Zacks Investment Research lowered shares of Total System Services (NYSE:TSS) from a hold rating to a sell rating in a research note published on Thursday.
According to Zacks, “Total System Services’ shares have lost in a year's time, comparing unfavorably against its industry’s gain the same time frame. Also, its exposure to foreign exchange volatility and investment expenses continue to bother the company. However, its strong organic revenue growth reflects exceptional execution of strategic goals. The company’s acquisition strategy complements its organic growth. Its favorable 2018 guidance investors’ optimism on the stock. The company has strengthened its capital position by reducing debt. A reduction in the tax rate also favors the company's margins and growth. “
Several other equities research analysts have also recently commented on TSS. Nomura boosted their target price on Total System Services from $107.00 to $109.00 and gave the company a buy rating in a research note on Wednesday, October 24th. Wells Fargo & Co boosted their target price on Total System Services from $100.00 to $105.00 and gave the company an outperform rating in a research note on Wednesday, October 24th. BMO Capital Markets began coverage on Total System Services in a research note on Wednesday, September 26th. They issued a market perform rating and a $94.00 target price on the stock. KeyCorp cut their target price on Total System Services from $110.00 to $90.00 and set an overweight rating on the stock in a research note on Wednesday, January 2nd. Finally, ValuEngine cut Total System Services from a buy rating to a hold rating in a research note on Friday, November 23rd. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and twelve have issued a buy rating to the stock. The company has a consensus rating of Buy and an average price target of $96.75.
Total System Services (NYSE:TSS) last released its quarterly earnings data on Tuesday, October 23rd. The credit services provider reported $1.16 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.09 by $0.07. Total System Services had a return on equity of 30.28% and a net margin of 15.93%. The business had revenue of $964.60 million for the quarter, compared to analysts’ expectations of $950.55 million. During the same quarter in the previous year, the business posted $0.88 EPS. Total System Services’s revenue for the quarter was up 13.1% on a year-over-year basis. On average, research analysts expect that Total System Services will post 4.26 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, January 2nd. Stockholders of record on Tuesday, December 18th were paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.62%. The ex-dividend date of this dividend was Monday, December 17th. Total System Services’s dividend payout ratio is currently 16.15%.
Several institutional investors have recently made changes to their positions in TSS. Csenge Advisory Group acquired a new position in Total System Services in the 3rd quarter valued at $37,000. Ancora Advisors LLC acquired a new stake in shares of Total System Services during the 3rd quarter worth $111,000. Willingdon Wealth Management acquired a new stake in shares of Total System Services during the 3rd quarter worth $150,000. CENTRAL TRUST Co grew its holdings in shares of Total System Services by 187.9% during the 3rd quarter. CENTRAL TRUST Co now owns 1,647 shares of the credit services provider’s stock worth $163,000 after purchasing an additional 1,075 shares in the last quarter. Finally, Birmingham Capital Management Co. Inc. AL acquired a new stake in shares of Total System Services during the 3rd quarter worth $202,000. Institutional investors own 76.79% of the company’s stock.
Total System Services Company Profile
Total System Services, Inc provides payment processing, merchant, and related payment services to financial and nonfinancial institutions worldwide. The company operates through three segments: Merchant Solutions, Issuer Solutions, and Netspend. It offers general purpose reloadable prepaid and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers and businesses.
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