Fiserv ($FISV) announces share repurchase plan and insider selling raises questions

Fiserv, Inc. ($FISV) recently declared that its board has approved a share repurchase plan, which allows the company to buy back 75,000,000 of its outstanding shares through open market purchases. Such a repurchase plan is generally an indication that the management of the company believes that its shares are undervalued in the market.

Veriti Management LLC reduced its holdings in Fiserv by 7.9% during the fourth quarter, according to the firm’s most recent 13F filing with the Securities & Exchange Commission. The firm now owns 11,641 shares of Fiserv after selling 997 shares during the quarter. These holdings were worth $1,177,000 as of Veriti Management LLC’s most recent SEC filing.

Furthermore, several insiders have also taken advantage of high prices lately and decided to sell their stock options for cash instead of holding onto them for longer periods. Chief Risk Officer Christopher M. Foskett sold 9,000 shares at an average price of $111.00 per share for a total transaction value of $999,000 on Friday 24th March this year. Mr Foskett now directly owns a total of 97,665 shares in Fiserv valued at $10,840,815 after this sale.

Another top executive who made use of such opportunity was COO Guy Chiarello who sold 2,937 stocks at an average price of $105.03 per share generating a revenue amounting to $308,473 back in January this year.

Over the last three months alone insiders pulled out over 1 million shares from various sources totaling around $180 million dollars’ worth placed into their pockets – highlighting that existing stakeholders view current market conditions as being favorable for selling off ownership stakes within one’s very own organization.

Overall industry analysts assert that these continuous insider sells alongside any potential concerns surrounding the share buyback program just announced by Fiserv would be cause enough for informed investors to intensify their scrutiny of the stock performance and how it is being driven by both insiders and large funds alike.

Fiserv Attracts Institutional Investor Attention with Strong Earnings Results and Potential for Growth

Fiserv, Inc. ($FISV) has caught the attention of institutional investors as Atlas Capital Advisors LLC, Colonial Trust Advisors, MV Capital Management Inc., EverSource Wealth Advisors LLC and Cambridge Trust Co. have all modified their holdings in the company. According to a recent report from MarketWatch, these firms have been acquiring shares in Fiserv with gains of up to 71.9% in the second quarter alone.

A business services provider that specializes in financial technology, Fiserv has had an impressive run thanks to its robust earnings results released earlier this year. The company’s Q4 earnings call reported revenue of $4.63 billion – up 8.8% compared to the same period last year – while its net margin surged at 14.26%. This growth has not gone unnoticed by research firms with a “Moderate Buy” rating and an average price target of $127.14.

However, it is worth noting that institutional investors now own close to 89% of Fiserv’s outstanding shares, indicating that individual retail investors interested in investing may find it a little challenging to gain access to the stock.

Despite currently trading at $111.84 per share, Fiserv appears destined for more significant gains based on expert evaluations and strong quarterly earnings figures galvanizing investor interests this year.

Investors bullish on fintech stocks and financial service providers believe that Fiserv presents an excellent opportunity for long-term investment relative to other companies listed on Nasdaq or Dow Jones due to its proven track record and potential for growth.

In summary, institutional investor interest is intensifying towards technology-aided payment solution providers such as Fiserv because their unique revenue models can assure return-on-investment regardless of market volatilities. While the stock price may be above the means of retail investors, there is still plenty of opportunity to position oneself favorably on this rising fintech company.