First Data Corporation (FDC) Stock Is Bruised, But Is It Still a Buy?

Despite closing 0.33 points higher on 06 December, First Data Corporation (NYSE:FDC) remains a key investment for many, but the stock is also a popular trading vehicle. Here’s how to trade it using charts and trading levels Friday. The shares accumulated 1.82 percent at $18.43 with a heavy trade volume of 10.548 million shares. After opening the session at $17.69, the shares went as high as $18.47 and as low as $17.48, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $17.2 billion and now has 931.12 million shares outstanding. First Data Corporation (FDC) stock has gained 0.16 percent of market value in 21 trading days.

FDC stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.51 a share in the trailing twelve months. The stock’s value has surged 10.29 percent year to date (YTD) against a rise of 13.42 percent in 12 month’s time. The company’s shares still trade -30.77 percent away from its 1-year high of $26.62 and 25.1 percent up from 52-week low of $14.73. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

First Data Corporation (FDC) will probably climb 48.56 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $35-month high price target. This represents a whopping 89.91 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $28, which represents a return potential of 51.93 percent when compared to the closing price of the stock of $18.43 on Thursday, December 06. The lowest price target for the stock is $20 — slightly more than 8.52 percent from FDC’s current share price.

History has shown that shares in First Data Corporation have gone up on 9 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. Investors will get their next glimpse of FDC’s Q4 earnings on February 18. Analysts are forecasting revenue to climb 12.1 percent to $2.19B in the fiscal fourth quarter, while earnings are seen soaring by nearly -18.18 percent to $0.36 per share. It earned $0.35 per share, worse than the $0.37, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.16B, worse than the $2.21B analysts expected. Earnings are estimated to increase by 159.4 percent this year, 14.01 percent next year and continue to increase by 7.82 percent annually for the next 5 years.

Let’s take a look at some insider activity at First Data Corporation (NYSE:FDC) and see the pattern. The earliest insider trade took place on 11/29/2018. Armine-Klein Cynthia A parted with a total of 99.51 thousand shares of company at average share price of $19. The total for the sales was set at $1.89 million. After this transaction, the account balance stood at 585.86 thousand shares. The stock lost -3 percent since that insider sale. On 11/08/2018, Mccarthy Barry C, sold 113.52 thousand shares at a price per share of $19.13. This removed 2.17 million shares from the insider’s fortune and the stock saw a -3.66 percent retreat in value since the news became public. This transaction left 333.57 thousand shares in the account.

On 09/17/2018, Director Nevels James E performed a purchase transaction worth $2.49 thousand. This purchase at $26.52 each has added 0.09 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -30.51 percent decrease since the transaction was reported. The insider now is left with 29.02 thousand shares remaining in the account. Mccarthy Barry C, sold 151.2 thousand shares for $3.9 million. The disposal occurred on 09/14/2018 was priced at $25.78 per share. The share price plunged -28.51 percent since the reporting date. Mccarthy Barry C now left with a stake of 333.57 thousand FDC stock worth $6.15 million after the insider selling.

The stock is currently hovering around the first support level of $17.78. Below this, the next support is placed in the zone of $17.14. Till the time, the FDC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 45.24 on daily chart, which may remain a cause for concern. If the price breaks below $17.14 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $18.77 mark may result into a pull-back move towards $19.12 level.

Shares of First Data Corporation (FDC) are trading at a P/E ratio of 11.92 times earnings reported for the past 12 months. The industry FDC operates in has an average P/E of 49.4. Its P/E ratio went as low as 14.13X and as high as 31.12 over the 5-year span.Further, it is sporting a 1.67 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.55. 54.4 percent is the gross profit margin for First Data Corporation and operating margin sits at 18.1 percent. Along with this, the net profit margin is 17.5 percent.