Simons Doyle, a director at Fiserv Inc . (NASDAQ:NYSE:FI), recently sold 40,000 shares of the company. The shares were sold at a weighted average price of $201.97, resulting in a total transaction value of approximately $8.08 million. This transaction was executed in multiple trades with prices ranging from $201.89 to $202.23. Following this sale, Doyle retains ownership of 76,180 shares in the company.
In other recent news, Fiserv's third-quarter financial results led to several price target increases and ratings affirmations from financial firms. KeyBanc raised Fiserv's price target to $225, maintaining an Overweight rating, while TD Cowen increased the target to $230, keeping a Hold rating. RBC Capital Markets also elevated its price target to $224, reiterating an Outperform rating. Wells Fargo boosted its target to $220, retaining an Overweight rating, and Baird increased its target to $220, maintaining an Outperform rating.
These adjustments followed Fiserv's third-quarter earnings report, where the company's adjusted earnings per share and updated full-year 2024 guidance surpassed analyst predictions, despite revenue falling short of market expectations. The company's Merchant Solutions segment experienced stable growth, supported by a consistent rise in Clover revenue, which saw a 28% year-over-year increase.
Fiserv also raised its revenue and adjusted EPS guidance for 2024 at the lower end of its previous projections. The company improved its operating margin expansion outlook to greater than or equal to 150 basis points, compared to the earlier forecast of over 135 basis points. Free cash flow projections have also been revised upward.
Furthermore, Fiserv announced new initiatives such as a partnership with DoorDash (NASDAQ:DASH), a proof of concept with Walmart (NYSE:WMT), and the expansion of its Clover offerings. These developments are part of Fiserv's ongoing efforts to enhance its financial services offerings and improve cash flow management for businesses.
InvestingPro Insights
The recent sale of 40,000 shares by Fiserv Inc. (NASDAQ:FI) director Simons Doyle comes at a time when the company's stock is showing strong performance. According to InvestingPro data, Fiserv's stock is trading near its 52-week high, with a price that is 99.42% of its highest point over the past year. This aligns with the company's impressive 75.28% price total return over the last year.
Fiserv's financial metrics paint a picture of a robust company in the Financial Services industry. With a market capitalization of $115.77 billion, it's a significant player in its sector. The company's revenue for the last twelve months as of Q3 2023 stood at $20.12 billion, with a revenue growth of 6.99% during the same period. This growth is complemented by a strong gross profit margin of 61.06%, indicating efficient operations.
InvestingPro Tips highlight that Fiserv is trading at a high earnings multiple, with a P/E ratio of 38.91. This suggests that investors are willing to pay a premium for the company's shares, possibly due to its strong market position and growth prospects. Additionally, Fiserv has been profitable over the last twelve months, and analysts predict continued profitability for the current year.
It's worth noting that while the stock has shown impressive returns, it is currently trading at a high Price / Book multiple of 4.17, which may indicate that the stock is relatively expensive compared to its book value. This aligns with another InvestingPro Tip suggesting that the stock is trading at a high P/E ratio relative to its near-term earnings growth.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 13 more InvestingPro Tips available for Fiserv, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.