Frank Bisignano, the Chairman, President, and CEO of Fiserv Inc (NYSE:FI) (NASDAQ:FISV), has sold a significant portion of his holdings in the company stock, according to a recent filing. The transactions, which took place on September 20, 2024, involved the sale of company shares for a total value of over $25 million.
The sales were executed in multiple trades with prices ranging from $176.64 to $178.21. The weighted average sale prices for the transactions were reported as $176.64, $177.58, and $178.21, reflecting the different amounts and prices at which the stock was sold. The exact number of shares sold at each price point was not disclosed in the filing, but the total number of shares sold amounted to 144,000.
The disclosure, made through an SEC Form 4 filing, indicates that these sales were part of a prearranged trading plan under Rule 10b5-1, which allows company insiders to set up a trading plan for selling stocks they own. This plan was established by Bisignano on June 21, 2024, for estate and financial planning purposes.
Following these transactions, Bisignano's direct holdings in Fiserv common stock have decreased, but he still holds a substantial number of shares indirectly, including those held by trusts for the benefit of his children and an account for which he acts as a custodian.
Investors often watch insider transactions such as these for indications of management's view on the company's future prospects. While the sale of a significant amount of stock by a CEO may raise questions, it is not uncommon for executives to sell shares for personal financial management reasons, such as diversification or liquidity.
Fiserv Inc, headquartered in Milwaukee, Wisconsin, is a global provider of financial services technology. The company's shares are traded on the NASDAQ, and it has a diverse portfolio of solutions for payments, processing services, risk and compliance, customer and channel management, and insights and optimization.
The SEC filing includes a statement by Bisignano offering to provide full information regarding the number of shares and the prices at which the transactions were effected, upon request to the SEC staff, the issuer, or a security holder of the issuer.
In other recent news, Fiserv reported a 7% year-over-year increase in second-quarter 2024 revenue, reaching a record $5.11 billion, and a 31% increase in second-quarter earnings, leading to an upward revision of its full-year profit forecast. The company also completed a public offering and issuance of senior notes totaling $1.75 billion, introducing $850 million of 4.750% senior notes due in 2030 and $900 million of 5.150% senior notes due in 2034. Fiserv expanded its partnership with PayPal (NASDAQ:PYPL) Holdings, Inc. to streamline the integration of PayPal and Venmo services for its client base. Mizuho Securities maintained its Outperform rating on Fiserv, with a price target of $183.00, while BTIG initiated coverage on Fiserv with a 'Buy' rating. Tigress Financial Partners lifted its price target for Fiserv to $190. Fiserv's strategy includes growing its software and value-added services, with a focus on the restaurant sector, and leveraging its expansive network of banking relationships to promote its Cash Flow Central offering. These are recent developments in the company's performance and strategic initiatives.
InvestingPro Insights
Amidst the news of Frank Bisignano's stock sale, Fiserv Inc (NASDAQ:FISV) remains a prominent player in the financial services industry, according to an InvestingPro Tip. This is significant because it suggests that, despite the sale, the company's position in the market is robust. Additionally, another InvestingPro Tip highlights that analysts predict the company will be profitable this year, which may offer some reassurance to investors concerned about the insider selling activity.
Looking at the real-time data from InvestingPro, Fiserv's market capitalization stands at an impressive 103.23 billion USD. The company's P/E ratio currently sits at 30.88, which, when compared to the adjusted P/E ratio for the last twelve months as of Q2 2024 at 31.37, shows a stable valuation relative to its earnings. Moreover, Fiserv has demonstrated a solid revenue growth of 7.2% over the last twelve months as of Q2 2024, which is a testament to its financial performance. These metrics not only reflect the company's financial health but also its potential for future growth.
For investors looking to delve deeper into Fiserv's performance and potential, there are additional InvestingPro Tips available, offering a comprehensive analysis of the company's prospects. Visit InvestingPro for more detailed insights: https://www.investing.com/pro/FISV.
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