Buying Shift4 Payments Inc. (FOUR) Stock Is A Smart Move Today?

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Shift4 Payments Inc. (NYSE:FOUR) traded with an addition of $2.69 to close at $56.14 on Thursday, an upside of 5.04 percent. An average of 686,515 shares of common stock have been traded in the last five days. There was a gain of $2.97 in the past week, and it reached a new high 7 times over the past 12 months. The last 20 days have seen an average of 959,844 shares traded, while the 50-day average volume stands at 1,129,177.

FOUR stock has increased by 23.93% in the last month. The company shares reached their 1-month lowest point of $42.79 on 11/30/22. With the stock rallying to its 52-week high on 04/04/22, shares of the company touched a low of $29.39 and a high of $66.86 in 52 weeks. It has reached a new high 7 times so far this year and lost -7.73% or -$1.62 in price. In spite of this, the price is down -16.03% from the 52-week high.


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Insider Transactions

FOUR stock investors should be aware that Shift4 Payments Inc. (FOUR) stock had its last reported insider trading activity 13 days ago on Dec 16. In this transaction, the insider spent $79,215. Director, Goldsmith-Grover Sarah, disposed of 1,200 shares at a price of $52.06 on Dec 15. The insider now owns more than $62,472 worth of shares. Prior to that, Director Goldsmith-Grover Sarah went on to Sale 480 shares at $46.70 each on Nov 18. An amount of $22,416 was transacted.

Valuation Metrics

Shift4 Payments Inc. (FOUR) has a trailing price-to-earnings (P/E) ratio of 135.66. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.33, the price-to-book (PB) ratio at 14.56, and the price-to-cash flow ratio at 41.31.

Financial Health

The quick ratio of Shift4 Payments Inc. for the three months ended June 29 was 3.30, and the current ratio was 3.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 5.75 and a total debt to equity ratio of 0.00 for the quarter ending June 29. Its gross profit as reported stood at $278.4 million compared to revenue of $1.37 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Shift4 Payments Inc.’s return on assets was 1.50%.

Earnings Surprise

For the three-month period that ended June 29, Shift4 Payments Inc. had $1.74 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $43.1 million in the quarter, while revenues were grew 121.35%. The analyst consensus anticipated Shift4 Payments Inc.’s latest quarter earnings to come in at $0.24 per share, but it turned out to be $0.33, a 37.50% surprise. For the quarter, EBITDA amounted to $98.2 million. Shareholders own equity worth $82.46 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Shift4 Payments Inc. (FOUR) price momentum. RSI 9-day as of the close on 28 December was 74.06%, suggesting the stock is Overbought, with historical volatility in this time frame at 31.50%.

As of today, FOUR’s price is $54.11 +5.57% or $2.97 from its 5-day moving average. FOUR is currently trading +21.52% higher than its 20-day SMA and +19.33% higher than its 100-day SMA. However, the stock’s current price level is +17.61% above the SMA50 and +8.48% above the SMA200.

The stochastic %K and %D were 87.67% and 87.57%, respectively, and the average true range (ATR) was 2.60. With the 14-day stochastic at 94.30% and the average true range at 2.75, the RSI (14) stands at 67.81%. The stock has reached 1.08 on the 9-day MACD Oscillator while the 14-day reading was at 1.57.

Analyst Ratings

The consensus rating for Shift4 Payments Inc. (FOUR) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell FOUR, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 12 others rate it as a “buy”.

What is FOUR’s price target for the next 12 months?

Analysts predict a range of price targets between $32.00 and $97.00, with a median target of $57.00. Taking a look at these predictions, the average price target given by analysts for Shift4 Payments Inc. (FOUR) stock is $58.71.

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