Fidelity National Information Services (NYSE:FIS) experienced a significant adjustment in its price target, as analysts at BNP Paribas Exane reduced it from $60.00 to $55.00. This reduction, announced in a research note released to investors on January 15, 2024, indicates an “underperform” rating for the stock, suggesting a potential decline of approximately 10.49% from its previous closing price.
Several other financial institutions have also weighed in on Fidelity’s stock performance. Citigroup upgraded its rating to “hold” on October 23, 2023, while Jefferies Financial Group lowered its price target from $75.00 to $70.00 on October 14, 2023, maintaining a “hold” rating. Similarly, Keefe, Bruyette & Woods decreased their price target from $88.00 to $85.00, setting an “outperform” rating on October 1, 2023. Weiss Ratings reiterated a “sell (d)” rating on October 8, 2023, while Stephens reduced their target from $90.00 to $85.00, assigning it an “overweight” rating on January 16, 2024.
Currently, the consensus among eleven investment analysts includes Buy ratings from eight analysts and two Sell ratings. Data from MarketBeat indicates an average rating of “Hold” with a consensus price target of $79.94.
Recent Earnings Performance
On November 5, 2023, Fidelity National Information Services reported its latest quarterly earnings, revealing an earnings per share (EPS) of $1.51. This figure exceeded analysts’ expectations of $1.48 by $0.03. The company also noted a net margin of 1.45% and a return on equity of 19.76%. Revenue for the quarter reached $2.72 billion, surpassing the forecast of $2.65 billion and reflecting a year-over-year increase of 5.7%. For the fiscal year 2025, Fidelity has set its guidance at an EPS target of 5.740-5.780.
Insider Activity and Institutional Investments
In related developments, Director Jeffrey A. Goldstein acquired 941 shares of Fidelity’s stock on January 15, 2024, purchasing them at an average price of $64.11 per share. This acquisition amounted to a total investment of $60,327.51, increasing Goldstein’s ownership in the company to 14,529 shares, valued at approximately $931,454.19. Insider ownership is currently reported at 0.21%.
A variety of hedge funds and institutional investors have also adjusted their stakes in Fidelity National Information Services. For instance, Hilltop National Bank invested $1.6 million in the second quarter, while Norges Bank made a substantial new position worth $624.86 million. Brighton Jones LLC and Truist Financial Corp have also increased their investments during the second quarter.
Currently, institutional investors hold a significant majority of Fidelity’s stock, amounting to 96.23% of total shares.
Fidelity National Information Services operates as a global provider of financial technology solutions, catering to banks, capital markets firms, merchants, and corporations. Its range of services includes software development, processing, and outsourcing solutions that support various financial operations, including core banking, payments, and trading activities. The firm serves a diverse international client base across North America, Europe, Latin America, and the Asia-Pacific region.
