with 14 Buys and 3 Sells. In these transactions, 1,528,645 shares were bought while 21,349 shares were sold. The number of buy transactions has increased to 46 while that of sell transactions has risen to 51 over the past year. The total number of shares bought during that period was 2,956,334 while 1,137,717 shares were sold.