Shift4 Payments Inc. [NYSE: FOUR] jumped around 2.94 points on Thursday, while shares priced at $89.02 at the close of the session, up 3.42%. The company report on July 22, 2021 that Shift4 Payments Announces Upsizing and Pricing of Offering of $550.0 Million of Convertible Notes Offering.
Shift4 Payments, Inc. (“Shift4”) (NYSE: FOUR), a leading independent provider of integrated payment processing and technology solutions, announced that it has upsized and priced an offering of $550.0 million aggregate principal amount of 0.50% convertible senior notes due 2027 (the “Notes”). The offering size was increased from the previously announced offering size of $500.0 million aggregate principal amount of Notes. The issuance and sale of the Notes are scheduled to settle on July 26, 2021, subject to customary closing conditions. Shift4 also granted the initial purchasers of the Notes an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $82.5 million aggregate principal amount of the Notes. The Notes are being offered in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act.
The Notes will be senior, unsecured obligations of Shift4. The Notes will bear interest at a rate of 0.50% per year, payable semi-annually in arrears on February 1 and August 1 of each year, beginning on February 1, 2022. The Notes will mature on August 1, 2027, unless earlier repurchased, redeemed or converted. Before May 1, 2027, noteholders will have the right to convert their Notes only upon the occurrence of certain events. From and after May 1, 2027, noteholders may convert their Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Shift4 will satisfy its conversion obligations by paying cash up to the aggregate principal amount of Notes to be converted and pay or deliver, as applicable, cash, shares of its Class A common stock (“Class A common stock”) or a combination of cash and shares of its Class A common stock, at Shift4’s election, in respect of the remainder. The initial conversion rate is 8.1524 shares of Class A common stock per $1,000 principal amount of Notes, which represents an initial conversion price of approximately $122.66 per share of Class A common stock. The initial conversion price represents a premium of approximately 42.5% over the public offering price in the concurrent public offering of Class A common stock described below. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events.
Shift4 Payments Inc. stock is now 18.06% up from its year-to-date (YTD) trading value. FOUR Stock saw the intraday high of $90.50 and lowest of $86.59 per share. The company’s 52-week high price is 104.11, which means current price is +42.43% above from all time high which was touched on 04/09/21.
Compared to the average trading volume of 933.82K shares, FOUR reached a trading volume of 3870092 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Shift4 Payments Inc. [FOUR]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for FOUR shares is $101.55 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on FOUR 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.
Wolfe Research have made an estimate for Shift4 Payments Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on May 07, 2021. The new note on the price target was released on March 11, 2021, representing the official price target for Shift4 Payments Inc. stock.
The Average True Range (ATR) for Shift4 Payments Inc. is set at 4.12, with the Price to Sales ratio for FOUR stock in the period of the last 12 months amounting to 9.02. The Price to Book ratio for the last quarter was 20.56, with the Price to Cash per share for the same quarter was set at 10.34. Price to Free Cash Flow for FOUR in the course of the last twelve months was 920.74 with Quick ratio for the last quarter at 7.10.
How has FOUR stock performed recently?
Shift4 Payments Inc. [FOUR] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.58. With this latest performance, FOUR shares dropped by -9.89% in over the last four-week period, additionally plugging by 26.59% over the last 6 months – not to mention a rise of 148.66% 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 FOUR stock in for the last two-week period is set at 42.29, with the RSI for the last a single of trading hit 40.79, and the three-weeks RSI is set at 44.34 for Shift4 Payments Inc. [FOUR]. The present Moving Average for the last 50 days of trading for this stock 93.59, while it was recorded at 89.25 for the last single week of trading, and 78.85 for the last 200 days.
Shift4 Payments Inc. [FOUR]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Shift4 Payments Inc. [FOUR] shares currently have an operating margin of -7.95 and a Gross Margin at +16.42. Shift4 Payments Inc.’s Net Margin is presently recorded at -2.40.
Return on Total Capital for FOUR is now -5.23, given the latest momentum, and Return on Invested Capital for the company is -1.74. Return on Equity for this stock declined to -7.77, with Return on Assets sitting at -1.41. When it comes to the capital structure of this company, Shift4 Payments Inc. [FOUR] has a Total Debt to Total Equity ratio set at 218.95. Additionally, FOUR Total Debt to Total Capital is recorded at 68.65, with Total Debt to Total Assets ending up at 55.48. Long-Term Debt to Equity for the company is recorded at 218.76, with the Long-Term Debt to Total Capital now at 68.59.
Reflecting on the efficiency of the workforce at the company, Shift4 Payments Inc. [FOUR] managed to generate an average of -$14,100 per employee. Receivables Turnover for the company is 8.52 with a Total Asset Turnover recorded at a value of 0.59.Shift4 Payments Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 7.10 and a Current Ratio set at 7.10.
Insider trade positions for Shift4 Payments Inc. [FOUR]
There are presently around $3,859 million, in the hands of institutional investors. The top three institutional holders of FOUR stocks are: VANGUARD GROUP INC with ownership of 3,256,808, which is approximately 3.1% of the company’s market cap and around 1.50% of the total institutional ownership; DURABLE CAPITAL PARTNERS LP, holding 2,881,952 shares of the stock with an approximate value of $256.55 million in FOUR stocks shares; and ALLIANCEBERNSTEIN L.P., currently with $235.11 million in FOUR stock with ownership of nearly 41.401% of the company’s market capitalization.
Positions in Shift4 Payments Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 123 institutional holders increased their position in Shift4 Payments Inc. [NYSE:FOUR] by around 11,246,535 shares. Additionally, 94 investors decreased positions by around 6,695,105 shares, while 17 investors held positions by with 25,407,041 shares. The mentioned changes placed institutional holdings at 43,348,681 shares, according to the latest SEC report filing. FOUR stock had 48 new institutional investments in for a total of 2,929,428 shares, while 36 institutional investors sold positions of 2,283,035 shares during the same period.