
NYSE:GPN
This summary was created by AI, based on 2 opinions in the last 12 months.
Global Payments Inc. (GPN) has faced some challenges recently, as indicated by the fact that it has triggered a stop loss at $67, prompting a recommendation to cover the position. However, the company remains a solid contender in the retail payment platform sector, with earnings reported in line with expectations. Management is optimistic, forecasting a 13-15% increase in earnings per share for 2026. Additionally, the stock is trading under book value and at a multiple of 13 times earnings, reflecting potential value for investors. The company is also benefiting from steady operating cash reserves and an active share buyback program, which may boost shareholder value over time.
The sell-off in the share price recently is due to a few reasons:
In 2022, the company did record an impairment of goodwill of their previous acquisition, which the market perceives as an overpayment for their previous acquisition, leading to questionable capital allocation skills of management. Debt also increased with acquisitions, and is now about 5X cash flow, fairly high for the current environment.
Recessions could affect consumers’ purchases, which affects GPN’s business. Also, amid the banking crisis recently, companies related to the Financial sector are under pressure.
The good news is that there is some insider purchases at these prices in the last few months, and the company also repurchased shares quite significantly in 2022, indicating management believes shares are quite undervalued. Payments and card processing is a high-quality business with high ROEs and predictable growth. We think GPN will do OK going forward, although investors also need to be mindful of their acquisitions strategies. Its decline is not really out of line vs other companies over the past year, and it is well priced at 9.6X earnings.
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Global Payments Inc. is a American stock, trading under the symbol GPN (previously GPN-N on Stockchase) on the New York Stock Exchange (GPN). It is usually referred to as NYSE:GPN or GPN
In the last year, 1 stock analyst published opinions about GPN (previously GPN-N on Stockchase). 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is BUY on WEAKNESS. Read the latest stock experts' ratings for Global Payments Inc. .
Global Payments Inc. was recommended as a Top Pick by Javed Mirza on 2019-08-13. Read the latest stock experts ratings for Global Payments Inc. .
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for help on deciding if you should buy, sell or hold the stock.
1 stock analyst on Stockchase covered Global Payments Inc. in the last year. It is a trending stock that is worth watching.
On 2026-06-02, Global Payments Inc. (GPN) stock closed at a price of $74.03.
Our PAST TOP PICK with GPN has triggered its stop at $67. To remain disciplined, we recommend covering the position at this time.