Fidelity National Information Services, Inc. (FIS): Is This Insider Trading a Scary Sign?

After opening Tuesday at around $106.8, Fidelity National Information Services, Inc. (NYSE:FIS) stock surged to as high as $108.43. It then made a downturn, dipping as low as $104.965. Although the stock bounced a bit into the close, it finished the day at $106.55, down -2.55 points or -2.34 percent on the day. The final volume for the day was 3.92 million, which was more than its average volume. The firm is left with a market cap of $34.8 billion and now has 326.5 million shares outstanding. Fidelity National Information Services, Inc. (FIS) stock has gained 2.92 percent of market value in 21 trading days.

FIS stock has a trailing 3-year beta of 0.74, 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 $2.25 a share in the trailing twelve months. The stock’s value has surged 3.9 percent year to date (YTD) against a rise of 12.12 percent in 12 month’s time. The company’s shares still trade -3.86 percent away from its 1-year high of $110.83 and 13.7 percent up from 52-week low of $93.71. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Fidelity National Information Services, Inc. (FIS) will probably climb 13.56 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $133 price as 12-month high target. This represents a whopping 24.82 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $120, which represents a return potential of 12.62 percent when compared to the closing price of the stock of $106.55 on Tuesday, February 12. The lowest price target for the stock is $110 — slightly more than 3.24 percent from FIS’s current share price.

History has shown that shares in Fidelity National Information Services, Inc. have gone up on 18 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. Analysts are forecasting revenue to suffer decline of -4.8 percent to $2.22B in the fiscal fourth quarter, while earnings are seen soaring by nearly 16.91 percent to $1.59 per share. It earned $1.33 per share, better than the $1.3, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.08B, worse than the $2.09B analysts expected. Earnings are estimated to increase by -7 percent this year, 10.19 percent next year and continue to increase by 13.67 percent annually for the next 5 years.

Let’s take a look at some insider activity at Fidelity National Information Services, Inc. (NYSE:FIS) and see the pattern. The earliest insider trade took place on 01/15/2019. Mayo Marc M parted with a total of 34.83 thousand shares of company at average share price of $105. The total for the sales was set at $3.66 million. After this transaction, the CEVP, Chief Legal Officer account balance stood at 18.13 thousand shares. The stock grew 1.48 percent since that insider sale. On 12/12/2018, Thompson Kathleen T, CSVP, Chief Accounting Officer, sold 9.51 thousand shares at a price per share of $106.9. This removed 1.02 million shares from the insider’s fortune and the stock saw a -0.33 percent retreat in value since the news became public. This transaction left 7.89 thousand shares in the CSVP, Chief Accounting Officer account.

On 11/13/2018, Corp EVP – Chief Risk Officer Montana Gregory G performed a sale transaction worth $5.31 million. This sale at $105.46 each has eliminated 50.35 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 1.03 percent increase since the transaction was reported. The insider now is left with 8.44 thousand shares remaining in the account. Stallings James B Jr, who performs the Director job, sold 1.84 thousand shares for $200.3 thousand. The disposal occurred on 09/20/2018 was priced at $108.92 per share. The share price plunged -2.18 percent since the reporting date. Stallings James B Jr now left with a stake of 8.98 thousand FIS stock worth $956.61 thousand after the insider selling.

The stock is currently hovering around the first support level of $104.87. Below this, the next support is placed in the zone of $103.18. Till the time, the FIS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.05 on daily chart, which may remain a cause for concern. If the price breaks below $103.18 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $108.33 mark may result into a pull-back move towards $110.11 level.

Shares of Fidelity National Information Services, Inc. (FIS) are trading at a P/E ratio of 48.39 times earnings reported for the past 12 months. The industry FIS operates in has an average P/E of 22.74. Its P/E ratio went as low as 26.05X and as high as 58.87 over the 5-year span.Further, it is sporting a 4.05 on the Price-to-Sales ratio. Compare this with the industry average P/S of 9.45. 33.7 percent is the gross profit margin for Fidelity National Information Services, Inc. and operating margin sits at 17.2 percent. Along with this, the net profit margin is 17.9 percent.