Major Exercise Alert: Christopher Foskett Exercises Options Worth $2.33M At Fiserv

Christopher Foskett, Vice Chairman at Fiserv FI, reported a large exercise of company stock options on December 14, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Foskett, Vice Chairman at Fiserv, a company in the Financials sector, just exercised stock options worth 25,429 shares of FI stock with an exercise price of $41.75.

The Friday morning update indicates Fiserv shares down by 1.21%, currently priced at $133.38. At this value, Foskett's 25,429 shares are worth $2,330,059.

Get to Know Fiserv Better

Fiserv is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing, and loan processing, for U.S. banks and credit unions, with a focus on small and midsize banks. Through the merger with First Data in 2019, Fiserv also provides payment processing services for merchants. About 10% of the company's revenue is generated internationally.

Unraveling the Financial Story of Fiserv

Revenue Growth: Fiserv displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 7.86%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Insights into Profitability:

• Gross Margin: The company maintains a high gross margin of 61.13%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Fiserv's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.57.

Debt Management: With a below-average debt-to-equity ratio of 0.79, Fiserv adopts a prudent financial strategy, indicating a balanced approach to debt management.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 28.3 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 4.49 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 13.29, Fiserv presents an attractive value opportunity.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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The Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

A Deep Dive into Insider Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Fiserv's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.