Total System Services, Inc. (TSS) Cut to “Hold” at Zacks Investment Research
Zacks Investment Research downgraded shares of Total System Services, Inc. (NYSE:TSS) from a buy rating to a hold rating in a research report released on Monday morning.
According to Zacks, “Shares of Total System have outperformed its industry year to date. The company is set to benefit from its robust NetSpend business, while the TransFirst acquisition will support its merchant acquiring business. A number of acquisitions made by it have contributed to overall growth. Its second-quarter earnings beat the Zacks Consensus Estimate and grew year over year. Following strong performance in first-half of the year, the company pulled up its 2017 earnings guidance, which instills investors' confidence. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 1.5% upward over the last 60 days. However, the company suffers from stiff competition and huge cash outlays on acquisition and investments. Further, the new rules aimed to boost consumer protections for prepaid accounts and cards are likely to hurt the company's top line, with 2018 revenue to be down by about $30–$40 million. “
Other research analysts have also recently issued reports about the stock. Keefe, Bruyette & Woods reissued a buy rating on shares of Total System Services in a report on Thursday, July 27th. Cowen and Company reissued a buy rating and set a $67.00 price target on shares of Total System Services in a report on Thursday, September 7th. Wedbush started coverage on shares of Total System Services in a report on Thursday, August 3rd. They set an outperform rating and a $72.00 price target for the company. BMO Capital Markets reissued an outperform rating and set a $67.00 price target (up from $64.00) on shares of Total System Services in a report on Thursday, June 22nd. Finally, Stifel Nicolaus reissued a buy rating and set a $69.00 price target (up from $67.00) on shares of Total System Services in a report on Wednesday, July 26th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the company. Total System Services currently has a consensus rating of Buy and an average price target of $65.15.
Total System Services (NYSE TSS) opened at 67.45 on Monday. The firm’s 50 day moving average price is $66.32 and its 200-day moving average price is $59.51. The stock has a market cap of $12.43 billion, a price-to-earnings ratio of 32.73 and a beta of 1.13. Total System Services has a 1-year low of $46.22 and a 1-year high of $70.62.
Total System Services (NYSE:TSS) last announced its earnings results on Tuesday, July 25th. The credit services provider reported $0.85 EPS for the quarter, beating analysts’ consensus estimates of $0.80 by $0.05. Total System Services had a net margin of 8.78% and a return on equity of 25.49%. The business had revenue of $844.07 million during the quarter, compared to analysts’ expectations of $842.57 million. During the same period in the prior year, the company earned $0.74 earnings per share. The business’s revenue was up 6.2% compared to the same quarter last year. On average, equities analysts anticipate that Total System Services will post $3.28 earnings per share for the current year.
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The company also recently announced a quarterly dividend, which will be paid on Monday, October 2nd. Investors of record on Friday, September 29th will be given a dividend of $0.13 per share. The ex-dividend date of this dividend is Wednesday, September 20th. This represents a $0.52 dividend on an annualized basis and a yield of 0.77%. This is a positive change from Total System Services’s previous quarterly dividend of $0.10. Total System Services’s dividend payout ratio (DPR) is 19.51%.
In related news, EVP G Sanders Griffith III sold 18,472 shares of the firm’s stock in a transaction that occurred on Friday, July 28th. The shares were sold at an average price of $63.25, for a total transaction of $1,168,354.00. Following the sale, the executive vice president now owns 187,684 shares in the company, valued at $11,871,013. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Paul M. Todd sold 4,057 shares of the stock in a transaction that occurred on Monday, August 14th. The stock was sold at an average price of $63.50, for a total transaction of $257,619.50. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 243,503 shares of company stock worth $15,490,969. 2.60% of the stock is owned by company insiders.
A number of large investors have recently bought and sold shares of the business. Lord Abbett & CO. LLC raised its stake in Total System Services by 480.0% during the second quarter. Lord Abbett & CO. LLC now owns 743,682 shares of the credit services provider’s stock worth $43,319,000 after purchasing an additional 615,470 shares during the period. Sentry Investment Management LLC raised its stake in Total System Services by 0.4% during the second quarter. Sentry Investment Management LLC now owns 11,216 shares of the credit services provider’s stock worth $653,000 after purchasing an additional 44 shares during the period. Toronto Dominion Bank raised its stake in Total System Services by 25.9% during the second quarter. Toronto Dominion Bank now owns 56,099 shares of the credit services provider’s stock worth $3,267,000 after purchasing an additional 11,535 shares during the period. Oak Associates Ltd. OH raised its stake in Total System Services by 36.2% during the second quarter. Oak Associates Ltd. OH now owns 162,110 shares of the credit services provider’s stock worth $9,443,000 after purchasing an additional 43,100 shares during the period. Finally, Dynamic Technology Lab Private Ltd purchased a new position in Total System Services during the second quarter worth approximately $304,000. 76.13% of the stock is currently owned by institutional investors.
About Total System Services
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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