ACI Worldwide (NASDAQ:ACIW) Inc. shares have reached an unprecedented peak, touching an all-time high of $43.62. This milestone underscores a period of robust performance for the payment systems company, which has seen its stock value soar over the past year. Investors have been rallying behind ACI Worldwide, propelling the stock to new heights and reflecting a remarkable 1-year change of 89.11%. This surge in stock price is indicative of the company's strong market position and investor confidence in its growth trajectory.
In other recent news, ACI Worldwide, Inc. has been making significant strides in its operations. The company reported a 9% increase in total revenue for the first quarter of 2024, amounting to $316 million. The bank segment saw a substantial 20% increase in revenue, while the merchant and biller segments reported revenue growth of 3% and 5% respectively. Following these robust results, ACI Worldwide revised its full-year 2024 guidance upwards, expecting revenue to fall between $1.547 billion and $1.581 billion, and adjusted EBITDA to range from $418 million to $433 million.
In a strategic move, ACI Worldwide announced a stock buyback program worth $400 million, including the $65 million remaining from its previous authorization. The buyback program, which does not have an expiration date, will be conducted either on the open market or through privately negotiated transactions.
The company also announced the departure of Chief Product Officer Debbie Guerra, with Scotty Perkins stepping in as interim Chief Product Officer. This executive shift is a significant change in the company's leadership team.
On the analyst front, DA Davidson maintained a Buy rating on ACI Worldwide's stock, raising its price target from $36.00 to $42.00. The firm's analysts noted the company's strong first-quarter achievements, with revenue and adjusted EBITDA exceeding their forecasts. These are the recent developments for ACI Worldwide, Inc.
InvestingPro Insights
ACI Worldwide Inc.'s remarkable ascent in the stock market is further illuminated by key metrics and insights from InvestingPro. With a market capitalization of approximately $4.59 billion and a price-to-earnings (P/E) ratio standing at 31.74, the company showcases its substantial valuation in the industry. Adjusting for the last twelve months as of Q1 2024, the P/E ratio becomes even more favorable at 28.03, hinting at investors' optimism about ACI Worldwide's earnings potential.
InvestingPro Tips indicate that while analysts have revised earnings expectations downwards, the stock's low price volatility and a PEG ratio of 0.51 suggest a stable investment with reasonable growth prospects. Moreover, ACI Worldwide is trading near its 52-week high, with a price 98.23% of this peak, and has delivered a strong return of 87.98% over the last year, reinforcing its positive momentum in the market.
For investors looking to delve deeper into ACI Worldwide's performance and future potential, additional InvestingPro Tips are available, including insights on profitability and dividend policies. To access these insights and empower your investment decisions, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With 11 more InvestingPro Tips available, investors can gain a comprehensive understanding of ACI Worldwide's market dynamics and investment profile.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.