Fiserv (NASDAQ:FISV) Hits New 12-Month Low After Analyst Downgrade

Fiserv, Inc. (NASDAQ:FISV) reached a new 52-week low during trading on Monday after B. Riley Financial lowered their price target on the stock from $66.00 to $51.00. B. Riley Financial currently has a neutral rating on the stock. Fiserv traded as low as $44.82 and last traded at $45.36, with a volume of 563031 shares trading hands. The stock had previously closed at $46.48.

Other analysts also recently issued reports about the stock. UBS Group set a $60.00 price objective on shares of Fiserv and gave the company a “neutral” rating in a report on Friday, August 7th. BMO Capital Markets restated a “market perform” rating and set a $55.00 target price (down from $60.00) on shares of Fiserv in a report on Wednesday, July 22nd. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $54.00 target price on shares of Fiserv in a research report on Friday, August 7th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $65.00 price target (down from $75.00) on shares of Fiserv in a research note on Friday, August 7th. Finally, BNP Paribas Exane cut shares of Fiserv from a “neutral” rating to an “underperform” rating and set a $46.00 price target on the stock. in a research report on Friday, June 5th. Six analysts have rated the stock with a Buy rating, twenty-five have given a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Fiserv currently has an average rating of “Hold” and a consensus target price of $73.70.

Insiders Place Their Bets

In other news, Director Lance Fritz bought 10,000 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were acquired at an average cost of $51.95 per share, for a total transaction of $519,500.00. Following the completion of the acquisition, the director owned 27,207 shares in the company, valued at approximately $1,413,403.65. This represents a 58.12% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.06% of the company’s stock.

More Fiserv News

Here are the key news stories impacting Fiserv this week:

• Positive Sentiment: Activist investor Jana Partners is urging Fiserv to accelerate planned cost reductions and adopt Palantir’s software. If implemented effectively, the measures could improve operating efficiency, margins and cash flow, potentially supporting the stock’s valuation. Activist Jana pushes Fiserv to accelerate cost cuts and tap Palantir
• Neutral Sentiment: One Seeking Alpha analysis argues that the market may be overreacting to a one-time decline, suggesting the selloff could create value if Fiserv’s longer-term fundamentals remain intact. Fiserv: The Market Is Overreacting To A One-Off Decline
• Negative Sentiment: Jana’s pressure also highlights investor dissatisfaction with Fiserv’s current strategy and performance. The activist reportedly wants the company to increase cost-cutting plans, raising execution risk and uncertainty about management’s response. FISV heads for worst month as Jana pushes deeper cost cuts
• Negative Sentiment: B. Riley lowered its Fiserv price target from $66 to $51 and maintained a neutral rating, reflecting reduced confidence in near-term growth and earnings potential. Although the revised target implies upside from the current level, the size of the cut is weighing on sentiment. Fiserv stock price target lowered at B. Riley Financial
• Negative Sentiment: Another analysis says Fiserv’s low valuation alone is not sufficient to justify buying the stock because a muted growth outlook could reduce its long-term earnings value. This reinforces concerns following the company’s recent revenue and earnings miss. Fiserv: Low Valuation Is Not A Reason To Buy

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Private Wealth Asset Management LLC acquired a new stake in Fiserv in the 4th quarter valued at about $25,000. Goodman Advisory Group LLC bought a new position in Fiserv during the fourth quarter worth about $27,000. Keating Financial Advisory Services Inc. acquired a new position in Fiserv during the second quarter worth approximately $30,000. Osterweis Capital Management Inc. acquired a new position in Fiserv during the second quarter worth approximately $32,000. Finally, Reflection Asset Management bought a new stake in Fiserv in the fourth quarter valued at approximately $36,000. 90.98% of the stock is currently owned by institutional investors and hedge funds.

Fiserv Stock Performance

The company has a market capitalization of $24.12 billion, a price-to-earnings ratio of 8.71, a PEG ratio of 4.59 and a beta of 0.80. The stock has a 50-day moving average price of $51.34 and a 200-day moving average price of $53.71. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.04 and a quick ratio of 1.04.

Fiserv (NASDAQ:FISV) last issued its earnings results on Thursday, August 6th. The business services provider reported $1.84 EPS for the quarter, missing the consensus estimate of $1.91 by ($0.07). The business had revenue of $4.96 billion for the quarter, compared to the consensus estimate of $5.04 billion. Fiserv had a return on equity of 15.80% and a net margin of 13.42%.The company’s quarterly revenue was down 4.1% on a year-over-year basis. As a group, analysts forecast that Fiserv, Inc. will post 7.26 earnings per share for the current year.

About Fiserv

Fiserv, Inc is a global financial technology company that provides payments and financial services technology to banks, credit unions, merchants and other businesses. Its offerings support electronic payments, account processing, digital banking, merchant acquiring, fraud prevention and related financial services operations.

The company’s products and platforms include Clover, a point-of-sale and business management system for small and midsize businesses; Carat, which provides enterprise commerce and payment solutions; and services that help financial institutions manage accounts, digital channels, card programs, payments and data.