Total System Services, Inc. (TSS) Lowered to “Hold” at Zacks Investment Research

Total System Services, Inc. (NYSE:TSS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.

According to Zacks, “Shares of Total System have outperformed its industry year to date. The company is set to benefit from its robust NetSpend business, while the TransFirst acquisition will support its merchant acquiring business. A number of acquisitions made by it have contributed to overall growth. Its second-quarter earnings beat the Zacks Consensus Estimate and grew year over year.  Following strong performance in first-half of the year, the company pulled up its 2017 earnings guidance, which instills investors' confidence. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 1.5% upward over the last 60 days. However, the company suffers from stiff competition and huge cash outlays on acquisition and investments. Further, the new rules aimed to boost consumer protections for prepaid accounts and cards are likely to hurt the company's top line, with 2018 revenue to be down by about $30–$40 million. “

A number of other research firms have also weighed in on TSS. Cowen and Company reaffirmed a “buy” rating and issued a $67.00 price objective on shares of Total System Services in a research note on Thursday, September 7th. Bank of America Corporation assumed coverage on Total System Services in a research note on Tuesday, September 12th. They set an “underperform” rating and a $64.00 price target for the company. KeyCorp reissued an “overweight” rating on shares of Total System Services in a research note on Thursday, August 31st. Royal Bank Of Canada assumed coverage on Total System Services in a research note on Monday, August 28th. They set an “outperform” rating and a $75.00 price target for the company. Finally, BidaskClub raised Total System Services from a “buy” rating to a “strong-buy” rating in a research note on Friday, August 18th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $65.25.

Shares of Total System Services (NYSE TSS) traded down 0.13% during mid-day trading on Monday, hitting $66.61. The stock had a trading volume of 400,740 shares. The stock’s 50-day moving average is $66.18 and its 200 day moving average is $59.28. The company has a market cap of $12.27 billion, a PE ratio of 32.32 and a beta of 1.13. Total System Services has a 12 month low of $46.22 and a 12 month high of $70.62.

Total System Services (NYSE:TSS) last released its quarterly earnings data on Tuesday, July 25th. The credit services provider reported $0.85 earnings per share for the quarter, topping analysts’ consensus estimates of $0.80 by $0.05. The firm had revenue of $844.07 million during the quarter, compared to analyst estimates of $842.57 million. Total System Services had a return on equity of 25.49% and a net margin of 8.78%. The business’s quarterly revenue was up 6.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.74 earnings per share. On average, equities research analysts forecast that Total System Services will post $3.28 earnings per share for the current fiscal year.

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In other news, CFO Paul M. Todd sold 4,057 shares of the stock in a transaction that occurred on Monday, August 14th. The stock was sold at an average price of $63.50, for a total value of $257,619.50. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP G Sanders Griffith III sold 18,472 shares of the stock in a transaction that occurred on Friday, July 28th. The stock was sold at an average price of $63.25, for a total value of $1,168,354.00. Following the completion of the sale, the executive vice president now owns 187,684 shares in the company, valued at $11,871,013. The disclosure for this sale can be found here. Over the last quarter, insiders sold 243,503 shares of company stock worth $15,490,969. Company insiders own 2.60% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of Total System Services by 3.3% in the second quarter. Vanguard Group Inc. now owns 16,532,149 shares of the credit services provider’s stock worth $962,997,000 after buying an additional 525,686 shares during the period. Synovus Financial Corp raised its holdings in shares of Total System Services by 1.0% in the second quarter. Synovus Financial Corp now owns 13,709,409 shares of the credit services provider’s stock worth $798,579,000 after buying an additional 134,998 shares during the period. FMR LLC raised its holdings in shares of Total System Services by 14.8% in the first quarter. FMR LLC now owns 11,224,948 shares of the credit services provider’s stock worth $600,086,000 after buying an additional 1,447,047 shares during the period. BlackRock Inc. raised its holdings in shares of Total System Services by 2,540.3% in the first quarter. BlackRock Inc. now owns 11,122,344 shares of the credit services provider’s stock worth $594,599,000 after buying an additional 10,701,089 shares during the period. Finally, State Street Corp raised its holdings in shares of Total System Services by 0.9% in the first quarter. State Street Corp now owns 7,038,746 shares of the credit services provider’s stock worth $376,286,000 after buying an additional 62,264 shares during the period. Hedge funds and other institutional investors own 76.13% of the company’s stock.

Total System Services Company Profile

Total System Services, Inc (TSYS) is a payment solutions provider that provides payment processing services, merchant services and related payment services to financial and non-financial institutions. The Company’s segments include North America Services, Merchant Services, NetSpend and International Services.

Analyst Recommendations for Total System Services (NYSE:TSS)

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