Zacks Investment Research Downgrades Total System Services, Inc. (TSS) to Hold

Zacks Investment Research Downgrades Total System Services, Inc. (TSS) to Hold

Total System Services, Inc. (NYSE:TSS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Friday.

According to Zacks, “Total System is set to benefit from its robust NetSpend business, while the TransFirst acquisition supports its merchant acquiring business. A number of acquisitions made by it have contributed to overall growth. For 2017, the company increased its earnings guidance. Management anticipates adjusted EPS to grow about 13-17% y/y. The shares have gained 21% year to date, outperforming the Zacks categorized Financial Transaction Services industry that has gained 17% over the same time frame. However, the company suffers from stiff competition and huge cash outlays on acquisition. Further, the new rules aimed to boost consumer protections for prepaid accounts and cards are likely to hurt the company's top line, with 2018 revenue to be down by about $30–$40 million.”

A number of other equities research analysts also recently issued reports on the company. Goldman Sachs Group Inc upgraded Total System Services from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $60.00 to $68.00 in a research report on Monday, May 8th. First Analysis cut Total System Services from an “overweight” rating to an “equal weight” rating and raised their price objective for the company from $60.00 to $63.00 in a research note on Wednesday, May 3rd. They noted that the move was a valuation call. Stifel Nicolaus set a $65.00 price objective on Total System Services and gave the company a “buy” rating in a research note on Wednesday, April 26th. Guggenheim initiated coverage on Total System Services in a research note on Thursday, March 30th. They set a “buy” rating and a $62.00 price objective on the stock. Finally, Atlantic Securities reaffirmed a “neutral” rating and set a $59.00 price objective on shares of Total System Services in a research note on Wednesday, April 12th. Six equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus target price of $60.81.

Shares of Total System Services (NYSE:TSS) opened at 59.31 on Friday. Total System Services has a 12-month low of $46.22 and a 12-month high of $60.21. The firm has a market capitalization of $10.91 billion, a PE ratio of 32.71 and a beta of 1.00. The company’s 50-day moving average price is $57.43 and its 200 day moving average price is $53.57.

Total System Services (NYSE:TSS) last posted its quarterly earnings results on Tuesday, April 25th. The credit services provider reported $0.79 EPS for the quarter, topping the Zacks’ consensus estimate of $0.77 by $0.02. Total System Services had a return on equity of 24.32% and a net margin of 8.38%. The firm had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same period last year, the company earned $0.66 earnings per share. The business’s revenue for the quarter was up 62.3% on a year-over-year basis. On average, equities analysts forecast that Total System Services will post $3.24 earnings per share for the current year.

In related news, Chairman M Troy Woods sold 6,500 shares of the firm’s stock in a transaction dated Wednesday, May 3rd. The stock was sold at an average price of $57.30, for a total value of $372,450.00. Following the sale, the chairman now directly owns 285,966 shares of the company’s stock, valued at $16,385,851.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.60% of the stock is owned by company insiders.

A number of hedge funds have recently bought and sold shares of TSS. Vanguard Group Inc. boosted its stake in Total System Services by 3.2% in the first quarter. Vanguard Group Inc. now owns 16,006,463 shares of the credit services provider’s stock valued at $855,707,000 after buying an additional 490,011 shares during the last quarter. FMR LLC boosted its stake in Total System Services by 14.8% in the first quarter. FMR LLC now owns 11,224,948 shares of the credit services provider’s stock valued at $600,086,000 after buying an additional 1,447,047 shares during the last quarter. BlackRock Inc. boosted its stake in Total System Services by 2,540.3% in the first quarter. BlackRock Inc. now owns 11,122,344 shares of the credit services provider’s stock valued at $594,599,000 after buying an additional 10,701,089 shares during the last quarter. State Street Corp boosted its stake in Total System Services by 0.9% in the first quarter. State Street Corp now owns 7,038,746 shares of the credit services provider’s stock valued at $376,286,000 after buying an additional 62,264 shares during the last quarter. Finally, Wellington Management Group LLP boosted its stake in Total System Services by 23.4% in the first quarter. Wellington Management Group LLP now owns 4,353,926 shares of the credit services provider’s stock valued at $232,761,000 after buying an additional 824,600 shares during the last quarter. 71.48% of the stock is currently owned by institutional investors and hedge funds.

About Total System Services

Total System Services, Inc (TSYS) is a payment solutions provider that provides payment processing services, merchant services and related payment services to financial and non-financial institutions. The Company’s segments include North America Services, Merchant Services, NetSpend and International Services.new TradingView.widget({ “height”: 400, “width”: 625, “symbol”: “TSS”, “interval”: “D”, “timezone”: “Etc/UTC”, “theme”: “White”, “style”: “1”, “locale”: “en”, “toolbar_bg”: “#f1f3f6”, “enable_publishing”: false, “hideideas”: true, “referral_id”: “2588”});

Get a free copy of the Zacks research report on Total System Services (TSS)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Related posts

Leave a Comment