Check Out the Insider Trading of Total System Services, Inc. (TSS)

Will Total System Services, Inc. (NYSE:TSS) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed lower on 11 February. The shares dropped -0.48 points or -0.52 percent at $91.34 with a heavy trade volume of 1.561 million shares. After opening the session at $91.95, the shares went as high as $92.72 and as low as $91.1, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $16.5 billion and now has 180.49 million shares outstanding. Total System Services, Inc. (TSS) stock has gained 7.74 percent of market value in 21 trading days.

TSS stock has a trailing 3-year beta of 1.12, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.89 a share in the trailing twelve months. The stock’s value has surged 12.36 percent year to date (YTD) against a rise of 12.53 percent in 12 month’s time. The company’s shares still trade -9.01 percent away from its 1-year high of $100.39 and 20.85 percent up from 52-week low of $75.58. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Total System Services, Inc. (TSS) will probably climb 13.31 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $120 price as 12-month high target. This represents a whopping 31.38 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $104, which represents a return potential of 13.86 percent when compared to the closing price of the stock of $91.34 on Monday, February 11. The lowest price target for the stock is $85 — slightly more than -6.94 percent from TSS’s current share price.

History has shown that shares in Total System Services, Inc. have gone up on 20 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. Investors will get their next glimpse of TSS’s Q1 earnings on April 23. Analysts are forecasting revenue to climb 6.9 percent to $1B in the fiscal first quarter, while earnings are seen soaring by nearly 2.65 percent to $1.16 per share. It earned $1.08 per share, better than the $1.07, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $959M, worse than the $972M analysts expected. Earnings are estimated to increase by 40.1 percent this year, 13.89 percent next year and continue to increase by 12.7 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $90.72. Below this, the next support is placed in the zone of $90.1. Till the time, the TSS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 61.49 on daily chart, which may remain a cause for concern. If the price breaks below $90.1 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $92.34 mark may result into a pull-back move towards $93.34 level.

Further, it is sporting a 3.87 on the Price-to-Sales ratio. Compare this with the industry average P/S of 400.15. 34.6 percent is the gross profit margin for Total System Services, Inc. and operating margin sits at 17.8 percent. Along with this, the net profit margin is 15.7 percent.