Total System Services (TSS) Stock Rating Upgraded by Zacks Investment Research

Total System Services (NYSE:TSS) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Monday.

According to Zacks, “Total System Services’ fourth-quarter 2018 earnings per share of $1.08 surpassed the Zacks Consensus Estimate by 1.9% and also surged nearly 31.5% year over year. Strong performances by all three of its segments have contributed to this favorable result. Its strong organic revenue growth reflects exceptional execution of strategic goals. The company’s acquisition strategy is also impressive. Consistent generation of free cash flow enables business investments and enhances its financial flexibility. However, its stock has underperformed its industry in a year's time. The company’s revenues are likely to be dampened by the new consumer financial protection bureau rule that is expected to be implemented by April 2019. The company also carries a high debt, which elevates financial risks. Moreover, a return on equity below that of its industry average makes the stock unattractive.”

Other analysts have also recently issued reports about the stock. Nomura lifted their target price on shares of Total System Services from $107.00 to $109.00 and gave the stock a “buy” rating in a research note on Wednesday, October 24th. KeyCorp lowered their target price on shares of Total System Services from $110.00 to $90.00 and set an “overweight” rating for the company in a research note on Wednesday, January 2nd. Wells Fargo & Co lifted their target price on shares of Total System Services from $100.00 to $105.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 24th. Royal Bank of Canada lifted their target price on shares of Total System Services to $110.00 and gave the stock an “in-line” rating in a research note on Wednesday, January 30th. Finally, ValuEngine cut shares of Total System Services from a “buy” rating to a “hold” rating in a research note on Friday, November 23rd. Eight investment analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. The company has an average rating of “Buy” and a consensus price target of $98.53.

NYSE:TSS opened at $92.42 on Monday. Total System Services has a fifty-two week low of $75.58 and a fifty-two week high of $100.39. The stock has a market capitalization of $16.58 billion, a PE ratio of 21.69, a PEG ratio of 1.39 and a beta of 1.09. The company has a current ratio of 2.21, a quick ratio of 2.57 and a debt-to-equity ratio of 1.50.

Total System Services (NYSE:TSS) last released its earnings results on Tuesday, January 29th. The credit services provider reported $1.08 EPS for the quarter, topping analysts’ consensus estimates of $1.01 by $0.07. The company had revenue of $1.02 billion during the quarter, compared to analysts’ expectations of $968.62 million. Total System Services had a net margin of 14.31% and a return on equity of 30.94%. As a group, equities research analysts forecast that Total System Services will post 4.64 EPS for the current year.

A number of institutional investors and hedge funds have recently bought and sold shares of the business. First Hawaiian Bank raised its position in Total System Services by 2.9% during the 4th quarter. First Hawaiian Bank now owns 5,059 shares of the credit services provider’s stock worth $411,000 after buying an additional 143 shares during the last quarter. Pineno Levin & Ford Asset Management Inc. raised its position in Total System Services by 0.3% during the 4th quarter. Pineno Levin & Ford Asset Management Inc. now owns 67,691 shares of the credit services provider’s stock worth $5,503,000 after buying an additional 175 shares during the last quarter. Hartford Investment Management Co. raised its position in Total System Services by 0.9% during the 4th quarter. Hartford Investment Management Co. now owns 20,693 shares of the credit services provider’s stock worth $1,682,000 after buying an additional 182 shares during the last quarter. Dupont Capital Management Corp raised its position in Total System Services by 19.6% during the 4th quarter. Dupont Capital Management Corp now owns 1,185 shares of the credit services provider’s stock worth $96,000 after buying an additional 194 shares during the last quarter. Finally, Contravisory Investment Management Inc. raised its position in Total System Services by 4.0% during the 4th quarter. Contravisory Investment Management Inc. now owns 5,456 shares of the credit services provider’s stock worth $444,000 after buying an additional 211 shares during the last quarter. 76.57% of the stock is owned by institutional investors.

Total System Services Company Profile

Total System Services, Inc provides payment processing, merchant, and related payment services to financial and nonfinancial institutions worldwide. The company operates through three segments: Merchant Solutions, Issuer Solutions, and Netspend. It offers general purpose reloadable prepaid and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers and businesses.

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