Total System Services, Inc. (NYSE:TSS) Upgraded to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Total System Services, Inc. (NYSE:TSS) from a hold rating to a buy rating in a research note published on Friday. The firm currently has $67.00 price objective on the credit services provider’s stock.
According to Zacks, “Total System is set to benefit from its robust NetSpend business, while the TransFirst acquisition supports its merchant acquiring business. A number of acquisitions made by it have contributed to overall growth. For 2017, the company increased its earnings guidance. Management anticipates adjusted EPS to grow about 13-17% y/y. The shares have, however gained 24% year to date, outperforming the Zacks categorized Financial Transaction Services industry that has gained 19% over the same time frame. However, the company suffers from stiff competition and huge cash outlays on acquisition. 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 equities analysts have also issued reports about the stock. Instinet raised their price objective on shares of Total System Services from $61.00 to $66.00 and gave the company a buy rating in a research report on Tuesday, June 6th. Barclays PLC lifted their target price on shares of Total System Services from $65.00 to $67.00 and gave the company an overweight rating in a research report on Thursday, May 25th. First Analysis lowered shares of Total System Services from an overweight rating to an equal weight rating and lifted their target price for the company from $60.00 to $63.00 in a research report on Wednesday, May 3rd. They noted that the move was a valuation call. Atlantic Securities reiterated a neutral rating and set a $59.00 target price on shares of Total System Services in a research report on Wednesday, April 12th. Finally, Mizuho assumed coverage on shares of Total System Services in a research report on Tuesday, June 27th. They set a neutral rating and a $63.00 target price for the company. Seven research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. The company has a consensus rating of Buy and a consensus target price of $61.89.
Total System Services (NYSE TSS) traded down 0.28% during trading on Friday, reaching $60.50. 844,661 shares of the company were exchanged. Total System Services has a one year low of $46.22 and a one year high of $61.42. The company has a market capitalization of $11.13 billion, a P/E ratio of 33.37 and a beta of 1.13. The firm’s 50-day moving average is $58.96 and its 200 day moving average is $54.70.
Total System Services (NYSE:TSS) last released its quarterly earnings data on Tuesday, April 25th. The credit services provider reported $0.79 EPS for the quarter, beating analysts’ consensus estimates of $0.77 by $0.02. Total System Services had a net margin of 7.86% and a return on equity of 25.16%. The company had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same period last year, the business earned $0.66 earnings per share. Total System Services’s revenue was up 62.3% compared to the same quarter last year. On average, analysts anticipate that Total System Services will post $3.24 EPS for the current fiscal year.
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The firm also recently disclosed a quarterly dividend, which was paid on Monday, July 3rd. Stockholders of record on Thursday, June 22nd were issued a $0.10 dividend. The ex-dividend date was Tuesday, June 20th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.66%. Total System Services’s payout ratio is 22.10%.
In other news, Chairman M Troy Woods sold 6,500 shares of the business’s stock in a transaction that occurred on Wednesday, May 3rd. The shares were sold at an average price of $57.30, for a total value of $372,450.00. Following the completion of the sale, the chairman now directly owns 285,966 shares in the company, valued at approximately $16,385,851.80. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Richard W. Ussery sold 48,000 shares of the business’s stock in a transaction that occurred on Monday, June 12th. The stock was sold at an average price of $59.19, for a total transaction of $2,841,120.00. Following the completion of the sale, the director now owns 219,968 shares of the company’s stock, valued at $13,019,905.92. The disclosure for this sale can be found here. Insiders own 2.60% of the company’s stock.
Several large investors have recently made changes to their positions in TSS. Russell Investments Group Ltd. purchased a new position in shares of Total System Services during the fourth quarter valued at approximately $1,805,000. Dimensional Fund Advisors LP increased its position in shares of Total System Services by 1.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 870,889 shares of the credit services provider’s stock valued at $42,701,000 after buying an additional 12,926 shares during the last quarter. Federated Investors Inc. PA increased its position in shares of Total System Services by 11.0% in the fourth quarter. Federated Investors Inc. PA now owns 3,935 shares of the credit services provider’s stock valued at $193,000 after buying an additional 391 shares during the last quarter. HighPoint Advisor Group LLC purchased a new position in shares of Total System Services during the fourth quarter valued at approximately $785,000. Finally, Kentucky Retirement Systems purchased a new position in shares of Total System Services during the fourth quarter valued at approximately $589,000. Hedge funds and other institutional investors own 75.17% of the company’s stock.
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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