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Late rally ends choppy dayThis summary was created by AI, based on 1 opinions in the last 12 months.
Global Payments Inc. (GPN-N) experienced a 17% decline in its stock due to its positioning in the crowded enterprise software market, which is currently in a bear market. The company reported a satisfactory quarter but did not adjust its full-year forecast. The expert reviews suggest that the stock is facing challenges in a competitive market, which is impacting its performance and investor confidence.
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-N on the New York Stock Exchange (GPN). It is usually referred to as NYSE:GPN or GPN-N
In the last year, 1 stock analyst published opinions about GPN-N. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Global Payments Inc. .
Global Payments Inc. was never recommended as a Top Pick on Stockchase. 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 2024-12-05, Global Payments Inc. (GPN-N) stock closed at a price of $115.86.
Global Payments was down 17%, because it's in enterprise software, a crowded space that's in a bear market. They reported an okay quarter, but didn't change their full-year forecast.