Acquisition Talk, Analyst Upgrade Boost TSYS’ Stock

What's Next In Payments®
12:56 PM EDT May 27th, 2012

It was a big week for Total System Services Inc. (TSYS), as both stock analysts and the company’s own executives inspired investor confidence.

On Tuesday, TSYS Executive Vice President Paul Todd told analysts about the company’s aspirations “to be the leading global payments provider,” according to American Banker. Those aspirations include plans for a major U.S. acquisition. To that end, Avondale Partners’ Peter Heckmann speculated that Heartland Payment Systems and Mercury Payment Systems are likely on TSYS’ list of “between 20 and 30” considerations, according to the report.

Combined, the week’s events pushed TSYS shares up nearly eight percent, to $23.56 a share at Friday’s close, near a new 52-week high.

Elsewhere in the markets — and in a week where the Consumer Financial Protection Bureau put the spotlight on prepaid — Green Dot Corp. (NYSE: GDOT) enjoyed a substantial boost to its stock price, with a gain of 7.61 percent over five days. The stock now stands at a per-share price of $21.91 — up for the week, but still down near its 52-week low of $20.19.

The week’s hardest hit payment stock was VeriFone’s. An earnings release after Thursday’s market close revealed a 62 percent over-the-year increase in quarterly revenues, but restructuring and acquisition-related costs pushed earnings down 43 percent. A Seeking Alpha report published on May 25 suggests an aggressive acquisition agenda being led by CEO Douglas Bergeron is making investors nervous, but Bergeron is insistent that recent investments will pay off with more earnings growth.

Updates to each of PYMNTS.com’s Stock Indices are published below.


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  Acquirer/
Processor
Network POS Equipment/
Software
Bank Payment Remittance Prepaid Issuer All Payments
Closing 118.93 159.12 115.99 98.27 89.00 47.58 119.26
Weekly Gain (#) 5.23 5.71 -4.84 0.81 1.88 2.68 2.37
Weekly Gain (%) 4.60% 3.72% -4.00% 0.83% 2.16% 5.98% 2.03%

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