Deluxe Corporation [NYSE: DLX] gained 12.20% on the last trading session, reaching $28.23 price per share at the time. The company report on July 30, 2020 that Deluxe Reports Solid Second Quarter 2020 Performance and Declares Regular Dividend.
Deluxe (NYSE: DLX), a Trusted Business Technology™ company, today reported operating results for its second quarter ended June 30, 2020.
“Deluxe delivered stronger than expected second quarter performance. Our cash flow from operations exceeded last year’s quarterly performance, enabling us to pay down $100 million on the revolving credit facility in July, and declare our regular dividend. Our reported revenue partially recovered from the April low, declining $84 million for the second quarter as compared to last year. We believe the company continued its historic sales-driven revenue growth from the first quarter, excluding our estimate of COVID-19 impact. GAAP margins stabilized and Adjusted EBITDA margins rebounded to our pre-COVID-19 range,” said Barry McCarthy, President & CEO of Deluxe. “Our sales-driven ‘One Deluxe’ transformation is working too. We signed 4 of our top 25 prospects and further built our already strong sales pipeline. Our robust financial health has proven to be a significant competitive advantage in these wins,” added McCarthy.
Deluxe Corporation represents 42.03 million in outstanding shares, while the company has a total market value of $1.05 billion with the latest information. DLX stock price has been found in the range of $26.16 to $29.00.
If compared to the average trading volume of 523.79K shares, DLX reached a trading volume of 9268570 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Deluxe Corporation [DLX]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DLX shares is $37.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DLX stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Buckingham Research have made an estimate for Deluxe Corporation shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on October 12, 2018. While these analysts kept the previous recommendation, Northland Capital raised their target price from $70 to $75. The new note on the price target was released on April 24, 2015, representing the official price target for Deluxe Corporation stock. On July 25, 2014, analysts increased their price target for DLX shares from 50 to 55.
The Average True Range (ATR) for Deluxe Corporation is set at 1.54, with the Price to Sales ratio for DLX stock in the period of the last 12 months amounting to 0.52. The Price to Book ratio for the last quarter was 2.50, with the Price to Cash per share for the same quarter was set at 8.32. Price to Free Cash Flow for DLX in the course of the last twelve months was 6.25 with Quick ratio for the last quarter at 1.80.
Trading performance analysis for DLX stock
Deluxe Corporation [DLX] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 36.84. With this latest performance, DLX shares gained by 24.97% in over the last four-week period, additionally sinking by -41.43% over the last 6 months – not to mention a drop of -36.13% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DLX stock in for the last two-week period is set at 69.88, with the RSI for the last a single of trading hit 80.56, and the three-weeks RSI is set at 64.01 for Deluxe Corporation [DLX]. The present Moving Average for the last 50 days of trading for this stock 23.39, while it was recorded at 23.88 for the last single week of trading, and 35.65 for the last 200 days.
Deluxe Corporation [DLX]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Deluxe Corporation [DLX] shares currently have an operating margin of +15.80 and a Gross Margin at +59.71. Deluxe Corporation’s Net Margin is presently recorded at -9.96.
Return on Total Capital for DLX is now 19.08, given the latest momentum, and Return on Invested Capital for the company is -12.07. Return on Equity for this stock declined to -26.91, with Return on Assets sitting at -9.42. When it comes to the capital structure of this company, Deluxe Corporation [DLX] has a Total Debt to Total Equity ratio set at 162.91. Additionally, DLX Total Debt to Total Capital is recorded at 61.96, with Total Debt to Total Assets ending up at 47.86. Long-Term Debt to Equity for the company is recorded at 160.65, with the Long-Term Debt to Total Capital now at 61.10.
Reflecting on the efficiency of the workforce at the company, Deluxe Corporation [DLX] managed to generate an average of -$35,816 per employee. Receivables Turnover for the company is 10.03 with a Total Asset Turnover recorded at a value of 0.95.Deluxe Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.80 and a Current Ratio set at 1.90.
Deluxe Corporation [DLX]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Deluxe Corporation posted 1.71/share EPS, while the average EPS was predicted by analysts to be reported at 1.59/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 7.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DLX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Deluxe Corporation go to 7.50%.
An analysis of insider ownership at Deluxe Corporation [DLX]
There are presently around $1,095 million, or 94.00% of DLX stock, in the hands of institutional investors. The top three institutional holders of DLX stocks are: BLACKROCK INC. with ownership of 5,014,840, which is approximately -1.737% of the company’s market cap and around 0.40% of the total institutional ownership; VANGUARD GROUP INC, holding 4,035,112 shares of the stock with an approximate value of $113.91 million in DLX stocks shares; and LSV ASSET MANAGEMENT, currently with $68.48 million in DLX stock with ownership of nearly 2.063% of the company’s market capitalization.
Positions in Deluxe Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 102 institutional holders increased their position in Deluxe Corporation [NYSE:DLX] by around 3,452,539 shares. Additionally, 141 investors decreased positions by around 4,765,658 shares, while 37 investors held positions by with 30,584,418 shares. The mentioned changes placed institutional holdings at 38,802,615 shares, according to the latest SEC report filing. DLX stock had 15 new institutional investments in for a total of 131,790 shares, while 61 institutional investors sold positions of 1,337,674 shares during the same period.