Euronet Worldwide (EEFT) Downgraded by Zacks Investment Research to “Hold”

Zacks Investment Research downgraded shares of Euronet Worldwide (NASDAQ:EEFT) from a buy rating to a hold rating in a report released on Friday.

According to Zacks, “Euronet Worldwide’s shares have gained in a year’s time, comparing favorably against its industry’s loss in the same time-frame. Its strong position is backed by constant expansions across the globe through strategic acquisitions, strong results of the Electronic Funds Transfer (EFT) and Money Transfer segments. Its revenues have been consistently growing over the past few years on the back of the company’s diversity across products and geographies. However, rising expenses, which have eroded earnings per share, remain a headwind for the company. The low margin of the company is another concern.”

Several other brokerages also recently commented on EEFT. Piper Jaffray Companies boosted their target price on Euronet Worldwide from $111.00 to $141.00 and gave the stock an overweight rating in a research note on Monday, October 1st. BidaskClub raised Euronet Worldwide from a hold rating to a buy rating in a research note on Tuesday, September 11th. DA Davidson boosted their target price on Euronet Worldwide from $114.00 to $140.00 and gave the stock a buy rating in a research note on Thursday, October 4th. Citigroup started coverage on Euronet Worldwide in a research note on Tuesday, October 9th. They set a buy rating and a $135.00 target price for the company. Finally, William Blair raised Euronet Worldwide from a market perform rating to an outperform rating in a research note on Monday, October 1st. Two investment analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the stock. Euronet Worldwide currently has an average rating of Buy and an average target price of $128.88.

EEFT traded down $1.58 on Friday, hitting $111.34. 393,637 shares of the stock were exchanged, compared to its average volume of 482,524. Euronet Worldwide has a 12 month low of $70.67 and a 12 month high of $121.93. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.55. The stock has a market capitalization of $5.82 billion, a price-to-earnings ratio of 25.71, a P/E/G ratio of 1.61 and a beta of 1.06.

Euronet Worldwide (NASDAQ:EEFT) last issued its earnings results on Thursday, October 18th. The business services provider reported $2.09 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $2.04 by $0.05. The firm had revenue of $714.50 million during the quarter, compared to the consensus estimate of $709.33 million. Euronet Worldwide had a return on equity of 24.13% and a net margin of 6.02%. Sell-side analysts anticipate that Euronet Worldwide will post 5.25 EPS for the current fiscal year.

In other Euronet Worldwide news, CEO Michael J. Brown sold 25,000 shares of the business’s stock in a transaction dated Friday, September 14th. The stock was sold at an average price of $101.94, for a total transaction of $2,548,500.00. Following the completion of the transaction, the chief executive officer now owns 1,486,118 shares of the company’s stock, valued at $151,494,868.92. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Michael J. Brown sold 50,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 12th. The shares were sold at an average price of $101.05, for a total value of $5,052,500.00. Following the completion of the transaction, the chief executive officer now directly owns 1,511,118 shares of the company’s stock, valued at approximately $152,698,473.90. The disclosure for this sale can be found here. In the last three months, insiders have sold 395,129 shares of company stock valued at $44,319,156. Insiders own 7.70% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in EEFT. TD Asset Management Inc. acquired a new position in shares of Euronet Worldwide in the second quarter valued at approximately $276,000. D.A. Davidson & CO. increased its stake in shares of Euronet Worldwide by 25.2% in the second quarter. D.A. Davidson & CO. now owns 4,726 shares of the business services provider’s stock valued at $396,000 after buying an additional 950 shares during the period. Sei Investments Co. increased its stake in shares of Euronet Worldwide by 5.0% in the second quarter. Sei Investments Co. now owns 182,643 shares of the business services provider’s stock valued at $15,301,000 after buying an additional 8,660 shares during the period. Boston Partners acquired a new position in shares of Euronet Worldwide in the second quarter valued at approximately $3,036,000. Finally, State Board of Administration of Florida Retirement System increased its stake in shares of Euronet Worldwide by 8.1% in the second quarter. State Board of Administration of Florida Retirement System now owns 63,192 shares of the business services provider’s stock valued at $5,294,000 after buying an additional 4,758 shares during the period.

Euronet Worldwide Company Profile

Euronet Worldwide, Inc provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. The company operates in three segments: Electronic Financial Transaction (EFT) Processing, epay, and Money Transfer.

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