As of its most recent filing with the Securities and Exchange Commission, Citigroup Inc. has cut its holdings in ACI Worldwide, Inc. (NASDAQ:ACIW) by 20%, owning only 68,838 shares of the technology company’s stock after selling 17,189 shares during the period – a decision that may have perplexed investors and analysts alike. ACI Worldwide engages in the development and installation of software products and solutions, primarily focused on real-time electronic payments, catering to customers who manage their software on-site through its ACI on Premise segment or those who use its cloud-based services through its ACI on Demand offering.
While TheStreet downgraded ACI Worldwide from a “b-” rating to a “c” rating in early May, StockNews.com recently initiated coverage with a “hold” rating; however, Canaccord Genuity Group remains bullish with a “buy” rating and $40 price target. In contrast, DA Davidson raised their price objective to $34 from $29 while Stephens’ target price for the same period grew from $27 to $31. At present, data from Bloomberg.com indicates that two equity research analysts are holding the stock at hold while two give it a buy rating with an average consensus target price of $32.67.
This shift saw Citigroup’s holdings go down by 20%, indicating that it may be significant news for investors looking to purchase or already invested in this technology company. However, several factors could be behind this move as there are no disclosed reasons as yet for why Citigroup chose to sell such large numbers of shares amid market volatility caused by macroeconomic headwinds like inflationary pressures.
ACI Worldwide faces competition from established names like PayPal Holdings, Mastercard Incorporated, Visa Inc., Jack Henry & Associates Inc., Fidelity National Information Services Inc., TSYS Merchant Solutions LLC., First Data Corporation, Western Union Company MoneyGram International Inc., and a host of other fintechs who offer similar services.
ACI Worldwide’s long-term aspirations to help transform the digital payments landscape by being at the forefront of blockchain, distributed ledger technology (DLT), and emerging digital payment mediums while being committed to its growth through strategic partnerships have been successful. And despite Citigroup’s move to sell off its shares, it is noteworthy that ACI Worldwide gained recognition as one of Fintech Magazine’s Top 10 payment gateway solutions providers in 2021 – an accomplishment that may further fortify its position in the industry.
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ACI Worldwide Gains Popularity Among Institutional Investors
ACI Worldwide, Inc. has become increasingly popular among hedge funds and other institutional investors in recent months. According to a report released on May 28th, several hedge funds have bought and sold shares of the technology company. American Century Companies Inc. became one of the largest investors by increasing its position in ACI Worldwide by 19.6% during the first quarter last year. PNC Financial Services Group Inc., Natixis Advisors L.P., Bank of Montreal Can, and Rhumbline Advisers also lifted their stake in the company.
ACI Worldwide is primarily focused on facilitating real-time electronic payments with its software products and solutions. It operates through two segments – ACI on Premise and ACI on Demand – that serve customers who manage their software on site.
The firm’s market capitalization stands at $2.55 billion, with a P/E ratio of 28.41 and a beta value of 1.11 as at May 28th this year when it opened at $23.58 per share. Its fifty day moving average stands at $25.19 while its 200-day moving average is $24.59. With insiders owning just 1.30% of the company’s stock, CTO Ram Kumar Puppala sold 14,070 shares last Wednesday for a total value of $341,619.
ACI Worldwide announced first-quarter earnings data on March 1st which showed it earned $0.95 per share ($451 million) for the quarter with return-on-equity standing at an impressive rate of 10%. Research analysts predict that the technology company is likely to post earnings per share (EPS) worth approximately $1.86 within the current fiscal year.
All in all, ACI Worldwide continues to grow despite economic challenges facing corporations globally due to emerging technologies aimed at facilitating payment systems that are efficient across borders all thanks to their innovative software solutions designed primarily to cater for real time electronic payments.
