Fiserv, Inc. (NASDAQ: FISV) experienced a substantial increase in short interest, rising by 89.3% in December. As of December 15, 2023, short interest totaled 15,241,013 shares, compared to 8,052,396 shares at the end of November. This represents approximately 2.8% of the company’s total shares outstanding. Given an average daily trading volume of 12,290,421 shares, the short-interest ratio stands at 1.2 days, indicating a notable shift in investor sentiment.
Insider Transactions Highlight Confidence
In related developments, insider transactions have drawn attention. Adam L. Rosman, an executive at Fiserv, acquired 7,900 shares on December 2, 2023, at an average price of $63.19 per share, amounting to a total investment of $499,201. This purchase increased Rosman’s holdings to 61,285 shares, valued at approximately $3,872,599.15.
Additionally, Director Lance M. Fritz purchased 10,000 shares on October 30, 2023, at an average price of $65.18, totaling $651,800. Post-transaction, Fritz holds 13,086 shares, valued at about $852,945.48. Insider activity for the last quarter included total purchases of 34,900 shares, worth $2,211,971, with insiders owning approximately 1.00% of the company’s stock.
Institutional Investors Adjust Positions
Several institutional investors have also adjusted their stakes in Fiserv. Activest Wealth Management significantly increased its holdings by 3,150.0% during the first quarter, now owning 130 shares valued at $29,000. Other notable changes include Hager Investment Management Services LLC and Clear Street LLC, each acquiring new stakes valued at $34,000 in the second quarter.
Christopher J. Hasenberg Inc. raised its position by 218.5%, now holding 207 shares worth $36,000. Armstrong Advisory Group Inc. also increased its stake by 178.9%, owning 212 shares valued at $37,000. Overall, hedge funds and institutional investors control 90.98% of Fiserv’s stock.
Stock Performance and Analyst Ratings
Despite the surge in short interest, Fiserv’s stock recently dipped by 0.7%. The company reported its quarterly earnings on March 26, 2023, with earnings per share of $1.91 and revenues of $4.32 billion. Fiserv’s net margin stood at 17.05%, and return on equity was 19.47%. Analysts predict an earnings per share of $10.23 for the current year.
Research analysts have recently revised their ratings on Fiserv. Zacks Research downgraded the stock from a “hold” to a “strong sell” on October 31, 2023. Conversely, Argus maintained a “hold” rating, while JPMorgan Chase & Co. reaffirmed a “neutral” rating with a target price of $85.00. Jefferies Financial Group lowered its price objective from $70.00 to $60.00, also issuing a “hold” rating. Royal Bank of Canada set an $85.00 target, rating Fiserv as “outperform.”
Currently, the consensus rating for Fiserv is “Hold” with a price target of $119.58 according to MarketBeat.com.
About Fiserv, Inc.
Founded in 1984 and headquartered in Brookfield, Wisconsin, Fiserv, Inc. is a global leader in financial services technology. The company specializes in integrated solutions for payments, processing, risk and compliance, customer management, and business insights. Fiserv serves a diverse clientele, including banks, credit unions, securities broker-dealers, and retailers, providing essential services such as account processing systems and digital banking platforms.
