Zacks Investment Research Downgrades Fidelity National Information Services, Inc. (NYSE:FIS) to Hold

Fidelity National Information Services, Inc. (NYSE:FIS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday, October 16th.

According to Zacks, “Shares of Fidelity National Information Services have underperformed the industry, year to date. Estimates have been stable lately ahead of the company’s Q3 earnings release. Fidelity displays an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. The company remains well positioned for growth backed by its attractive core business with a recurring revenue model, digitization, diversified product portfolio, benefits from strategic acquisitions, as well as several ongoing strategic initiatives. Moreover, cost-control efforts are also commendable. It anticipates 2017 adjusted earnings per share in the band of $4.22-$4.32, reflecting an increase of 10-13% year over year. We remain cautious owing to several issues, including the ongoing consolidation in the banking sector and stiff competition. Moreover, elevated debt level is also a concern.”



Several other equities research analysts have also recently issued reports on the stock. Cowen and Company reissued a “buy” rating and issued a $97.00 price objective on shares of Fidelity National Information Services in a research report on Thursday, August 3rd. Robert W. Baird reiterated an “outperform” rating and set a $108.00 price objective (up previously from $102.00) on shares of Fidelity National Information Services in a research note on Tuesday, October 10th. BMO Capital Markets upped their price target on shares of Fidelity National Information Services from $92.00 to $104.00 and gave the company an “outperform” rating in a research note on Thursday, August 3rd. Stephens restated a “positive” rating and set a $101.00 price target (up previously from $93.00) on shares of Fidelity National Information Services in a research note on Thursday, August 3rd. Finally, Barclays PLC restated an “overweight” rating and set a $102.00 price target (up previously from $94.00) on shares of Fidelity National Information Services in a research note on Wednesday, August 9th. Four investment analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Fidelity National Information Services currently has an average rating of “Buy” and an average price target of $95.20.

Fidelity National Information Services (NYSE FIS) opened at 95.94 on Monday. Fidelity National Information Services has a 52 week low of $73.25 and a 52 week high of $96.36. The stock has a market cap of $31.89 billion, a P/E ratio of 48.09 and a beta of 0.85. The stock has a 50 day moving average price of $93.70 and a 200-day moving average price of $88.48.

Fidelity National Information Services (NYSE:FIS) last announced its quarterly earnings data on Wednesday, August 2nd. The information technology services provider reported $1.02 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.97 by $0.05. Fidelity National Information Services had a net margin of 7.08% and a return on equity of 13.49%. The firm had revenue of $2.34 billion for the quarter, compared to the consensus estimate of $2.34 billion. During the same period last year, the firm earned $0.90 EPS. The company’s revenue was up 1.6% on a year-over-year basis. On average, equities analysts anticipate that Fidelity National Information Services will post $4.29 EPS for the current fiscal year.

Fidelity National Information Services declared that its board has initiated a stock buyback plan on Wednesday, August 2nd that authorizes the company to buyback $4.00 billion in outstanding shares. This buyback authorization authorizes the information technology services provider to purchase up to 13.3% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

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In other Fidelity National Information Services news, Director James B. Stallings, Jr. sold 2,181 shares of the stock in a transaction on Friday, August 4th. The shares were sold at an average price of $90.32, for a total transaction of $196,987.92. Following the transaction, the director now directly owns 12,317 shares of the company’s stock, valued at $1,112,471.44. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Frank R. Martire sold 400,000 shares of the stock in a transaction on Monday, August 7th. The shares were sold at an average price of $90.34, for a total transaction of $36,136,000.00. Following the transaction, the director now directly owns 202,517 shares in the company, valued at $18,295,385.78. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 520,549 shares of company stock worth $47,224,679. Insiders own 2.66% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the company. Guardian Life Insurance Co. of America raised its position in shares of Fidelity National Information Services by 0.7% in the first quarter. Guardian Life Insurance Co. of America now owns 1,266 shares of the information technology services provider’s stock valued at $101,000 after buying an additional 9 shares during the last quarter. WFG Advisors LP raised its position in shares of Fidelity National Information Services by 99.8% in the second quarter. WFG Advisors LP now owns 1,187 shares of the information technology services provider’s stock valued at $101,000 after buying an additional 593 shares during the last quarter. Motco raised its position in shares of Fidelity National Information Services by 12.3% in the second quarter. Motco now owns 1,192 shares of the information technology services provider’s stock valued at $102,000 after buying an additional 131 shares during the last quarter. BB&T Investment Services Inc. acquired a new stake in shares of Fidelity National Information Services in the second quarter valued at about $103,000. Finally, IFP Advisors Inc raised its position in shares of Fidelity National Information Services by 6.8% in the second quarter. IFP Advisors Inc now owns 1,317 shares of the information technology services provider’s stock valued at $112,000 after buying an additional 84 shares during the last quarter. Institutional investors and hedge funds own 86.63% of the company’s stock.

About Fidelity National Information Services

Fidelity National Information Services, Inc (FIS) is a financial services technology company. The Company operates through three segments: Integrated Financial Solutions (IFS), Global Financial Solutions (GFS), and Corporate and Other. The IFS segment is focused on serving the North American regional and community bank and savings institutions market for transaction and account processing, payment solutions, channel solutions, digital channels, risk and compliance solutions, and services.

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