Fidelity National Information Servcs (NYSE:FIS) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research downgraded shares of Fidelity National Information Servcs (NYSE:FIS) from a buy rating to a hold rating in a research note issued to investors on Monday, August 6th.

According to Zacks, “Shares of Fidelity National Information Services have underperformed the industry over the past six months. Also, the company displays an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters. Second-quarter results reflect lower expenses, partially offset by decline in revenues. 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. Following the latest earnings release, the company raised expectations for 2018 adjusted earnings per share to $5.18-$5.34, reflecting an increase of about 21-25% year over year. However, the company remains exposed to significant competition from new entrants.”

Several other equities research analysts have also issued reports on the stock. Cantor Fitzgerald raised their price target on shares of Fidelity National Information Servcs to $117.00 and gave the stock an overweight rating in a research note on Wednesday, August 1st. ValuEngine lowered shares of Fidelity National Information Servcs from a buy rating to a hold rating in a research note on Tuesday, July 31st. Wolfe Research began coverage on shares of Fidelity National Information Servcs in a report on Tuesday, July 17th. They issued an outperform rating for the company. Oppenheimer raised their price objective on shares of Fidelity National Information Servcs from $105.00 to $118.00 and gave the stock an outperform rating in a report on Wednesday, May 9th. Finally, Credit Suisse Group raised their price objective on shares of Fidelity National Information Servcs from $113.00 to $115.00 and gave the stock an outperform rating in a report on Wednesday, May 9th. Three equities research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. The stock currently has a consensus rating of Buy and an average price target of $114.55.

NYSE:FIS traded up $0.47 on Monday, hitting $108.17. The stock had a trading volume of 843,100 shares, compared to its average volume of 1,575,559. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.38 and a current ratio of 1.38. The firm has a market cap of $35.38 billion, a price-to-earnings ratio of 24.38, a price-to-earnings-growth ratio of 1.71 and a beta of 0.89. Fidelity National Information Servcs has a 1 year low of $89.31 and a 1 year high of $109.95.

Fidelity National Information Servcs (NYSE:FIS) last issued its quarterly earnings results on Tuesday, July 31st. The information technology services provider reported $1.23 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.21 by $0.02. Fidelity National Information Servcs had a net margin of 16.59% and a return on equity of 15.42%. The company had revenue of $2.11 billion during the quarter, compared to analyst estimates of $2.12 billion. During the same quarter last year, the business posted $1.04 EPS. Fidelity National Information Servcs’s quarterly revenue was down 6.7% compared to the same quarter last year. sell-side analysts forecast that Fidelity National Information Servcs will post 5.23 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, September 28th. Shareholders of record on Friday, September 14th will be issued a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 1.18%. The ex-dividend date is Thursday, September 13th. Fidelity National Information Servcs’s payout ratio is 28.96%.

In other Fidelity National Information Servcs news, Director Keith W. Hughes sold 5,835 shares of the firm’s stock in a transaction on Wednesday, June 13th. The shares were sold at an average price of $106.87, for a total value of $623,586.45. Following the completion of the transaction, the director now directly owns 29,380 shares of the company’s stock, valued at approximately $3,139,840.60. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP Lenore D. Williams sold 4,285 shares of the firm’s stock in a transaction on Wednesday, August 8th. The shares were sold at an average price of $106.00, for a total transaction of $454,210.00. Following the sale, the executive vice president now owns 4,999 shares in the company, valued at approximately $529,894. The disclosure for this sale can be found here. Over the last three months, insiders sold 29,542 shares of company stock valued at $3,145,184. Insiders own 2.08% of the company’s stock.

Institutional investors have recently bought and sold shares of the company. Rampart Investment Management Company LLC raised its position in Fidelity National Information Servcs by 145.3% in the 1st quarter. Rampart Investment Management Company LLC now owns 10,994 shares of the information technology services provider’s stock worth $1,059,000 after purchasing an additional 6,512 shares during the period. WealthTrust Fairport LLC raised its position in Fidelity National Information Servcs by 1.3% in the 1st quarter. WealthTrust Fairport LLC now owns 70,094 shares of the information technology services provider’s stock worth $6,750,000 after purchasing an additional 883 shares during the period. Mount Yale Investment Advisors LLC purchased a new position in Fidelity National Information Servcs in the 1st quarter worth $261,000. Cerebellum GP LLC raised its position in Fidelity National Information Servcs by 133.6% in the 2nd quarter. Cerebellum GP LLC now owns 1,696 shares of the information technology services provider’s stock worth $180,000 after purchasing an additional 970 shares during the period. Finally, CenturyLink Investment Management Co purchased a new position in Fidelity National Information Servcs in the 2nd quarter worth $1,665,000. Hedge funds and other institutional investors own 88.07% of the company’s stock.

About Fidelity National Information Servcs

Fidelity National Information Services, Inc operates as a financial services technology company in the United States and internationally. It operates through Integrated Financial Solutions and Global Financial Solutions segments. The Integrated Financial Solutions segment offers core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail solutions; corporate liquidity and wealth management services; item processing and output services; government payments solutions; and e-payment solutions.

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