Total System Services (TSS) Downgraded by Zacks Investment Research to Hold
Zacks Investment Research lowered shares of Total System Services (NYSE:TSS) from a buy rating to a hold rating in a report issued on Thursday.
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. Numerous acquisitions made by the company have contributed to overall growth. Following a strong performance in the first nine months of the year, the company raised its 2017 earnings guidance, which instills investors' confidence. Total System has strengthened its capital position by reducing debt to its targeted range. Resumption of share buyback is another positive. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 1.8% upward over the last 60 days. Nevertheless, exposure to foreign exchange volatility and investment expenses might weigh on the margins in the coming quarters.”
Several other research analysts also recently commented on TSS. BidaskClub raised Total System Services from a buy rating to a strong-buy rating in a research note on Friday, August 18th. Royal Bank of Canada started coverage on Total System Services in a research note on Monday, August 28th. They set an outperform rating and a $75.00 target price for the company. KeyCorp reaffirmed an overweight rating on shares of Total System Services in a research note on Thursday, August 31st. Cowen reaffirmed a buy rating and issued a $67.00 price objective on shares of Total System Services in a research note on Thursday, September 7th. Finally, Bank of America started coverage on Total System Services in a research note on Tuesday, September 12th. They issued an underperform rating and a $64.00 price objective for the company. One analyst has rated the stock with a sell rating, ten have given a hold rating, sixteen have given a buy rating and one has issued a strong buy rating to the company’s stock. The company has a consensus rating of Buy and an average price target of $71.16.
Total System Services (NYSE:TSS) last issued its earnings results on Tuesday, October 24th. The credit services provider reported $0.88 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.81 by $0.07. The firm had revenue of $852.80 million during the quarter, compared to the consensus estimate of $842.30 million. Total System Services had a return on equity of 26.25% and a net margin of 8.73%. The business’s quarterly revenue was up 8.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.71 earnings per share. analysts anticipate that Total System Services will post 3.2 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, January 2nd. Shareholders of record on Thursday, December 21st will be issued a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.68%. The ex-dividend date is Wednesday, December 20th. Total System Services’s payout ratio is 23.11%.
In other Total System Services news, EVP Patricia A. Watson sold 23,608 shares of the stock in a transaction that occurred on Thursday, November 16th. The stock was sold at an average price of $74.01, for a total transaction of $1,747,228.08. Following the transaction, the executive vice president now directly owns 21,112 shares in the company, valued at approximately $1,562,499.12. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 2.60% of the stock is currently owned by corporate insiders.
Large investors have recently modified their holdings of the company. Bronfman E.L. Rothschild L.P. raised its position in shares of Total System Services by 13.2% during the second quarter. Bronfman E.L. Rothschild L.P. now owns 1,959 shares of the credit services provider’s stock worth $114,000 after purchasing an additional 228 shares during the period. Acrospire Investment Management LLC raised its position in Total System Services by 122.2% in the 2nd quarter. Acrospire Investment Management LLC now owns 2,000 shares of the credit services provider’s stock valued at $117,000 after buying an additional 1,100 shares during the last quarter. TLP Group LLC purchased a new stake in Total System Services in the 2nd quarter valued at $122,000. Parkwood LLC purchased a new stake in Total System Services in the 3rd quarter valued at $200,000. Finally, Reliance Trust Co. purchased a new stake in Total System Services in the 3rd quarter valued at $211,000. 76.09% of the stock is currently owned by institutional investors.
Total System Services Company Profile
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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