Fidelity National Information Services, Inc. ($FIS) is a leading technology solutions provider for financial institutions and businesses. The company operates through four main segments including Banking, Merchant, Capital Markets, and Corporate and Other. Over the last few months, FIS has been subjected to a number of ratings by equities analysts. While two investment analysts have rated the stock as sell, ten have assigned a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company – meaning that there is still some confidence in the stock.
Despite this confidence in FIS’s future growth potential, there are concerns about the current state of affairs surrounding its stock price. The stock opened at $56.00 on Wednesday with a market capitalization of $33.15 billion. The PE ratio of -1.98 and price-to-earnings-growth ratio of 0.91 indicate that the company may be trading at an undervalued level despite it being fairly stable with a beta value of 0.82.
In terms of recent activities involving FIS insiders and institutional investors – CFO Erik D Hoag sold over 5,658 shares worth nearly $361 thousand while director Jeffrey E Stiefler acquired 2,243 shares in February at an average cost per share of $66.88.
Several hedge funds and institutional investors have also bought or sold shares in FIS recently indicating that even though the stock may appear undervalued currently due to poor performance; big-money players still see potential growth in the near future.
While Bloomberg reports an average “Hold” rating on FIS with consensus price target set at $89.48; it’s up to shareholders to decide when to invest their hard-earned money into this financial-technology giant – will they follow current ratings or opt for something else?
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