Stock Traders Buy Large Volume of Call Options on Shift4 Payments (NYSE:FOUR)

Shift4 Payments, Inc. (NYSE:FOUR) was the recipient of some unusual options trading activity on Wednesday. Stock traders purchased 8,421 call options on the company. This represents an increase of approximately 822% compared to the typical daily volume of 913 call options.

FOUR has been the topic of several research reports. Credit Suisse Group boosted their price objective on shares of Shift4 Payments from $85.00 to $100.00 and gave the stock an “outperform” rating in a research note on Friday, August 6th. Royal Bank of Canada boosted their price objective on shares of Shift4 Payments from $95.00 to $110.00 and gave the stock an “outperform” rating in a research note on Friday, August 6th. Finally, Zacks Investment Research upgraded shares of Shift4 Payments from a “hold” rating to a “buy” rating and set a $98.00 target price on the stock in a research note on Friday, August 6th. Two analysts have rated the stock with a hold rating and eight have given a buy rating to the company’s stock. According to MarketBeat, Shift4 Payments currently has a consensus rating of “Buy” and a consensus target price of $90.30.

In related news, major shareholder Searchlight Capital Partners I sold 4,250,000 shares of the business’s stock in a transaction dated Monday, August 9th. The shares were sold at an average price of $83.75, for a total transaction of $355,937,500.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Jordan Frankel sold 5,000 shares of the business’s stock in a transaction dated Thursday, July 15th. The shares were sold at an average price of $91.94, for a total transaction of $459,700.00. The disclosure for this sale can be found here. Insiders sold 4,272,000 shares of company stock worth $358,057,950 in the last 90 days. Corporate insiders own 38.03% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Harbor Investment Advisory LLC purchased a new stake in Shift4 Payments during the second quarter valued at approximately $40,000. Focused Wealth Management Inc purchased a new stake in Shift4 Payments during the second quarter valued at approximately $56,000. Covington Capital Management increased its holdings in Shift4 Payments by 328.6% during the second quarter. Covington Capital Management now owns 750 shares of the company’s stock valued at $70,000 after buying an additional 575 shares during the last quarter. SG3 Management LLC purchased a new stake in Shift4 Payments during the second quarter valued at approximately $70,000. Finally, US Bancorp DE increased its holdings in Shift4 Payments by 747.8% during the second quarter. US Bancorp DE now owns 958 shares of the company’s stock valued at $90,000 after buying an additional 845 shares during the last quarter. 56.37% of the stock is owned by hedge funds and other institutional investors.

Shares of NYSE FOUR traded up $0.06 during midday trading on Wednesday, hitting $77.63. The stock had a trading volume of 54,227 shares, compared to its average volume of 970,361. The business’s 50 day moving average is $86.68 and its 200-day moving average is $89.70. The company has a market cap of $6.44 billion, a P/E ratio of -79.97 and a beta of 2.38. Shift4 Payments has a 52 week low of $43.29 and a 52 week high of $104.11. The company has a quick ratio of 5.42, a current ratio of 5.43 and a debt-to-equity ratio of 2.50.

Shift4 Payments (NYSE:FOUR) last released its quarterly earnings data on Thursday, August 5th. The company reported $0.22 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.05. Shift4 Payments had a negative net margin of 4.63% and a negative return on equity of 6.30%. The firm had revenue of $351.00 million during the quarter, compared to analysts’ expectations of $313.76 million. During the same period in the previous year, the company earned ($0.03) earnings per share. The firm’s quarterly revenue was up 147.5% on a year-over-year basis. As a group, analysts expect that Shift4 Payments will post 0.23 EPS for the current fiscal year.

About Shift4 Payments

Shift4 Payments, Inc provides integrated payment processing and technology solutions in the United States. Its payments platform provides omni-channel card acceptance and processing solutions, including end-to-end payment processing for various payment types; merchant acquiring; proprietary omni-channel gateway; complementary software integrations; integrated and mobile point-of-sale (POS) solutions; security and risk management solutions; and reporting and analytical tools, as well as tokenization, risk management/underwriting, payment device and chargeback management, fraud prevention, and gift card solutions.

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