Zacks Investment Research Lowers Fidelity National Information Servcs (FIS) to Sell

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Zacks Investment Research lowered shares of Fidelity National Information Servcs (NYSE:FIS) from a hold rating to a sell rating in a research report sent to investors on Wednesday.

According to Zacks, “Shares of Fidelity National Information Services have underperformed the industry in the past year. Also, earnings estimate for fourth-quarter 2018 has witnessed downward revision lately. However, the company displays an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters. It remains well positioned for growth backed by its attractive core business with a recurring revenue model, digitization, diversified product portfolio, benefits from strategic acquisitions, as well as several ongoing strategic initiatives. Nevertheless, the company remains exposed to significant competition from new entrants. Also, its capital deployment activities seem to be unsustainable.”

A number of other research analysts have also recently commented on the stock. Citigroup decreased their target price on shares of Fidelity National Information Servcs from $124.00 to $120.00 and set a buy rating on the stock in a research report on Wednesday, October 31st. Cantor Fitzgerald increased their price target on shares of Fidelity National Information Servcs from $117.00 to $122.00 and gave the stock an overweight rating in a research report on Wednesday, October 31st. Goldman Sachs Group raised shares of Fidelity National Information Servcs from a neutral rating to a buy rating and increased their price target for the stock from $108.00 to $128.00 in a research report on Tuesday, December 11th. ValuEngine raised shares of Fidelity National Information Servcs from a hold rating to a buy rating in a research report on Wednesday, October 31st. Finally, SunTrust Banks increased their price target on shares of Fidelity National Information Servcs to $125.00 and gave the stock a buy rating in a research report on Monday, September 24th. They noted that the move was a valuation call. One analyst has rated the stock with a sell rating, one has given a hold rating and thirteen have issued a buy rating to the company. Fidelity National Information Servcs has an average rating of Buy and a consensus price target of $119.38.

NYSE FIS traded down $0.30 during trading hours on Wednesday, reaching $103.53. The company had a trading volume of 1,303,978 shares, compared to its average volume of 1,936,722. Fidelity National Information Servcs has a 1-year low of $92.12 and a 1-year high of $110.83. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.34 and a quick ratio of 1.34. The stock has a market capitalization of $33.63 billion, a P/E ratio of 23.42, a PEG ratio of 1.49 and a beta of 0.86.

Fidelity National Information Servcs (NYSE:FIS) last posted its earnings results on Tuesday, October 30th. The information technology services provider reported $1.33 EPS for the quarter, beating the Zacks’ consensus estimate of $1.30 by $0.03. Fidelity National Information Servcs had a net margin of 17.89% and a return on equity of 15.78%. The company had revenue of $2.08 billion for the quarter, compared to analysts’ expectations of $2.09 billion. During the same quarter in the prior year, the company posted $1.18 earnings per share. Fidelity National Information Servcs’s revenue for the quarter was down .6% compared to the same quarter last year. As a group, analysts anticipate that Fidelity National Information Servcs will post 5.22 EPS for the current year.

The company also recently announced a quarterly dividend, which was paid on Friday, December 28th. Investors of record on Friday, December 14th were paid a dividend of $0.32 per share. The ex-dividend date was Thursday, December 13th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.24%. Fidelity National Information Servcs’s payout ratio is 28.96%.

In related news, CAO Kathleen T. Thompson sold 8,482 shares of the company’s stock in a transaction that occurred on Wednesday, December 12th. The shares were sold at an average price of $106.86, for a total transaction of $906,386.52. Following the sale, the chief accounting officer now directly owns 8,917 shares in the company, valued at $952,870.62. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Gregory G. Montana sold 50,354 shares of the company’s stock in a transaction that occurred on Tuesday, November 13th. The stock was sold at an average price of $105.46, for a total transaction of $5,310,332.84. The disclosure for this sale can be found here. 2.08% of the stock is currently owned by corporate insiders.

Several hedge funds have recently added to or reduced their stakes in FIS. Alliancebernstein L.P. increased its stake in shares of Fidelity National Information Servcs by 100.0% during the third quarter. Alliancebernstein L.P. now owns 2,378,617 shares of the information technology services provider’s stock worth $259,436,000 after buying an additional 1,189,590 shares during the period. Los Angeles Capital Management & Equity Research Inc. increased its stake in Fidelity National Information Servcs by 12,015.1% in the third quarter. Los Angeles Capital Management & Equity Research Inc. now owns 761,192 shares of the information technology services provider’s stock valued at $83,023,000 after purchasing an additional 754,909 shares during the last quarter. Crescent Grove Advisors LLC increased its stake in Fidelity National Information Servcs by 31.5% in the third quarter. Crescent Grove Advisors LLC now owns 1,531,361 shares of the information technology services provider’s stock valued at $167,026,000 after purchasing an additional 366,827 shares during the last quarter. Morgan Stanley increased its stake in Fidelity National Information Servcs by 6.8% in the third quarter. Morgan Stanley now owns 5,320,322 shares of the information technology services provider’s stock valued at $580,287,000 after purchasing an additional 339,407 shares during the last quarter. Finally, Findlay Park Partners LLP increased its stake in Fidelity National Information Servcs by 9.0% in the third quarter. Findlay Park Partners LLP now owns 3,950,000 shares of the information technology services provider’s stock valued at $430,827,000 after purchasing an additional 325,000 shares during the last quarter. Hedge funds and other institutional investors own 87.99% of the company’s stock.

About Fidelity National Information Servcs

Fidelity National Information Services, Inc operates as a financial services technology company in the United States and internationally. It operates through Integrated Financial Solutions and Global Financial Solutions segments. The Integrated Financial Solutions segment offers core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail solutions; corporate liquidity and wealth management services; item processing and output services; government payments solutions; and e-payment solutions.

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