Latest news with #Worldpay
Yahoo
4 days ago
- Business
- Yahoo
Multiple Factors Pulled Down Global Payments (GPN) in Q2
Oakmark Funds, advised by Harris Associates, released its 'Oakmark Fund' second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund underperformed its benchmark, the S&P 500 Index, but outperformed the benchmark since inception. The largest contributors to performance were financials and consumer discretionary, at the sector level, while health care and consumer staples detracted. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Oakmark Fund highlighted stocks such as Global Payments Inc. (NYSE:GPN). Global Payments Inc. (NYSE:GPN) provides payment technology and software solutions for card, check, and digital-based payments. The one-month return of Global Payments Inc. (NYSE:GPN) was 8.53%, and its shares lost 18.29% of their value over the last 52 weeks. On July 16, 2025, Global Payments Inc. (NYSE:GPN) stock closed at $82.66 per share, with a market capitalization of $20.159 billion. Oakmark Fund stated the following regarding Global Payments Inc. (NYSE:GPN) in its second quarter 2025 investor letter: "Global Payments Inc. (NYSE:GPN) was the top detractor during the quarter. The U.S.-headquartered transaction and payment processing company's shares sold off during the period as investors reacted negatively to an announced acquisition of Worldpay and divestiture of the Issuer Solutions business. We believe investors underappreciate the long-term strategic and financial merits of this transaction. Moreover, we are pleased that management is still committed to returning a substantial amount of capital to shareholders. We believe Global Payments can return close to one-third of its current market cap to shareholders over the next three years and that capital returns could grow meaningfully from there as the benefits of the Worldpay deal are fully realized." A payment terminal in action with customers apart of the experience. Global Payments Inc. (NYSE:GPN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Global Payments Inc. (NYSE:GPN) at the end of the first quarter, which was 71 in the previous quarter. While we acknowledge the potential of GPN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Global Payments Inc. (NYSE:GPN) and shared the list of best tech stocks to buy under $100. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Finextra
6 days ago
- Business
- Finextra
Activist investor builds stake in Global Payments
Global Payments shares rose on Wednesday after media reports that activist investor Elliott Management has built up a stake in the fintech. 0 In April, Global Payments agreed a blockbuster $22.7 billion deal to acquire Worldpay from GTRC and FIS while offloading its Issuer Solutions business to FIS for $13.5 billion. Global Payments had previously been divesting assets and buying back stock. The change in strategy sent shares south, with the company's stock down around 30% so far this year. Th agreement is expected to close in the first half of 2026 and does not require a shareholder vote. Yet the news - first reported by the Financial Times - that Elliott has secured a "sizable" stake in Global Payments still sent the share price up by around five per cent in morning trading on Wednesday. The exact size of the stake and Elliott's demands have not been disclosed.
Reuters
6 days ago
- Business
- Reuters
Elliott builds stake in Global Payments after Worldpay deal, source says
July 15 (Reuters) - Activist hedge fund Elliott Investment Management has built a sizable stake in Global Payments (GPN.N), opens new tab, less than three months after the financial technology company inked one of the year's biggest acquisitions for payment processing company Worldpay, a person familiar with the matter said on Tuesday. The size of Elliott's stake and what the hedge fund may want the company to change could not be learned. A representative for Global Payments did not immediately respond to a request for comment while a representative for Elliott declined to comment. Elliott, one of the world's biggest activist investors, swooped on Global Payments as the company seeks to concentrate solely on processing payments for businesses. Atlanta-headquartered Global Payments paid $24.3 billion in a three-way deal to buy Worldpay from FIS (FIS.N), opens new tab and private equity firm GTCR while selling its issuer solutions unit, which offers card processing and account services, to FIS. Global Payments' stock jumped 5.4% in after-hours trading on news Elliott now owns a stake, first reported on Tuesday by the Financial Times. The jump comes after investors reacted negatively in April to the acquisition, briefly pushing the stock price down 20% to its lowest level in a decade. It has recovered some ground since then, leaving the company with a market value of $19 billion. Investors punished the company for the takeover after management had previously promised to focus on divestments and returning cash to shareholders. The deal does not require a shareholder vote, which will prevent Elliott from trying to block the deal altogether. Over the last years, Elliott, with nearly $73 billion in assets, has become known as the world's most formidable corporate agitator, taking on brand name companies including Southwest Airlines (LUV.N), opens new tab, Honeywell (HON.O), opens new tab, BP (BP.L), opens new tab and Phillips 66 (PSX.N), opens new tab. In the first half of 2025, Elliott deployed nearly $9 billion in activist campaigns and won seven board seats at companies including Charles River(CRL.N), opens new tab and Phillips 66.
Yahoo
6 days ago
- Business
- Yahoo
Global Payments shares rise on reports of Elliott stake following Worldpay deal
- Shares of Global Payments (NYSE:GPN) jumped by more than 6% in premarket U.S. trading on Wednesday after media reports said activist investor Elliott Investment Management had built a stake in the financial technology group. Citing sources familiar with the matter, media reports said Elliott's stake in Atlanta-based Global Payments was "sizable." However, Reuters added that its exact size -- along with what exactly Elliott hopes to change about the company -- remained unclear. The Financial Times was the first to report the story. Elliott's reported move comes less than three months after Global Payments paid $24.3 billion in a deal to purchase Worldpay from FIS and private equity firm GTCR. Global Payments' card processing and account services division was sold to FIS as part of the transaction, which is anticipated to close in the first half of 2026. Analysts widely took issue with the deal, noting that Global Payments executives had previously outlined plans to focus on divesting assets and returning cash to shareholders. Crucially, the three-way deal does not require a shareholder vote, meaning that Elliott will be unable to block it. Global Payments' stock price has slid by more than 30% so far this year, although it has edged up by a little over 1% in the last one-month period. Analysts at Jefferies said that while the stock is "objectively cheap," trading at less than six times forward earnings estimates, they do not "see an obvious activist playbook" behind Elliott's stake. Elliott's prior involvement in payments group PayPal (NASDAQ:PYPL) was focused on cost-cutting and improved capital allocation, but balance sheet constraints and elevated margins mean that neither of these are "potential levers" the activist investor could use with Global Payments, the analysts argued. "We struggle to see what could be done through the traditional activist lens," they said. Related articles Global Payments shares rise on reports of Elliott stake following Worldpay deal These Under-the-Radar Stocks Offer Better Risk-Reward Ratio Than Nvidia Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names
Yahoo
15-07-2025
- Business
- Yahoo
Elliott builds stake in Global Payments after Worldpay deal, Financial Times reports
(Reuters) -Activist hedge fund Elliott Management has built a significant stake in Global Payments following the payment processor's deal for Worldpay, the Financial Times reported on Tuesday. Global Payments had in April agreed to buy rival Worldpay from FIS and private equity firm GTCR for $24.25 billion in a three-way deal. Shares of Global Payments had closed down 17.4% after the deal was announced. They were up about 6% in extended trading on Tuesday. Global Payments and Elliott Management did not immediately respond to Reuters' requests for comment.
