Adalio T. Sanchez, a director at ACI Worldwide , Inc. (NASDAQ:ACIW), has sold a significant portion of the company's common stock, according to a recent SEC filing. On November 13, Sanchez sold a total of 9,750 shares, generating approximately $558,196. The sale prices ranged from $57.2461 to $57.285 per share.
The transactions included the sale of 1,200 shares at a weighted average price of $57.285, with Sanchez retaining direct ownership of 43,272 shares afterward. Additionally, 8,550 shares were sold at a weighted average price of $57.2461, held indirectly through a trust, leaving 8,181 shares in indirect ownership.
Following these transactions, Sanchez continues to hold 35,999 shares indirectly via GRAT #4.
In other recent news, ACI Worldwide has been the subject of significant developments. The company reported strong third-quarter results, with a 24% increase in year-over-year revenue and a substantial 61% jump in adjusted EBITDA. The growth in high-margin Software (ETR:SOWGn) License fees, up 98% year-over-year, was a key driver of this impressive performance.
DA Davidson, however, downgraded ACI Worldwide from Buy to Neutral, despite the strong results. The firm raised its price target from $57 to $60, suggesting some potential for the stock's value to rise. This shift in rating reflects DA Davidson's belief that the stock's current price already factors in the company's improved growth prospects.
ACI Worldwide also raised its full-year 2024 revenue guidance to between $1.567 billion and $1.601 billion, and adjusted EBITDA to between $433 million and $448 million. The Bank segment led this growth, noting a 72% increase in real-time payments. With the Payments Hub nearing completion, pilot implementations are expected in Q2 2025, further demonstrating ACI Worldwide's strategic positioning in the global payments market.
InvestingPro Insights
ACI Worldwide's recent stock performance and financial metrics provide additional context to Director Adalio T. Sanchez's decision to sell shares. According to InvestingPro data, ACIW has seen a remarkable 108.41% price total return over the past year, with a 47.89% increase in the last six months alone. This strong performance may have influenced the timing of the insider sale.
The company's financial health appears robust, with a market capitalization of $5.7 billion and a revenue of $1.62 billion in the last twelve months as of Q3 2023. ACIW's revenue growth of 13.31% over the same period, coupled with a significant 24.44% quarterly revenue growth, suggests the company is in a phase of expansion.
InvestingPro Tips highlight that ACI Worldwide is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.16. This could indicate that the stock is potentially undervalued despite its recent price surge. Additionally, the company boasts a perfect Piotroski Score of 9, which is a positive indicator of financial strength and potential for future performance.
It's worth noting that while Sanchez has sold a portion of his holdings, ACIW's stock price is currently at 91.09% of its 52-week high, suggesting continued investor confidence. The average analyst fair value target of $66 per share, compared to the previous closing price of $55, implies there may still be room for growth.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights, with 8 more tips available for ACI Worldwide on the InvestingPro platform.
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