Kenneth Best, the Chief Accounting Officer of Fiserv Inc . (NASDAQ:NYSE:FI), recently executed a significant stock sale, according to a filing with the Securities and Exchange Commission. On November 12, Best sold 20,821 shares of Fiserv common stock at an average price of $214.61 per share, amounting to a total of approximately $4.47 million.
In addition to the sale, Best acquired several blocks of common stock through the exercise of stock options. These acquisitions included 4,570 shares at $56.91 per share, 6,698 shares at $69.90 per share, 5,277 shares at $84.73 per share, and 4,276 shares at $112.87 per share. The total value of these acquisitions was approximately $1.66 million.
Following these transactions, Best's direct ownership of Fiserv stock now stands at 38,093 shares.
In other recent news, Fiserv has been the subject of several analyst upgrades following its third-quarter financial results. KeyBanc raised the stock price target for Fiserv to $225, citing the company's adjusted earnings per share and updated full-year 2024 guidance that surpassed analyst predictions. TD Cowen increased its price target to $230, highlighting Fiserv's continued strength in its Merchant services and the expected rise in Financial Solutions. RBC Capital Markets also raised its price target to $224, confident in Fiserv's sustained growth and effective value-added services penetration.
Wells Fargo (NYSE:WFC) maintained its Overweight rating and increased the price target to $220, appreciating Fiserv's consistent top-line and earnings per share growth. Baird, too, increased its price target on Fiserv to $220, noting that the company's earnings before interest and taxes exceeded expectations, and its earnings per share and revenue guidance for the year were revised upwards.
In terms of financial performance, Fiserv's third-quarter results revealed a 17% year-over-year increase in adjusted earnings per share to $2.30, and a 7% growth in adjusted revenue to $4.9 billion. The company's Merchant Solutions segment displayed a remarkable 24% organic revenue growth, leading Fiserv to raise its full-year guidance for organic revenue growth to 16%-17% and adjusted EPS to $8.73-$8.80.
In addition to these financial developments, Fiserv has announced new initiatives such as a partnership with DoorDash (NASDAQ:DASH), a proof of concept with Walmart (NYSE:WMT), and the expansion of its Clover offerings, all part of Fiserv's efforts to enhance its financial services offerings and improve cash flow management for businesses. These are the recent developments in Fiserv's growth trajectory.
InvestingPro Insights
The recent stock sale by Fiserv Inc.'s Chief Accounting Officer Kenneth Best comes at a time when the company's stock is performing exceptionally well. According to InvestingPro data, Fiserv has seen a robust 68.36% price total return over the past year, with a particularly strong 27.23% return in the last three months. This performance aligns with an InvestingPro Tip indicating that Fiserv is trading near its 52-week high, currently at 97.84% of that peak.
Fiserv's market capitalization stands at an impressive $119.78 billion, reflecting its status as a prominent player in the Financial Services industry—another point highlighted by InvestingPro Tips. The company's financial health appears solid, with revenue of $20.12 billion over the last twelve months and a gross profit margin of 61.06%, demonstrating strong profitability.
However, investors should note that Fiserv is trading at a relatively high P/E ratio of 40.39, which InvestingPro Tips flag as a high earnings multiple. This valuation metric suggests that the stock may be priced at a premium relative to its earnings, which could be a consideration for potential investors.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 13 more tips available for Fiserv, providing a deeper understanding of the company's financial position and market performance.
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