07. Fidelity National Information Services, Inc. (NYSE:FIS)
Number of Hedge Fund Holders: 59
Fidelity National Information Services, Inc. (NYSE:FIS) is a leading provider of financial technology solutions, catering to the needs of financial institutions, businesses, and developers worldwide. With operations segmented into Banking Solutions, Capital Market Solutions, and Corporate and Other segments, FIS offers an extensive range of services, including core processing, mobile and online banking, risk management, payment solutions, and wealth management.
Fidelity National Information Services, Inc. (NYSE:FIS) recent advancements in AI technology are noteworthy, particularly with the development of its Integrated Payables solution, which won the Best Business Payments Solution Award at the 2024 PayTech Awards USA. This solution employs automation and AI to streamline accounts payable processes, enhancing payment visibility and improving remittance detail. FIS Group President of Automated Finance, Seamus Smith, was also recognized for his leadership in steering the company towards next-generation solutions that significantly impact the $1.1 trillion business-to-business payments market.
Analysts have expressed optimism regarding Fidelity National Information Services, Inc. (NYSE:FIS) trajectory. On October 8, 2024, Barclays analyst Ramsey El-Assal raised the firm’s price target for FIS from $90 to $98 while maintaining an Overweight rating. This upward revision underscores the firm’s confidence in Fidelity National Information Services, Inc. (NYSE:FIS) growth potential, particularly following its operational restructuring and strategic focus on high-margin technology sales.
Heartland Mid Cap Value Fund stated the following regarding Fidelity National Information Services, Inc. (NYSE:FIS) in its Q2 2024 investor letter:
“Financials. In the second quarter, we started a new position in Fidelity National Information Services, Inc. (NYSE:FIS). FIS is one of three major suppliers of core processing software and services utilized by banks, capital market participants, and corporations. Whenever you log into your mobile phone banking app, pay a bill, or transfer money, there is a decent chance that FIS enables that transaction. Given the contractual nature of its business, 80% of the company’s revenues are recurring providing better revenue visibility and less profit volatility than sector peers.
FIS is a classic self-help story about strategic course correction and capital allocation. The company’s prior management team took a wrong turn by following competitor Fiserv into the merchant acquiring industry — the intermediaries that stand between credit card networks like Visa or Mastercard and card issuers like Capital One or Citi — when it overpaid for Worldpay in 2019. Rather than boosting FIS’s growth as planned, the acquisition was a distraction as software startups began taking share from incumbents, including Worldpay…” (Click here to read the full text)
