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Guy Chiarello, the Chief Operating Officer of Fiserv Inc (NYSE:FI) (NASDAQ:FISV), has recently engaged in significant trading activity involving the company's shares, according to the latest regulatory filings. In a planned transaction, Chiarello sold 24,000 shares of Fiserv stock at a weighted average price of $164.97, totaling approximately $3.96 million. The sales were executed in multiple trades with prices ranging from $164.16 to $165.15.
On the same day, the COO also acquired 24,000 shares at a price of $52.81 per share, amounting to a total purchase value of $1.27 million. These transactions were part of a pre-arranged 10b5-1 trading plan, which is typically established for estate and financial planning purposes and allows insiders to trade their own stock at predetermined times to avoid accusations of insider trading.
The filings also disclosed that Chiarello holds an indirect ownership interest in 37,381 shares of Fiserv common stock through The Denise Chiarello 2021 Trust, which benefits himself, his children, and for which he serves as trustee.
The recent transactions by Fiserv's COO reflect a significant change in his holdings in the company, and they provide investors with insight into executive behavior regarding their stock ownership. It is worth noting that the sales and purchases by insiders are often closely watched by the investment community as they can signal confidence or concern about the company's prospects.
Fiserv Inc, headquartered in Milwaukee, Wisconsin, is a leading provider of financial services technology solutions, and its stock is traded on the NASDAQ stock exchange under the ticker symbol FISV.
In other recent news, Fiserv Inc. has made significant strides in the financial sector. The company recently completed a public offering and issuance of senior notes totaling $1.75 billion. This includes $850 million of 4.750% senior notes due in 2030 and $900 million of 5.150% senior notes due in 2034. Fiserv has also reported a 7% year-over-year increase in second-quarter 2024 revenue, reaching a record $5.11 billion, and a 31% increase in second-quarter earnings. This positive performance has led to an upward revision of its full-year profit forecast.
Several analyst firms have adjusted their price targets for Fiserv. Tigress Financial Partners raised its price target to $190, citing the company's continued growth and product innovation. Mizuho Securities also increased its price target to $183, highlighting the robustness of Fiserv's Merchant Solutions business. TD Cowen has raised its target for Fiserv to $182, based on the company's consistent performance and successful product strategy.
Fiserv's growth trajectory is further supported by strategic acquisitions, which broaden its product and service offerings. The company has also launched new banking features and plans to introduce additional restaurant functionality for its Clover platform. These are among the recent developments that highlight Fiserv's ongoing progress in the financial services technology sector.
InvestingPro Insights
As Fiserv Inc's (NASDAQ:FISV) COO Guy Chiarello adjusts his stake in the company, investors and analysts alike are evaluating the firm's financial health and market position. Recent data from InvestingPro offers additional insights into Fiserv's performance and valuation metrics that could be of interest to stakeholders monitoring executive trading activity.
The company currently boasts a robust market capitalization of $95.33 billion, reflecting investor confidence and a significant presence in the financial services technology sector. This is further underscored by Fiserv's P/E ratio, which stands at 28.57, suggesting that the stock is trading at a price relatively proportional to its earnings. However, when looking at near-term earnings growth, the company appears to be trading at a low P/E ratio, which could indicate an undervaluation of its future earnings potential according to one of the InvestingPro Tips.
In terms of profitability, Fiserv has been successful over the last twelve months, with a gross profit margin of 60.96%, indicating a strong ability to retain revenue after the cost of goods sold is accounted for. Additionally, the company's operating income margin sits at 27.23%, revealing efficient management and a healthy financial structure. This operational efficiency is a critical aspect for investors to consider, especially in light of the COO's recent trading activity.
Another InvestingPro Tip highlights that Fiserv is trading near its 52-week high, with the price at 99.84% of this peak, which could signal market optimism about the company's future prospects. This is complemented by a positive price total return over the last year, amounting to 34.55%, showcasing the stock's strong performance relative to the market.
For those seeking deeper insights and additional metrics, InvestingPro offers a comprehensive list of tips, with 15 additional analyst earnings revisions upwards for the upcoming period, suggesting a bullish outlook on the company's financial trajectory. To explore these and other in-depth analyses, interested parties can visit InvestingPro's dedicated page for Fiserv at https://www.investing.com/pro/FISV.
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