Global Payments (NYSE:GPN) Shares Gap Up – Should You Buy?

Global Payments Inc. (NYSE:GPN)’s share price gapped up before the market opened on Monday . The stock had previously closed at $77.82, but opened at $80.90. Global Payments shares last traded at $79.0550, with a volume of 616,028 shares traded.

Analysts Set New Price Targets

A number of research firms have commented on GPN. Keefe, Bruyette & Woods decreased their target price on shares of Global Payments from $90.00 to $76.00 and set a “market perform” rating on the stock in a research note on Tuesday, April 7th. Wall Street Zen cut Global Payments from a “buy” rating to a “hold” rating in a report on Saturday, May 30th. Citigroup dropped their price objective on Global Payments from $110.00 to $90.00 and set a “buy” rating for the company in a research note on Thursday, April 2nd. BMO Capital Markets started coverage on shares of Global Payments in a research report on Tuesday, April 21st. They set a “market perform” rating and a $76.00 target price for the company. Finally, BTIG Research reaffirmed a “neutral” rating on shares of Global Payments in a report on Tuesday, June 9th. Four equities research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Global Payments currently has a consensus rating of “Hold” and a consensus target price of $83.33.

Global Payments Stock Down 2.8%

The company has a market cap of $21.89 billion, a PE ratio of -39.23, a price-to-earnings-growth ratio of 0.46 and a beta of 0.76. The company has a fifty day moving average of $71.56 and a two-hundred day moving average of $71.91. The company has a debt-to-equity ratio of 0.86, a quick ratio of 0.79 and a current ratio of 0.79.

Global Payments (NYSE:GPN) last issued its quarterly earnings results on Wednesday, May 6th. The business services provider reported $2.96 EPS for the quarter, beating the consensus estimate of $2.82 by $0.14. Global Payments had a negative net margin of 7.99% and a positive return on equity of 13.11%. The company had revenue of $2.86 billion for the quarter, compared to the consensus estimate of $2.81 billion. During the same period in the prior year, the firm posted $2.82 EPS. The firm’s revenue was up 63.1% compared to the same quarter last year. Global Payments has set its FY 2026 guidance at 13.800-14.000 EPS. As a group, analysts anticipate that Global Payments Inc. will post 13.82 earnings per share for the current fiscal year.

Global Payments Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Friday, June 12th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.2%. Global Payments’s dividend payout ratio is presently -49.02%.

Hedge Funds Weigh In On Global Payments

Hedge funds and other institutional investors have recently modified their holdings of the business. Westpac Banking Corp increased its position in Global Payments by 5,795.1% during the 4th quarter. Westpac Banking Corp now owns 57,182 shares of the business services provider’s stock valued at $4,426,000 after buying an additional 56,212 shares in the last quarter. LSV Asset Management grew its stake in shares of Global Payments by 30.8% during the fourth quarter. LSV Asset Management now owns 448,100 shares of the business services provider’s stock worth $34,683,000 after acquiring an additional 105,500 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Global Payments by 18.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,431,107 shares of the business services provider’s stock valued at $110,768,000 after acquiring an additional 227,317 shares in the last quarter. Pzena Investment Management LLC raised its position in shares of Global Payments by 4.6% in the 4th quarter. Pzena Investment Management LLC now owns 11,409,697 shares of the business services provider’s stock valued at $883,111,000 after purchasing an additional 500,887 shares during the last quarter. Finally, PFA Pension Forsikringsaktieselskab acquired a new stake in Global Payments in the 4th quarter worth approximately $22,847,000. 89.76% of the stock is currently owned by institutional investors.

Global Payments Company Profile

Global Payments Inc (NYSE: GPN) is a worldwide provider of payment technology and software solutions that enables commerce for merchants, issuers and enterprises. The company develops and operates payment processing networks, point-of-sale systems and cloud-based software that facilitate electronic transactions across in-store, online and mobile channels. Its services span merchant acquiring, payment gateway services, omnichannel commerce platforms, and solutions for recurring and subscription billing.

Global Payments offers a range of products and services including integrated payment terminals and point-of-sale software, e-commerce and gateway technologies, fraud prevention and tokenization tools, and business analytics and reporting.