ACI Worldwide (ACIW) Downgraded to “Sell” at Zacks Investment Research

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ACI Worldwide (NASDAQ:ACIW) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Monday.

According to Zacks, “ACI Worldwide, the Universal Payments (UP) company, powers electronic payments for more than 5,000 organizations around the world. More than 1,000 of the largest financial institutions and intermediaries as well as 300 of the leading global retailers rely on ACI to execute $14 trillion each day in payments. In addition, thousands of organizations utilize our electronic bill presentment and payment services. Through their comprehensive suite of software and SaaS-based solutions, they deliver real-time, any-to-any payments capabilities and enable the industry’s most complete omni-channel payments experience. “

A number of other equities analysts have also commented on ACIW. BidaskClub lowered shares of ACI Worldwide from a “strong-buy” rating to a “buy” rating in a research report on Wednesday, October 3rd. Credit Suisse Group raised their target price on shares of ACI Worldwide from $25.00 to $27.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 12th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and two have given a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus target price of $29.00.

Shares of NASDAQ:ACIW traded down $0.37 during trading on Monday, reaching $25.18. 452,030 shares of the company were exchanged, compared to its average volume of 603,053. The firm has a market cap of $2.96 billion, a PE ratio of 24.69, a price-to-earnings-growth ratio of 3.49 and a beta of 1.31. ACI Worldwide has a 12-month low of $20.23 and a 12-month high of $28.98. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.50 and a current ratio of 1.50.

ACI Worldwide (NASDAQ:ACIW) last issued its earnings results on Thursday, August 2nd. The technology company reported ($0.13) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.10) by ($0.03). The company had revenue of $235.00 million for the quarter, compared to analysts’ expectations of $232.23 million. ACI Worldwide had a return on equity of 6.30% and a net margin of 0.26%. The business’s revenue was down 2.3% compared to the same quarter last year. During the same period last year, the business posted ($0.25) earnings per share. Equities research analysts predict that ACI Worldwide will post 0.61 EPS for the current fiscal year.

In related news, Director Adalio T. Sanchez sold 8,000 shares of ACI Worldwide stock in a transaction that occurred on Friday, August 17th. The shares were sold at an average price of $26.95, for a total transaction of $215,600.00. Following the transaction, the director now directly owns 41,897 shares of the company’s stock, valued at $1,129,124.15. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Philip G. Heasley sold 21,667 shares of ACI Worldwide stock in a transaction that occurred on Thursday, August 23rd. The shares were sold at an average price of $28.00, for a total transaction of $606,676.00. The disclosure for this sale can be found here. Company insiders own 4.42% of the company’s stock.

A number of hedge funds have recently modified their holdings of ACIW. Copper Rock Capital Partners LLC purchased a new position in ACI Worldwide during the second quarter valued at approximately $25,288,000. Hood River Capital Management LLC purchased a new position in ACI Worldwide during the second quarter valued at approximately $19,848,000. River Road Asset Management LLC purchased a new position in ACI Worldwide during the second quarter valued at approximately $18,913,000. BlackRock Inc. increased its holdings in ACI Worldwide by 4.9% during the second quarter. BlackRock Inc. now owns 13,041,124 shares of the technology company’s stock valued at $321,724,000 after buying an additional 610,052 shares during the period. Finally, Artisan Partners Limited Partnership increased its holdings in ACI Worldwide by 24.3% during the second quarter. Artisan Partners Limited Partnership now owns 2,196,781 shares of the technology company’s stock valued at $54,195,000 after buying an additional 429,567 shares during the period.

About ACI Worldwide

ACI Worldwide, Inc provides software products and services for facilitating electronic payments to banks, intermediaries, merchants, and corporates worldwide. It offers UP Retail Payments solution that enables banks to accept, authorize, route, and secure payment transactions; and ACI Card and Merchant Management solutions, including credit, debit, smart card, and prepaid card issuance and management, as well as merchant account management and settlement.

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