TSYS (TSS) Raised to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of TSYS (NYSE:TSS) from a hold rating to a buy rating in a report published on Thursday. The firm currently has $99.00 price objective on the credit services provider’s stock.
According to Zacks, “Shares of Total System have outperformed its industry in a year’s time. Its strong organic revenue growth reflects its exceptional execution of strategic goals. The company’s acquisition strategy complements its organic growth. Its favorable 2018 guidance raises our optimism on the stock. The company has strengthened its capital position by reducing debt. Resumption of share buyback is another positive. Nevertheless, exposure to foreign exchange volatility, investment expenses, new CFPB rules, adoption of new accounting standard might weigh on the margins in the coming quarters. It is set to release its first quarter results on Apr 24. A Zacks Rank #2 combined with Earnings ESP of +0.51% makes us reasonably confident of earnings beat.”
A number of other equities research analysts have also issued reports on TSS. Nomura increased their price target on TSYS from $87.00 to $95.00 and gave the stock a buy rating in a research note on Wednesday, January 24th. Royal Bank of Canada reiterated a buy rating and issued a $90.00 price target on shares of TSYS in a research note on Thursday, January 4th. Robert W. Baird increased their price objective on shares of TSYS from $90.00 to $94.00 and gave the company an outperform rating in a report on Wednesday, January 24th. Barclays increased their price objective on shares of TSYS from $90.00 to $96.00 and gave the company an overweight rating in a report on Tuesday, February 6th. Finally, KeyCorp reissued a buy rating and set a $92.00 price objective (up previously from $85.00) on shares of TSYS in a report on Wednesday, January 24th. One research analyst has rated the stock with a sell rating, ten have given a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the company. The stock presently has a consensus rating of Buy and a consensus target price of $84.21.
TSYS (NYSE:TSS) last issued its quarterly earnings results on Tuesday, January 23rd. The credit services provider reported $0.82 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.79 by $0.03. TSYS had a return on equity of 26.50% and a net margin of 11.90%. The business had revenue of $870.61 million during the quarter, compared to analyst estimates of $848.20 million. During the same quarter in the prior year, the business posted $0.71 EPS. TSYS’s revenue for the quarter was up 10.8% compared to the same quarter last year. analysts expect that TSYS will post 3.96 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Monday, April 2nd. Shareholders of record on Thursday, March 22nd were paid a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 0.60%. The ex-dividend date of this dividend was Wednesday, March 21st. TSYS’s payout ratio is currently 16.15%.
In other TSYS news, Director Richard W. Ussery sold 7,546 shares of the firm’s stock in a transaction dated Friday, January 26th. The shares were sold at an average price of $88.29, for a total value of $666,236.34. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Patricia A. Watson sold 2,274 shares of the firm’s stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $83.35, for a total transaction of $189,537.90. Following the completion of the sale, the executive vice president now directly owns 27,253 shares of the company’s stock, valued at approximately $2,271,537.55. The disclosure for this sale can be found here. In the last three months, insiders sold 692,200 shares of company stock valued at $59,978,168. 2.40% of the stock is owned by insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the business. Acadian Asset Management LLC bought a new stake in TSYS in the fourth quarter worth about $109,000. Tower Research Capital LLC TRC lifted its stake in TSYS by 463.9% in the fourth quarter. Tower Research Capital LLC TRC now owns 2,295 shares of the credit services provider’s stock worth $181,000 after purchasing an additional 1,888 shares during the last quarter. Two Sigma Securities LLC bought a new stake in TSYS in the fourth quarter worth about $203,000. Cahaba Wealth Management Inc. bought a new stake in TSYS in the fourth quarter worth about $208,000. Finally, PHH Investments Ltd. bought a new stake in TSYS in the fourth quarter worth about $209,000. 76.56% of the stock is owned by institutional investors and hedge funds.
Total System Services, Inc provides payment processing, merchant, and related payment services to financial and nonfinancial institutions worldwide. The company operates through three segments: Merchant Solutions, Issuer Solutions, and Netspend. It offers general purpose reloadable prepaid and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers and businesses.
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