Global Payments Inc. (GPN) Is Heating Up. Time to Buy?

Analysts are forecasting revenue to climb 9.7 percent to $1.03B in the next fiscal quarter, while earnings are seen soaring by nearly 23.36 percent to $1.32 per share. History has shown that shares in Global Payments Inc. have gone up on 22 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.44 per share, better than the $1.39, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.02B, in line with the $1.02B analysts expected. Earnings are estimated to increase by 145.8 percent this year, 16.59 percent next year and continue to increase by 22.36 percent annually for the next 5 years.

Global Payments Inc. (GPN) will probably climb 7.45 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $156 price as 12-month high target. This represents a whopping 27.09 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $133, which represents a return potential of 8.35 percent when compared to the closing price of the stock of $122.75 on Wednesday, February 13. The lowest price target for the stock is $94 — slightly more than -23.42 percent from GPN’s current share price.

The stock is currently hovering around the first support level of $120.84. Below this, the next support is placed in the zone of $118.93. Till the time, the GPN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 72.25 on daily chart, which may remain a cause for concern. If the price breaks below $118.93 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $123.93 mark may result into a pull-back move towards $125.1 level.

On 13th of February, Global Payments Inc. (NYSE:GPN) shares ended higher after a volatile session. The shares accumulated 5.33 points or 4.54 percent at $122.75 with a heavy trade volume of 2.69 million shares. After opening the session at $121.05, the shares went as high as $123.195 and as low as $120.11, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $19.1 billion and now has 155.6 million shares outstanding. Global Payments Inc. (GPN) stock has gained 11.55 percent of market value in 21 trading days.

GPN stock has a trailing 3-year beta of 1.16, 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 19.02 percent year to date (YTD) against a rise of 15.37 percent in 12 month’s time. The company’s shares still trade -5.03 percent away from its 1-year high of $129.25 and 29.47 percent up from 52-week low of $94.81. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Global Payments Inc. (GPN) are trading at a P/E ratio of 60.82 times earnings reported for the past 12 months. The industry GPN operates in has an average P/E of 19.66. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 5.4 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1132.65. 63.5 percent is the gross profit margin for Global Payments Inc. and operating margin sits at 20.3 percent. Along with this, the net profit margin is 17.5 percent.

Let’s take a look at some insider activity at Global Payments Inc. (NYSE:GPN) and see the pattern. The earliest insider trade took place on 01/14/2019. Baldwin Robert H B Jr parted with a total of 3 thousand shares of company at average share price of $110.82. The total for the sales was set at $332.46 thousand. After this transaction, the Director account balance stood at 79.76 thousand shares. The stock grew 5.96 percent since that insider sale. On 01/14/2019, Jacobs William I, Director, sold 0.6 thousand shares at a price per share of $109.8. This removed 65.88 thousand shares from the insider’s fortune and the stock saw a 6.94 percent rally in value since the news became public. This transaction left 32.2 thousand shares in the Director account.

On 01/14/2019, Director Silberstein Alan M performed a sale transaction worth $76.86 thousand. This sale at $109.8 each has eliminated 0.7 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 6.94 percent increase since the transaction was reported. The insider now is left with 40.77 thousand shares remaining in the account. Silberstein Alan M, who performs the Director job, sold 0.7 thousand shares for $71.77 thousand. The disposal occurred on 12/14/2018 was priced at $102.53 per share. The share price soared 14.52 percent since the reporting date. Silberstein Alan M now left with a stake of 41.47 thousand GPN stock worth $5.09 million after the insider selling.