Major Decision: John T. Turner Exercises Options, Realizing $264K At Global Payments

John T. Turner, Director at Global Payments GPN, reported a large exercise of company stock options on March 12, according to a new SEC filing.

What Happened: Turner, Director at Global Payments, made a strategic move by exercising stock options for 6,113 shares of GPN as detailed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission. The transaction value amounted to $264,876.

Global Payments shares are currently trading up by 1.1%, with a current price of $93.92 as of Thursday morning. This brings the total value of Turner’s 6,113 shares to $264,876.

Unveiling the Story Behind Global Payments

Global Payments is a leading provider of payment processing and software solutions and focuses on serving small and midsize merchants. The company operates in 30 countries and generates about one fourth of its revenue from outside North America, primarily in Europe and Asia. In 2019, Global Payments merged with Total System Services in an all-stock deal that gave Total System Services shareholders 48% of the combined company’s shares. The merger added issuer processing operations.

Breaking Down Global Payments’s Financial Performance

Revenue Growth: Over the 3 months period, Global Payments showcased positive performance, achieving a revenue growth rate of 3.35% as of 31 December, 2024. This reflects a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company maintains a high gross margin of 62.14%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Global Payments’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.26.

Debt Management: With a below-average debt-to-equity ratio of 0.75, Global Payments adopts a prudent financial strategy, indicating a balanced approach to debt management.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: Global Payments’s P/E ratio of 15.08 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a P/S ratio of 2.34 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Global Payments’s EV/EBITDA ratio at 8.54 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company’s market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Global Payments’s Insider Trades.

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