ACI Worldwide Inc. (NASDAQ: ACIW) stock jumped 1.13% on Wednesday to $20.64 against a previous-day closing price of $20.41. With 1.01 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.9 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $20.67 whereas the lowest price it dropped to was $20.11. The 52-week range on ACIW shows that it touched its highest point at $35.87 and its lowest point at $19.68 during that stretch. It currently has a 1-year price target of $29.25. Beta for the stock currently stands at 1.13.
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 ACIW was down-trending over the past week, with a drop of -1.57%, but this was down by -12.58% over a month. Three-month performance dropped to -16.87% while six-month performance fell -20.37%. The stock lost -35.58% in the past year, while it has lost -40.52% so far this year. A look at the trailing 12-month EPS for ACIW yields 1.38 with Next year EPS estimates of 1.30. For the next quarter, that number is 0.91. This implies an EPS growth rate of 75.00% for this year and -3.92% for next year. EPS is expected to grow by 12.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -0.20%.
Float and Shares Shorts:
At present, 113.81 million ACIW shares are outstanding with a float of 111.17 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.11 million, which was 2.73% higher than short shares on Sep 14, 2022. In addition to Mr. Odilon Almeida as the firm’s Pres, CEO & Director, Mr. Scott W. Behrens serves as its Exec. VP, CFO & Chief Accounting Officer.
Through their ownership of 98.80% of ACIW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.53% of ACIW, in contrast to 47.08% held by mutual funds. Shares owned by individuals account for 4.36%. As the largest shareholder in ACIW with 10.86% of the stake, BlackRock Fund Advisors holds 12,380,588 shares worth 12,380,588. A second-largest stockholder of ACIW, The Vanguard Group, Inc., holds 10,891,349 shares, controlling over 9.55% of the firm’s shares. Franklin Mutual Advisers LLC is the third largest shareholder in ACIW, holding 6,326,312 shares or 5.55% stake. With a 3.87% stake in ACIW, the Franklin Small Cap Value Fund is the largest stakeholder. A total of 4,407,583 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 3.01% of ACIW stock, is the second-largest Mutual Fund holder. It holds 3,428,766 shares valued at 83.42 million. Vanguard Total Stock Market Index holds 2.90% of the stake in ACIW, owning 3,311,051 shares worth 80.56 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ACIW since 6 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 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 ACIW analysts setting a high price target of $40.00 and a low target of $27.00, the average target price over the next 12 months is $31.17. Based on these targets, ACIW could surge 93.8% to reach the target high and rise by 30.81% to reach the target low. Reaching the average price target will result in a growth of 51.02% 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. ACIW will report FY 2022 earnings on 03/02/2023. Analysts have provided yearly estimates in a range of $1.42 being high and $1.32 being low. For ACIW, this leads to a yearly average estimate of $1.35. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ACI Worldwide Inc. surprised analysts by $0.14 when it reported $0.20 EPS against a consensus estimate of $0.06. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.97 and the low estimate is $0.87. The average estimate for the next quarter is thus $0.91.
Summary of Insider Activity:
Insiders traded ACIW stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 1,000 shares were bought while 0 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 15 over the past year. The total number of shares bought during that period was 374,579 while 99,015 shares were sold.