4. Fiserv, Inc. (NASDAQ:FISV)
Night Owl Capital’s Stake Value: $38.29 million
Percentage of Night Owl Capital’s 13F Portfolio: 6.71%
Number of Hedge Fund Holders: 65
Fiserv, Inc. (NASDAQ:FISV) is a Wisconsin-based Fortune 500 multinational company that offers services of financial technology and other financial solutions. The company has three segments: merchant acceptance, financial technology, and payments and network. The company caters to financial institutions, merchants, banks, corporations, healthcare institutes, and more.
According to the database of the 867 hedge funds tracked by Insider Monkey, 65 funds held stakes in Fiserv, Inc. (NASDAQ:FISV) worth $3.94 billion in the third quarter, down from 72 funds holding stakes worth $2.65 billion in the previous quarter.
On December 10, Evercore ISI analyst David Togut downgraded the stock from Outperform to In Line and lowered the price target from $161 to $101, citing the rising revenue and margin headwinds expectation in regards to the 3 U.S. merchant acquirers.
According to the third quarter filings, Night Owl Capital Management owned 352,906 shares in Fiserv, Inc. (NASDAQ:FISV) worth $38.29 million, representing 6.71% of the portfolio. The fund increased its activity in the company by 43%.
Fiserv, Inc. (NASDAQ:FISV) was mentioned in Madison Funds’ first-quarter 2021 investor letter. Here is what it said:
“This quarter we researched several new stock ideas, but because of high prices, acted on only one. Thus, a new portfolio name is Fiserv, with corporate headquarters in Brookfield, WI, just down I-94 from us. Fiserv is a technology company serving financial institutions (“FIs”) and retail merchants. It has two main business lines. In the first, it’s a market leader in outsourced IT solutions for banks and credit unions, online and mobile banking technology, digital money movement solutions, and card issuing services. Fiserv’s second core business is merchant acquiring and processing, where it’s a leader in providing a variety of solutions to help all types of merchants accept digital payments. They entered this business through the acquisition of First Data in 2019.
Within the first business, Fiserv’s software is critical to the daily operations of FI clients. Their solutions not only provide the vital central processing systems, but also enable services such as electronic bill pay and digital money transfers at both large institutions and local banks and credit unions alike. As such, it is an incredibly sticky business that is resilient through economic cycles. On the merchant acquiring side of Fiserv, they process trillions of dollars annually for millions of merchant clients. Their solutions cater to all types of merchants and optimize for seamless acceptance and high authorization rates while also limiting fraud. Similar to the IT outsourcing business, Fiserv’s merchant solutions are critical to their customers’ daily operations. Furthermore, we are especially encouraged by their investments in new solutions, particularly Clover and Carat. Clover is a small and midsize business merchant acquiring platform and Carat is an e-commerce acquiring platform. Both these products hit the bullseye in terms of the way people are interacting with the retail industry, and both are growing at above market rates, which we believe will sustain into the future…” (Click here to see the full text)
