Does Global Payments Inc. (GPN) offer a good opportunity for investors?

Global Payments Inc. (NYSE: GPN) stock fell -2.76% on Wednesday to $98.99 against a previous-day closing price of $101.80. With 1.65 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.04 million shares. During the session, the Specialty Business Services company that operates in wider Industrials sector, reached to the highest price of $101.01 whereas the lowest price it dropped to was $98.78. The 52-week range on GPN shows that it touched its highest point at $136.88 and its lowest point at $92.27 during that stretch. It currently has a 1-year price target of $137.16. With its current market cap of 26.47 billion, GPN has annualized dividend of $1.00 while the current yield stands at 1.01%. Beta for the stock currently stands at 1.01.

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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 GPN was down-trending over the past week, with a drop of -4.62%, but this was down by -6.37% over a month. Three-month performance dropped to -12.98% while six-month performance rose 3.00%. The stock lost -20.81% in the past year, while it has lost -0.33% so far this year. A look at the trailing 12-month EPS for GPN yields -0.47 with Next year EPS estimates of 11.82. For the next quarter, that number is 2.59. This implies an EPS growth rate of -87.70% for this year and 14.37% for next year. EPS is expected to grow by 14.55% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -27.30%.

Float and Shares Shorts:

At present, 263.12 million GPN shares are outstanding with a float of 260.24 million shares on hand for trading. On Apr 27, 2023, short shares totaled 3.06 million, which was 1.17% higher than short shares on Mar 30, 2023. In addition to Mr. Jeffrey S. Sloan J.D. as the firm’s CEO & Director, Mr. Cameron M. Bready CPA serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 89.22% of GPN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.81% of GPN, in contrast to 47.80% held by mutual funds. Shares owned by individuals account for 39.81%. As the largest shareholder in GPN with 9.24% of the stake, The Vanguard Group, Inc. holds 24,323,244 shares worth 24,323,244. A second-largest stockholder of GPN, Wellington Management Co. LLP, holds 14,192,567 shares, controlling over 5.39% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in GPN, holding 12,824,626 shares or 4.87% stake. With a 2.89% stake in GPN, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 7,604,346 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.17% of GPN stock, is the second-largest Mutual Fund holder. It holds 5,720,001 shares valued at 644.7 million. Vanguard Wellington Fund holds 2.14% of the stake in GPN, owning 5,640,174 shares worth 635.7 million.

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 Mar 30, 2023, GPN reported revenue of $2.28B and operating income of $455.43M. The EBITDA in the recently reported quarter was $885.96M and diluted EPS was -$2.42.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GPN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With GPN analysts setting a high price target of $208.00 and a low target of $89.00, the average target price over the next 12 months is $137.29. Based on these targets, GPN could surge 110.12% to reach the target high and fall by -10.09% to reach the target low. Reaching the average price target will result in a growth of 38.69% 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.

Summary of Insider Activity:

Insiders traded GPN stock several times over the past three months with 11 Buys and 1 Sells. In these transactions, 26,442 shares were bought while 1,562 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 187,403 while 178,170 shares were sold.

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