Shift4 Payments Inc. (FOUR) can make a big difference with a little luck

Shift4 Payments Inc. (NYSE: FOUR) stock fell -3.52% on Tuesday to $61.61 against a previous-day closing price of $63.86. With 1.94 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.15 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $65.31 whereas the lowest price it dropped to was $61.57. The 52-week range on FOUR shows that it touched its highest point at $66.86 and its lowest point at $29.39 during that stretch. It currently has a 1-year price target of $64.81.

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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 FOUR was down-trending over the past week, with a drop of -4.61%, but this was up by 15.50% over a month. Three-month performance surged to 35.79% while six-month performance rose 79.94%. The stock gained 32.69% in the past year, while it has gained 10.16% so far this year. A look at the trailing 12-month EPS for FOUR yields 0.39 with Next year EPS estimates of 1.94. For the next quarter, that number is 0.38. This implies an EPS growth rate of -269.70% for this year and 47.64% for next year.

Float and Shares Shorts:

At present, 82.46 million FOUR shares are outstanding with a float of 51.72 million shares on hand for trading. On Oct 13, 2022, short shares totaled 10.88 million, which was 19.88% higher than short shares on Sep 14, 2022. In addition to Mr. Jared Isaacman as the firm’s Founder, CEO & Chairman, Mr. David Taylor Lauber serves as its Pres & Chief Strategy Officer.

Institutional Ownership:

Through their ownership of 115.67% of FOUR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 61.70% of FOUR, in contrast to 47.61% held by mutual funds. Shares owned by individuals account for 2.08%. As the largest shareholder in FOUR with 14.96% of the stake, Wellington Management Co. LLP holds 7,927,914 shares worth 7,927,914. A second-largest stockholder of FOUR, Macquarie Investment Management B, holds 5,366,158 shares, controlling over 10.12% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in FOUR, holding 4,535,925 shares or 8.56% stake. With a 4.98% stake in FOUR, the Hartford Mid Cap Fund is the largest stakeholder. A total of 2,640,572 shares are owned by the mutual fund manager. The Delaware Smid Cap Growth Fund, which owns about 3.25% of FOUR stock, is the second-largest Mutual Fund holder. It holds 1,721,818 shares valued at 96.3 million. Vanguard Total Stock Market Index holds 2.89% of the stake in FOUR, owning 1,532,163 shares worth 85.69 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FOUR since 18 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 3 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 FOUR analysts setting a high price target of $97.00 and a low target of $32.00, the average target price over the next 12 months is $65.24. Based on these targets, FOUR could surge 57.44% to reach the target high and fall by -48.06% to reach the target low. Reaching the average price target will result in a growth of 5.89% 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. FOUR will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of $1.48 being high and $1.03 being low. For FOUR, this leads to a yearly average estimate of $1.32. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Shift4 Payments Inc. surprised analysts by $0.01 when it reported $0.44 EPS against a consensus estimate of $0.43. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is $0.55 and the low estimate is $0.10. The average estimate for the next quarter is thus $0.38.

Summary of Insider Activity:

Insiders traded FOUR stock several times over the past three months with 0 Buys and 7 Sells. In these transactions, 0 shares were bought while 19,070 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 1,040,521 while 138,045 shares were sold.

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