ValueAct Capital Master Fund, a major holder of
Fiserv (FSV), recently added 1,000,000 shares. The buy increased the fund’s holdings by 7.3 percent, and came to a total cost of just under $92 million.
Over the past three years, insiders have generally been sellers of shares. That includes both directors and c-suite executives. Funds have tended to be large buyers of shares at the company.
Overall, insiders own just over 12.1 percent of the company.
Shares of the financial tech services company have shed about 30 percent in the past year. That’s about in-line with a similar drop in earnings, even if revenues grew at the company.
Revenues have held up, so the drop has sent shares from 73 times earnings to about 26 times earnings in the last year.
Action to take: Shares are still in a downtrend, so they may yet get cheaper. The stock yields 0.7 percent, a bit low for investors looking for income now. Investors can likely get a lower price on another drop in markets in the months ahead.
For traders, the continued downtrend makes the November $100 puts, going for about $3.20, look like an attractive bet here. Traders can likely grab mid-double-digit gains on the downside, then look to buy call options when the market looks ready to rally higher.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.