Doyle Simons, Board Member at Fiserv FI, disclosed an insider sell on October 24, according to a recent SEC filing.

What Happened: Simons’s recent move involves selling 40,000 shares of Fiserv. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $8,078,800.

Fiserv shares are trading down 0.25% at $202.78 at the time of this writing on Friday morning.

Discovering Fiserv: A Closer Look

Fiserv is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing, and loan processing, for us banks and credit unions, with a focus on small and midsize banks. Through the merger with First Data in 2019, Fiserv also provides payment processing services for merchants. About 10% of the company’s revenue is generated internationally.

Financial Milestones: Fiserv’s Journey

Revenue Growth: Fiserv’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 7.02%. This indicates a substantial increase in the company’s top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Navigating Financial Profits:

• Gross Margin: The company maintains a high gross margin of 61.51%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Fiserv exhibits below-average bottom-line performance with a current EPS of 0.98.

Debt Management: Fiserv’s debt-to-equity ratio is below the industry average. With a ratio of 0.92, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: Fiserv’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 39.25.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 5.96 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Fiserv’s EV/EBITDA ratio stands at 16.1, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Exploring the Significance of Insider Trading

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Important Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Fiserv’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.