Robert H. B. Baldwin Jr., a director at Global Payments Inc. (NYSE:GPN), recently made significant transactions involving the company's common stock, according to a recent SEC filing. The $29 billion market cap company, which InvestingPro analysis indicates is currently trading below its Fair Value, maintains a strong "GOOD" financial health rating. On December 13, Baldwin purchased 5,800 shares at an average price of $116.00 per share, totaling approximately $672,800. This acquisition increased his total holdings to 42,738 shares. Notably, Global Payments has maintained dividend payments for 24 consecutive years, demonstrating consistent shareholder returns.
The filing also noted a transaction on December 12, where Baldwin disposed of 5,800 shares. However, this transfer was made without consideration, as indicated in the filing, and did not involve a direct financial exchange. Following these transactions, Baldwin's stake in Global Payments remains substantial, reflecting his ongoing commitment to the company. For deeper insights into GPN's valuation and additional ProTips, visit InvestingPro, where you'll find comprehensive analysis in the Pro Research Report.
In other recent news, Global Payments Inc. reported a 6% increase in adjusted net revenue to $2.36 billion and a 12% rise in adjusted earnings per share to $3.08 for the third quarter of 2024. The company also announced the sale of its AdvancedMD business to Francisco Partners for $1.125 billion as part of its strategic initiatives. BMO (TSX:BMO) Capital Markets responded to these developments by raising its out-year estimates for Global Payments by 1-2%, reflecting in a new price target of $125.00.
Meanwhile, B. Riley maintained a Buy rating on Global Payments, citing the company's undervalued growth potential. The firm's valuation of Global Payments is based on a 15 times multiple of its estimated 2025 EPS of $12.82, leading to a $194 price target. In addition to earnings and strategic sales, Global Payments is expanding its Merchant Solutions sector, which saw a 7% revenue growth, driven by robust point-of-sale (POS) sales and strategic expansions.
Despite challenges in commercial card transactions and investment delays, Global Payments remains optimistic about its transformation efforts, particularly in cloud solutions. The company's adjusted net revenue projection for 2024 is between $9.17 billion and $9.30 billion, with an adjusted earnings per share expected to be between $11.54 and $11.70. These recent developments underline Global Payments' strategic focus on enhancing shareholder returns and maintaining a healthy balance sheet.
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