Global Payments Target of Unusually Large Options Trading (NYSE:GPN)

Global Payments Inc. (NYSE:GPN) was the target of unusually large options trading activity on Friday. Stock traders purchased 4,666 call options on the stock. This is an increase of 76% compared to the typical volume of 2,645 call options.

Global Payments Stock Performance

NYSE:GPN opened at $97.55 on Friday. The firm’s fifty day simple moving average is $103.72 and its 200-day simple moving average is $107.34. The company has a quick ratio of 0.93, a current ratio of 0.97 and a debt-to-equity ratio of 0.66. The stock has a market cap of $23.99 billion, a PE ratio of 15.79, a price-to-earnings-growth ratio of 0.86 and a beta of 1.04. Global Payments has a fifty-two week low of $90.99 and a fifty-two week high of $133.63.

Global Payments (NYSE:GPN) last issued its earnings results on Thursday, February 13th. The business services provider reported $2.84 earnings per share for the quarter, missing the consensus estimate of $2.98 by ($0.14). Global Payments had a return on equity of 12.21% and a net margin of 15.54%. The company had revenue of $2.29 billion for the quarter, compared to analyst estimates of $2.31 billion. Analysts expect that Global Payments will post 11.89 earnings per share for the current fiscal year.

Global Payments Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 28th. Investors of record on Friday, March 14th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Friday, March 14th. This represents a $1.00 annualized dividend and a yield of 1.03%. Global Payments’s dividend payout ratio is presently 16.18%.

Analysts Set New Price Targets

A number of analysts have weighed in on GPN shares. Morgan Stanley cut their price target on Global Payments from $166.00 to $163.00 and set an “overweight” rating on the stock in a research note on Friday, February 14th. Keefe, Bruyette & Woods raised their target price on Global Payments from $130.00 to $140.00 and gave the stock an “outperform” rating in a research report on Monday, December 9th. Stephens downgraded Global Payments from an “overweight” rating to an “equal weight” rating and lowered their price target for the company from $125.00 to $120.00 in a report on Friday, January 10th. Citigroup dropped their price target on shares of Global Payments from $138.00 to $135.00 and set a “buy” rating on the stock in a research note on Tuesday, February 18th. Finally, The Goldman Sachs Group restated a “neutral” rating and set a $122.00 price objective (down previously from $155.00) on shares of Global Payments in a research report on Thursday, January 9th. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating and fifteen have assigned a buy rating to the company’s stock. According to MarketBeat.com, Global Payments has a consensus rating of “Moderate Buy” and a consensus price target of $134.33.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Beaird Harris Wealth Management LLC acquired a new position in shares of Global Payments during the 3rd quarter worth $25,000. Optiver Holding B.V. purchased a new stake in shares of Global Payments in the fourth quarter valued at about $28,000. Whipplewood Advisors LLC acquired a new stake in shares of Global Payments in the fourth quarter valued at approximately $37,000. Quintet Private Bank Europe S.A. acquired a new stake in shares of Global Payments in the fourth quarter valued at approximately $38,000. Finally, True Wealth Design LLC purchased a new position in shares of Global Payments during the 4th quarter worth approximately $40,000. Hedge funds and other institutional investors own 89.76% of the company’s stock.

About Global Payments

Global Payments Inc provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services.