OMAHA - ACI Worldwide (NASDAQ: NASDAQ:ACIW), a provider of real-time payments software, has revealed a plan to buy back $400 million of its common stock, the company stated Thursday. This new buyback program includes the $65 million that remains from its previous authorization. In the current year, the company has already repurchased about 3 million shares, totaling $106 million.
The repurchase program is at the discretion of the management and will be conducted on the open market or through privately negotiated transactions. Additionally, the buyback may be facilitated by Rule 10b5-1 plans, which allow companies to repurchase their shares at times when they might otherwise be prevented from doing so due to insider trading laws or self-imposed trading blackout periods.
Importantly, this share repurchase authorization does not have an expiration date.
ACI Worldwide specializes in software that is essential for digital payment processing and management. The company's solutions cater to a wide range of clients, including corporations, fintechs, and financial disruptors, enabling them to handle various aspects of digital payments, from processing to fraud and risk management.
The statement from ACI Worldwide regarding this financial move is based on a press release.
In other recent news, ACI Worldwide demonstrated robust performance in its first quarter of 2024, with revenue figures slightly above expectations and adjusted EBITDA nearly double the forecast. The company reported a 9% increase in total revenue to $316 million, with significant growth in its bank segment, which saw a 20% increase in revenue. The merchant and biller segments also reported revenue growth of 3% and 5% respectively.
Following these strong results, ACI Worldwide has revised its full-year 2024 guidance upwards, expecting revenue to fall between $1.547 billion and $1.581 billion, and adjusted EBITDA to be in the range of $418 million to $433 million.
In light of these recent developments, DA Davidson maintained a Buy rating on ACI Worldwide's stock and raised its price target to $42.00, up from the previous $36.00. The firm's analysts noted the company's strong first-quarter achievements, with revenue and adjusted EBITDA exceeding their forecasts. The solid performance has led to a more favorable outlook for the year, prompting the firm to adjust its price target accordingly.
InvestingPro Insights
In light of ACI Worldwide's (NASDAQ: ACIW) recent announcement of a significant share repurchase program, investors may be keen to understand the company's financial metrics and market performance. According to InvestingPro data, ACI Worldwide has a market capitalization of $3.72 billion and a P/E ratio of 26.24, which adjusts to 22.84 when looking at the last twelve months as of Q1 2024. This adjustment indicates a company that is trading at a lower P/E ratio relative to near-term earnings growth, an aspect highlighted in one of the InvestingPro Tips.
Another important metric for investors to consider is the company's revenue growth. ACI Worldwide has shown a revenue increase of 6.51% over the last twelve months leading up to Q1 2024. This is coupled with a quarterly revenue growth of 9.09% in Q1 2024, suggesting a consistent upward trend in the company's financial performance.
From an investment perspective, ACI Worldwide has been highlighted for its low price volatility and high return over the last year, with a 51.35% price total return. These attributes, as detailed in InvestingPro Tips, may appeal to investors looking for stable growth potential and profitability. The company's stock has also been profitable over the last twelve months, and analysts predict it will remain profitable this year. However, it is important to note that ACI Worldwide does not pay a dividend to shareholders, which may influence the investment decisions of those seeking regular income.
Investors interested in a deeper dive into ACI Worldwide's financials and market performance can find additional insights and tips on InvestingPro, with a total of 7 tips available for ACIW. For those considering an InvestingPro subscription, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a comprehensive analysis to inform your investment decisions.
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