Total System Services (TSS) Rating Increased to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Total System Services (NYSE:TSS) from a hold rating to a buy rating in a research note published on Thursday morning. The brokerage currently has $91.00 target price on the credit services provider’s stock.
According to Zacks, “Shares of Total System have outperformed its industry in last year. The company is set to benefit from its robust NetSpend business, while the TransFirst acquisition will support its merchant acquiring business. Numerous acquisitions made by the company have contributed to overall growth. Following a strong performance in the first nine months of the year, the company raised its 2017 earnings guidance, which instills investors' confidence. Total System has strengthened its capital position by reducing debt to its targeted range. Resumption of share buyback is another positive. The stock has seen the Zacks Consensus Estimate for 2018 earnings being revised 1.7% upward over the last 90 days. Nevertheless, exposure to foreign exchange volatility and investment expenses might weigh on the margins in the coming quarters.”
A number of other equities research analysts have also commented on TSS. Evercore ISI raised shares of Total System Services from an in-line rating to an outperform rating in a report on Wednesday, January 10th. Stephens reissued a buy rating and set a $88.00 price objective on shares of Total System Services in a report on Wednesday, January 10th. Robert W. Baird reissued a buy rating on shares of Total System Services in a report on Tuesday, September 26th. Royal Bank of Canada restated a buy rating and set a $90.00 target price on shares of Total System Services in a research report on Thursday, January 4th. Finally, Citigroup upped their target price on shares of Total System Services from $71.00 to $78.00 and gave the company a buy rating in a research report on Wednesday, October 25th. One equities research analyst has rated the stock with a sell rating, twelve have issued a hold rating, sixteen have given a buy rating and one has assigned a strong buy rating to the stock. The company presently has an average rating of Buy and an average target price of $74.04.
Total System Services (NYSE:TSS) last issued its quarterly earnings data on Tuesday, October 24th. The credit services provider reported $0.88 EPS for the quarter, topping analysts’ consensus estimates of $0.81 by $0.07. Total System Services had a net margin of 8.73% and a return on equity of 26.25%. The firm had revenue of $852.80 million for the quarter, compared to analyst estimates of $842.30 million. During the same quarter in the prior year, the firm earned $0.71 EPS. The company’s revenue was up 8.0% on a year-over-year basis. equities analysts forecast that Total System Services will post 3.2 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Tuesday, January 2nd. Investors of record on Thursday, December 21st were given a $0.13 dividend. The ex-dividend date of this dividend was Wednesday, December 20th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.63%. Total System Services’s dividend payout ratio is 23.11%.
In related news, EVP Patricia A. Watson sold 23,608 shares of the stock in a transaction that occurred on Thursday, November 16th. The shares were sold at an average price of $74.01, for a total value of $1,747,228.08. Following the sale, the executive vice president now directly owns 21,112 shares in the company, valued at approximately $1,562,499.12. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.60% of the company’s stock.
Several large investors have recently made changes to their positions in the stock. CHURCHILL MANAGEMENT Corp raised its position in shares of Total System Services by 3.2% in the 4th quarter. CHURCHILL MANAGEMENT Corp now owns 145,740 shares of the credit services provider’s stock valued at $11,527,000 after acquiring an additional 4,543 shares during the period. Sit Investment Associates Inc. raised its position in shares of Total System Services by 81.0% in the 4th quarter. Sit Investment Associates Inc. now owns 32,377 shares of the credit services provider’s stock valued at $2,561,000 after acquiring an additional 14,486 shares during the period. Parametric Portfolio Associates LLC raised its position in shares of Total System Services by 4.7% in the 3rd quarter. Parametric Portfolio Associates LLC now owns 199,363 shares of the credit services provider’s stock valued at $13,058,000 after acquiring an additional 8,868 shares during the period. Visionary Asset Management Inc. acquired a new stake in Total System Services during the 3rd quarter worth approximately $399,000. Finally, IFM Investors Pty Ltd acquired a new stake in Total System Services during the 3rd quarter worth approximately $377,000. Institutional investors and hedge funds own 75.93% of the company’s stock.
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Total System Services Company Profile
Total System Services, Inc (TSYS) is a payment solutions provider that provides payment processing services, merchant services and related payment services to financial and non-financial institutions. The Company’s segments include North America Services, Merchant Services, NetSpend and International Services.
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