Stock Price & Analysis

Based on the provided data and recent market activity, here's a comprehensive analysis of GPN stock:

Technical Analysis

The stock is currently showing bearish signals with:

• RSI (14) at 39.47 indicating neutral to slightly oversold conditions
• MACD trending downward with -1.11 and negative histogram
• Price trading below both 20-day (109.41) and 60-day (112.33) moving averages

Fundamental Analysis

The company has shown significant improvement in its financial metrics:

• Revenue grew from $8.98B (2022) to $9.65B (2023)
• Net income increased substantially from $111.5M to $986.2M
• EPS improved from $0.40 to $3.77
• ROE increased from 0.47% to 4.35%

Recent Developments

RBC Capital recently raised their price target from $130 to $139 while maintaining an Outperform rating. The analyst notes that Global Payments' transformation agenda is progressing well, with successful divestitures and organizational restructuring.

Insider Sentiment

There has been positive insider activity with 42 insiders increasing their holdings over the past quarter, suggesting internal confidence in the company's prospects.

Dividend Analysis

The company recently announced a $0.25 quarterly dividend (0.9% yield), with:

• Sustainable payout ratio of 13%
• Expected EPS growth of 59.3% next year
• Strong earnings coverage

Recommendation

SELL for the short term, HOLD for long term investors.

Rationale:

1. Technical indicators show bearish momentum
2. Price is trading below key moving averages
3. However, strong fundamentals and positive analyst outlook support long-term potential

Price Targets:

• Support levels: $104.71 (Fibonacci S1)
• Resistance levels: $111.73 (Fibonacci R1)

Based on the provided data and analyst forecasts, here's the price prediction for GPN stock in 2025:

Price Target Analysis: The consensus from 26 Wall Street analysts indicates a median price target of $135.76 for GPN by end of 2025, with a range of $100.00 (low) to $194.00 (high). This represents a potential upside of 28.48% from the current price of $105.67.

Key Drivers:

• Revenue is expected to reach $9.53B in 2025, showing a -5.70% decline from 2024, followed by a recovery to $10.11B in 2026
• EPS is projected to grow significantly to $12.77 in 2025, representing a 107.32% increase from 2024
• The company maintains strong fundamentals with a forward P/E of 8.27x for 2025

Price Prediction for 2025: Based on technical analysis, fundamental outlook, and analyst consensus, GPN stock is expected to reach $132-135 range by end of 2025. This target is supported by:

1. Strong EPS growth trajectory
2. Reasonable valuation metrics
3. Broad analyst consensus around this range

The S1 support level for GPN Stock is $104.71 ,The R1 resistant level for GPN Stock is $111.73.

As of the end of day on 2025-02-14, the price of GPN Stock was $105.63.

The target price for GPN Stock according to analyst rating is 132.21, with the highest price target at 163.00 and the lowest at 100.00. Analysts have a Moderate Buy rating on GPN Stock overall.

The market cap of GPN is $26.2B.

Based on the recent financial data and market indicators, Global Payments (GPN) appears fairly valued with some potential concerns. The company's P/E ratio has significantly improved from 245.49 in 2022 to 33.70 in 2023, indicating a more reasonable valuation level compared to historical metrics. The EV/EBITDA ratio of 12.34 suggests moderate valuation compared to industry standards, while showing strong operational improvements with net margin increasing from 1.6% to 10.66% in 2023. Technical indicators show bearish signals with RSI at 39.47 and negative MACD, suggesting near-term downward pressure. Recent analyst coverage maintains positive outlook with RBC Capital raising price target to $139, though current price around $105 reflects market skepticism.

Global Payments Inc. is a payments technology company that delivers software and services. It operates through two segments: Merchant Solutions, Issuer Solutions and Business. Through its Merchant Solutions segment, the Company provides payments technology and software solutions to customers. Its segment offerings include authorization, settlement and funding services, customer support, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and reporting. In addition, it offers an array of enterprise software solutions that streamline business operations to customers in numerous vertical markets. Through its Issuer Solutions segment, the Company provide solutions that enable financial institutions and other financial service providers to manage their card portfolios. It also provides commercial payments, accounts payable and electronic payment alternatives solutions that support B2B payment processes for businesses and governments.

Based on the company's strong financial performance and transformation initiatives, Global Payments (GPN) stock is projected to reach $165-175 by 2030, representing a 55-65% upside from current levels. The company's plan to deliver over $600 million in annual run-rate operating income benefits by early 2027 and consistent dividend growth with a 38% CAGR over the past decade support this bullish outlook. The company's robust earnings growth of 24% per year over the past five years, combined with its strategic position in the digital payments industry, suggests sustained long-term value creation.

GPN has a total of 27000 employees.