Euronet Worldwide (EEFT) Downgraded to “Hold” at Zacks Investment Research

Euronet Worldwide (NASDAQ:EEFT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday.

According to Zacks, “Euronet Worldwide’s shares have gained in a year’s time, comparing favorably against its industry’s loss in the same time-frame. Its strong position is backed by constant expansions across the globe through strategic acquisitions, strong results of the Electronic Funds Transfer (EFT) and Money Transfer segments. Its revenues have been consistently growing over the past few years on the back of the company’s diversity across products and geographies. However, rising expenses, which have eroded earnings per share, remain a headwind for the company. The low margin of the company is another concern.”

Several other equities research analysts also recently weighed in on the stock. Piper Jaffray Companies raised their target price on shares of Euronet Worldwide from $111.00 to $141.00 and gave the company an “overweight” rating in a research note on Monday, October 1st. SunTrust Banks raised their target price on shares of Euronet Worldwide to $130.00 and gave the company a “buy” rating in a research note on Wednesday, September 12th. Citigroup began coverage on shares of Euronet Worldwide in a research note on Tuesday, October 9th. They issued a “buy” rating and a $135.00 target price for the company. Wells Fargo & Co restated an “outperform” rating and issued a $150.00 target price on shares of Euronet Worldwide in a research note on Tuesday, October 2nd. Finally, William Blair upgraded shares of Euronet Worldwide from a “market perform” rating to an “outperform” rating in a research note on Monday, October 1st. Two research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus target price of $128.88.

EEFT stock traded down $0.85 during trading on Friday, hitting $112.07. 5,446 shares of the company’s stock traded hands, compared to its average volume of 463,056. The firm has a market cap of $5.99 billion, a price-to-earnings ratio of 25.88, a PEG ratio of 1.66 and a beta of 1.06. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.55. Euronet Worldwide has a 1 year low of $70.67 and a 1 year high of $121.93.

Euronet Worldwide (NASDAQ:EEFT) last issued its quarterly earnings data on Thursday, October 18th. The business services provider reported $2.09 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.04 by $0.05. The company had revenue of $714.50 million for the quarter, compared to analyst estimates of $709.33 million. Euronet Worldwide had a net margin of 6.02% and a return on equity of 24.13%. Analysts anticipate that Euronet Worldwide will post 5.25 EPS for the current fiscal year.

In other news, CEO Kevin J. Caponecchi sold 50,922 shares of Euronet Worldwide stock in a transaction on Monday, December 3rd. The shares were sold at an average price of $119.53, for a total transaction of $6,086,706.66. Following the completion of the sale, the chief executive officer now directly owns 97,774 shares in the company, valued at $11,686,926.22. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Michael J. Brown sold 50,000 shares of Euronet Worldwide stock in a transaction on Wednesday, September 12th. The stock was sold at an average price of $101.05, for a total transaction of $5,052,500.00. Following the sale, the chief executive officer now owns 1,511,118 shares of the company’s stock, valued at $152,698,473.90. The disclosure for this sale can be found here. Insiders have sold 395,129 shares of company stock valued at $44,319,156 over the last quarter. Insiders own 7.70% of the company’s stock.

Several large investors have recently bought and sold shares of EEFT. SRS Capital Advisors Inc. acquired a new stake in shares of Euronet Worldwide during the third quarter worth $133,000. Parametrica Management Ltd acquired a new position in Euronet Worldwide during the third quarter valued at $211,000. Engineers Gate Manager LP acquired a new position in Euronet Worldwide during the third quarter valued at $217,000. Keybank National Association OH acquired a new position in Euronet Worldwide during the third quarter valued at $236,000. Finally, Financial Counselors Inc. acquired a new position in Euronet Worldwide during the third quarter valued at $238,000.

About Euronet Worldwide

Euronet Worldwide, Inc provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. The company operates in three segments: Electronic Financial Transaction (EFT) Processing, epay, and Money Transfer.

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