Total System Services (TSS) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Total System Services (NYSE:TSS) from a hold rating to a sell rating in a report released on Wednesday morning.

According to Zacks, “Total System Services’ shares have underperformed the industry in a year’s time. Revenues are likely to be dampened by the new consumer financial protection bureau rule that is expected to be implemented by April 2019. The company also carries a high debt, which elevates financial risks. Nevertheless, its strong organic revenue growth reflects exceptional execution of strategic goals. The company’s acquisition strategy is also impressive. Consistent generation of free cash flow enables business investments and enhances its financial flexibility.”

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A number of other research analysts also recently commented on the stock. Nomura reissued a buy rating on shares of Total System Services in a research report on Thursday, January 31st. KeyCorp lifted their price objective on shares of Total System Services from $90.00 to $95.00 and gave the company an overweight rating in a research report on Wednesday, January 30th. Royal Bank of Canada lifted their price objective on shares of Total System Services to $110.00 and gave the company an in-line rating in a research report on Wednesday, January 30th. Jefferies Financial Group initiated coverage on shares of Total System Services in a research report on Monday, January 28th. They issued a buy rating and a $105.00 price objective for the company. Finally, Bank of America raised shares of Total System Services from an underperform rating to a neutral rating in a report on Thursday, January 24th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and eleven have issued a buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus price target of $98.53.

Shares of TSS opened at $93.08 on Wednesday. Total System Services has a one year low of $75.58 and a one year high of $100.39. The stock has a market capitalization of $17.11 billion, a PE ratio of 21.85, a PEG ratio of 1.43 and a beta of 1.09. The company has a quick ratio of 2.57, a current ratio of 2.21 and a debt-to-equity ratio of 1.50.

Total System Services (NYSE:TSS) last announced its quarterly earnings data on Tuesday, January 29th. The credit services provider reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. Total System Services had a net margin of 14.31% and a return on equity of 30.94%. The company had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $968.62 million. On average, research analysts forecast that Total System Services will post 4.64 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Monday, April 1st. Investors of record on Thursday, March 21st will be issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 0.56%. The ex-dividend date is Wednesday, March 20th. Total System Services’s payout ratio is 12.21%.

In other Total System Services news, CFO Paul M. Todd sold 10,739 shares of Total System Services stock in a transaction dated Friday, February 8th. The shares were sold at an average price of $91.23, for a total value of $979,718.97. Following the completion of the sale, the chief financial officer now owns 62,891 shares in the company, valued at approximately $5,737,545.93. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP G Sanders Griffith III sold 11,273 shares of Total System Services stock in a transaction dated Friday, February 8th. The stock was sold at an average price of $91.23, for a total transaction of $1,028,435.79. Following the completion of the sale, the executive vice president now owns 192,324 shares of the company’s stock, valued at approximately $17,545,718.52. The disclosure for this sale can be found here. Insiders have sold a total of 72,121 shares of company stock valued at $6,579,599 in the last ninety days. 2.40% of the stock is currently owned by insiders.

Institutional investors have recently modified their holdings of the business. Laurel Wealth Advisors LLC acquired a new stake in Total System Services in the 4th quarter worth about $28,000. Csenge Advisory Group acquired a new stake in Total System Services in the 3rd quarter worth about $37,000. Daiwa SB Investments Ltd. acquired a new stake in Total System Services in the 4th quarter worth about $38,000. Exane Asset Management acquired a new stake in Total System Services in the 4th quarter worth about $41,000. Finally, Ipswich Investment Management Co. Inc. acquired a new stake in Total System Services in the 4th quarter worth about $45,000. Institutional investors and hedge funds own 76.64% of the company’s stock.

Total System Services Company Profile

Total System Services, Inc provides payment processing, merchant, and related payment services to financial and nonfinancial institutions worldwide. The company operates through three segments: Issuer Solutions, Merchant Solutions, and Consumer Solutions. It offers general purpose reloadable prepaid and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers and businesses.

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