In a surprising move, Retirement Systems of Alabama has decided to reduce its stake in Fiserv, Inc. (NYSE:FI) by 7.7% during the first quarter of this year. This news comes as a shock to many investors and industry analysts, as Fiserv has been consistently performing well in recent years. The Alabama-based institution had previously held 187,697 shares of Fiserv’s stock, but it sold 15,742 shares during this period.
At the end of the first quarter, Retirement Systems of Alabama’s remaining holdings in Fiserv were valued at $21,215,000. This reduction in stake raises questions about the investment strategy of one of Alabama’s largest retirement systems.
Fiserv (NYSE:FI) recently announced its earnings results for the first quarter on April 25th. The business services provider reported earnings per share of $1.58 for the quarter, surpassing the consensus estimate by $0.02. This positive earnings surprise indicates that Fiserv is performing well financially.
The company’s net margin was documented at an impressive 13.36%, showing strong profitability, while their return on equity stood tall at 13.68%. In terms of revenue, Fiserv recorded $4.55 billion in the first quarter alone, exceeding analyst estimates which projected revenue at $4.17 billion.
Comparing these figures to the previous year’s performance highlights significant growth as well with EPS rising from $1.40 to $1.58 within a year. The company’s quarterly revenue also witnessed an impressive increase of 9.9% when compared to the same period last year.
As for future expectations, sell-side analysts predict that Fiserv will continue its upward trajectory and post earnings per share of 7.36 for the current year.
Fiserv, Inc., with its globally distributed subsidiaries, plays a pivotal role in providing payment and financial services technology. The company operates across three segments – Acceptance, Fintech, and Payments. The Acceptance segment focuses on point-of-sale merchant acquiring and digital commerce services, mobile payment solutions, and security products for fraud protection.
Fiserv’s Carat solution takes an omnichannel approach to commerce, while Clover offers a cloud-based platform for point-of-sale systems and business management. Additionally, Clover Connect acts as an independent software vendors platform for businesses that utilize Fiserv’s services.
This move by Retirement Systems of Alabama has caused ripples in the investment community, leading many to question the reasons behind their decision to reduce their stake in such a successful company. It remains to be seen how this will impact Fiserv’s future prospects and whether other institutional investors will follow suit.
Regardless of the reduced stake from Retirement Systems of Alabama, Fiserv’s strong financial performance and innovative technology give confidence to its shareholders and reaffirm its position as a leader in the payment and financial services industry. Investors will be eagerly watching for further updates on the company’s progress in the coming months.
Overall, Fiserv’s continued success demonstrates its ability to adapt to changing market conditions and leverage technological advancements to ensure continued growth. As it continues to navigate the evolving landscape of financial services technology, it remains a prominent player in the industry.
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Institutional Investors Demonstrate Confidence in Fiserv’s Growth Potential
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”FI” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Fiserv, Inc., a global provider of payment and financial services technology, has been attracting attention from institutional investors and hedge funds in recent months. High-profile investors such as Arete Wealth Advisors LLC and Desjardins Global Asset Management Inc. have both made significant investments in the company, demonstrating their confidence in Fiserv’s potential.
Arete Wealth Advisors LLC acquired a new stake in Fiserv during the first quarter, with an investment worth a staggering $342,466,000,000. This substantial purchase reflects the firm’s belief in Fiserv’s future growth prospects and showcases their commitment to optimizing their investment portfolio.
Similarly, Desjardins Global Asset Management Inc. purchased a new stake in Fiserv during the same period, albeit at a comparatively smaller scale of approximately $361,000. Nonetheless, this investment signifies Desjardins’ recognition of Fiserv’s value proposition and its potential for long-term profitability.
CWM LLC also decided to increase its stake in Fiserv by 4.0% during the first quarter by adding an additional 696 shares to their portfolio. With a current valuation of around $2,062,000 for these shares alone, CWM LLC is positioning itself for potential gains as Fiserv continues to expand its presence in the business services sector.
Signaturefd LLC expressed confidence in Fiserv’s growth prospects by increasing its position in the company by 2.7% during the first quarter. Adding an extra 298 shares to their portfolio brought Signaturefd LLC’s total ownership of Fiserv stock to 11,268 shares valued at $1,274,000.
Avantax Advisory Services Inc., with an increased interest of nearly 30%, purchased an additional 2,671 shares of Fiserv stock during the first quarter. This acquisition brings Avantax Advisory Services Inc.’s total ownership to 11,639 shares, valued at $1,316,000. Their decision to increase their stake in Fiserv demonstrates their confidence in the company’s trajectory and potential for continued success.
These institutional investments indicate a strong belief in Fiserv’s ability to deliver value to shareholders and capitalize on emerging market opportunities. Additionally, these moves by high-profile investors highlight Fiserv’s solid reputation within the financial services industry.
As of July 20, 2023, Fiserv stock opened at $127.67. With a 52-week low of $91.55 and a high of $129.50, Fiserv has demonstrated consistent growth over the past year. The company currently has a market capitalization of $78.81 billion, positioning it as a significant player in the financial services technology sector.
Fiserv operates through three segments: Acceptance, Fintech, and Payments. The Acceptance segment offers merchant acquiring and digital commerce services, mobile payment solutions, as well as security and fraud protection products. In addition, the company provides Carat—an omnichannel commerce solution—Clover—a cloud-based point-of-sale and business management platform—and Clover Connect—an independent software vendors platform.
Several research analyst reports have recently highlighted Fiserv’s performance and potential. Stephens raised the company’s price objective from $120.00 to $125.00 in April 2023, reflecting their positive outlook on the stock.
B.Riley also initiated coverage on Fiserv in June 2023 with a “buy” rating and set a price target of $148.00—their optimistic forecast is an endorsement of Fiserv’s strong fundamentals and growth prospects.
Furthermore, Barclays increased their target price from $140 to $150 with an “overweight” rating in April 2023—this indicates their belief that Fiserv is undervalued relative to its potential for future gains.
Mizuho, meanwhile, boosted their price target from $135.00 to $140.00 in May 2023, further endorsing the positive outlook for Fiserv’s stock.
Goldman Sachs remains neutral on Fiserv but raised their price objective from $111.00 to $123.00 in April 2023—a testimony to the company’s stability and potential for moderate gains.
Analysts’ ratings on Fiserv have been mostly positive, with only one analyst giving a “sell” rating among the numerous “hold” and “buy” ratings. Overall, Bloomberg.com data reveals a consensus rating of “Moderate Buy,” with a consensus price target of $133.70.
In recent news related to Fiserv, Chief Operating Officer Guy Chiarello sold 8,000 shares of stock at an average price of $121.69 on May 1st, resulting in a transaction worth approximately $973,520. Following this transaction, Chiarello now possesses 195,356 shares—a value of approximately $23,772,871.64.
On May 5th, Chief Financial Officer Robert W. Hau sold 8,500 shares of Fiserv stock at an average price of $119.33 per share—amounting to
