First Trust Advisors LP, a leading investment management company, announced on May 17, 2023, that it had increased its position in Fidelity National Information Services (NYSE:FIS) by 25.4% during the fourth financial quarter. This has piqued investor interest in the information technology services provider as this recent disclosure with the Securities & Exchange Commission shows that First Trust Advisors LP owned $79,156,000 or 0.20% of Fidelity National Information Services worth.
Fidelity National Information Services recently released its earnings results for the first quarter of the year on April 27th at which time it reported an EPS (earnings per share) of $1.29 beating consensus estimates by $0.09. Its quarterly revenue was $3.51 billion, up compared to analysts’ expectations of $3.41 billion while Fidelity National Information Services’ revenue for the quarter was up .5% on a year-over-year basis with a negative net margin of 114.79% and a positive return on equity of 10.66%. As per evaluations from sell-side analysts combinedly forecast Fidelity National Information Services will contribute $5.95 EPS for this ongoing fiscal year.
This news has had a significant impact on equity research analysts covering shares of FIS with various price objectives by different research reports over time: Jefferies Financial Group reduced their price objective to $60 from previously estimated $65; Mizuho raised their price objective to $80 from previously targeted $78; TheStreet downgraded shares from C rating to D rating ; Raymond James valued shares from Strong Buy rate $86 to Strong Buy rate at$83 and Credit Suisse Group reduced their price objective to USD70$ from previously evaluated USD75$, one investment analyst has rated the stock negatively or Sell rating and ten have held given hold rating whereas twelve stocks experienced positive remarks as buy ratings amongst them one even issuing a strong buy rating to the information services provider.
Bloomberg.com reported that Fidelity National Information Services presently has a consensus rating of “Moderate Buy” and an average target price of $89.30, demonstrating that investors remain positive about the future prospects of the company.
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Growing Institutional Investor Interest in Fidelity National Information Services Despite Stock Performance Concerns
Fidelity National Information Services (FIS), a popular information technology services provider, is becoming increasingly attractive for institutional investors and hedge funds, according to recent data. Laurel Wealth Advisors has increased its stake in the company by 1.5% during the first quarter of this year, now owning $7,529 worth of FIS shares. EP Wealth Advisors LLC also raised stakes by 3.8%, while Brown Brothers Harriman & Co. came through with an increase in holdings by an impressive 83.3%. Meanwhile, Fiduciary Planning LLC lifted its position in FIS by 1.5%, and Boenning & Scattergood Inc raised their position by almost 4%.
At present, hedge funds and other institutional investors collectively own over 90% of FIS’ stock. Despite this significant interest from institutional investors, though, there are some concerns about the performance of the company’s stock in recent times. Its one year low is down to $48.57 and high to $106.65; it opened at $54.91 on May 17th.
Several equities research analysts have shared their views on FIS’ stocks recently as well. While one analyst gave it a “sell rating”, ten suggested holding onto it, with twelve more opting to buy it and one recommending a strong buy rating.
Financial news website Bloomberg.com reported that Fidelity National Information Services presently has a consensus rating of “Moderate Buy” and an average target price of $89.30 with Credit Suisse Group reducing their price objective from $75 to $70.
On June 23rd, FIS announced that it would pay out a quarterly dividend on Friday that same week for shareholders who were recorded on Friday June 9th – with each shareholder receiving $0.52 – which translated into an annualized dividend of up to $2.08 per share and a yield of almost 4%.
Lastly, there have been major changes within the company, related to insider trading. For instance, its CFO Erik D. Hoag sold around 5,658 shares of the company’s stock for a total transaction value of $361,433.04. Meanwhile, Jeffrey A. Goldstein became the director to acquire 958 shares priced at an average rate of $57.24 each.
However, it is safe to say that despite fluctations in recent months with both external and internal business operations; progress is ongoing to secure long term stability for FIS.
