Verifone Systems (NYSE:PAY) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Monday.
According to Zacks, “VeriFone’s fourth-quarter fiscal 2017 results benefited from strong revenue growth in Latin America and Europe, Middle East and Africa. However, the company’s business has been affected by macroeconomic headwinds in emerging markets, which has resulted in increased pricing pressure for the company. Increasing competition and sluggishness in the Asia-Pacific and North America regions also poses concern. Divestitures of the Petro Media and the Taxi businesses will hurt top-line growth in the near term. Given the highly leveraged balance sheet, higher interest rate on its debt is also expected to continue to negatively impact profitability. Shares have underperformed the broader industry on a year-to-date basis. However, the company’s focus on strengthening its product portfolio and increasing clientele will likely be a key growth driver going ahead.”
Other equities research analysts have also recently issued research reports about the company. Jefferies Group reissued a “buy” rating and issued a $23.00 price objective (up previously from $20.00) on shares of Verifone Systems in a research note on Monday, September 11th. BidaskClub raised Verifone Systems from a “sell” rating to a “hold” rating in a research note on Wednesday, August 23rd. Bank of America assumed coverage on Verifone Systems in a research note on Tuesday, September 12th. They issued an “underperform” rating and a $19.00 price objective for the company. Credit Suisse Group raised their price objective on Verifone Systems from $20.00 to $21.00 and gave the company a “neutral” rating in a research note on Wednesday, December 13th. Finally, Raymond James Financial cut Verifone Systems from a “strong-buy” rating to an “outperform” rating and reduced their price objective for the company from $25.00 to $22.00 in a research note on Thursday, November 16th. Two investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and four have issued a buy rating to the stock. The stock currently has an average rating of “Hold” and an average price target of $20.02.
Verifone Systems (NYSE:PAY) last issued its earnings results on Tuesday, December 12th. The business services provider reported $0.44 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.43 by $0.01. Verifone Systems had a positive return on equity of 13.52% and a negative net margin of 9.29%. The business had revenue of $477.00 million during the quarter, compared to the consensus estimate of $472.33 million. During the same period in the previous year, the company posted $0.30 earnings per share. The firm’s revenue for the quarter was up 2.8% on a year-over-year basis. equities analysts anticipate that Verifone Systems will post 1.2 EPS for the current year.
Verifone Systems declared that its Board of Directors has initiated a stock buyback plan on Tuesday, December 12th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the business services provider to reacquire shares of its stock through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.
Several large investors have recently made changes to their positions in the stock. Zions Bancorporation purchased a new position in Verifone Systems in the third quarter worth $108,000. Riverhead Capital Management LLC boosted its position in Verifone Systems by 80.9% in the second quarter. Riverhead Capital Management LLC now owns 6,693 shares of the business services provider’s stock worth $121,000 after purchasing an additional 2,993 shares during the last quarter. Timber Hill LLC purchased a new position in Verifone Systems in the second quarter worth $214,000. NGAM Advisors L.P. boosted its position in Verifone Systems by 5.2% in the second quarter. NGAM Advisors L.P. now owns 12,628 shares of the business services provider’s stock worth $229,000 after purchasing an additional 622 shares during the last quarter. Finally, Turner Investments LLC purchased a new position in Verifone Systems in the third quarter worth $284,000.
Verifone Systems Company Profile
VeriFone Systems, Inc offers payments and commerce solutions. The Company is engaged in designing, manufacturing, marketing and supplying a range of payment solutions and complementary services. It provides solutions and services for the retail point-of-sale (POS) that enable various forms of commerce.
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