05. Global Payments Inc. (NYSE:GPN)
Number of Hedge Fund Holders: 66
Global Payments Inc. (NYSE:GPN) is a key player in the payment technology and software solutions industry, operating through its Merchant Solutions, Issuer Solutions, and Business & Consumer Solutions segments. The company’s Q2 2024 earnings beat expectations, reporting an EPS of $2.93, slightly above the anticipated $2.91, reflecting strong operational performance across its diverse portfolio. The Merchant Solutions segment remains a standout, delivering high single-digit organic growth driven by robust demand for integrated software and point-of-sale (POS) solutions. The successful integration of EVO Payments has enhanced the company’s capabilities, particularly in embedded payments and commerce enablement solutions, which are seeing accelerated adoption. The segment also benefits from innovative offerings like the PROFAC solution, which has shown substantial growth in active merchants and merchant volumes.
Issuer Solutions also performed well, with a notable increase in accounts on file and strong execution in cross-selling value-added services like fraud prevention and virtual card solutions. The segment’s ability to manage and simplify card portfolios for financial institutions positions Global Payments Inc. (NYSE:GPN) as a leader in the sector, particularly as it continues to expand its addressable market through modernization efforts. Furthermore, Global Payments Inc. (NYSE:GPN) is strategically expanding its international presence, with significant progress in the European market, including key partnerships in the EV charging sector and acquisitions aimed at strengthening its distribution capabilities in the UK. The company’s diversified revenue streams, ongoing investment in technology, and global expansion efforts underscore its robust fundamentals, making it a compelling investment in the payment technology space.
In the second quarter of 2024, there were 66 hedge funds holding positions in Global Payments Inc. (NYSE:GPN), as compared to 52 in the previous quarter according to Insider Monkey’s database. The total value of these holdings is approximately $3.67 billion. Richard S. Pzena’s Pzena Investment Management held the largest stake among these hedge funds during this period.
Weitz Investment Management Partners III Opportunity Fund stated the following regarding Global Payments Inc. (NYSE:GPN) in its Q2 2024 investor letter:
“Global Payments Inc. (NYSE:GPN) reversed its first-quarter gains, becoming the Fund’s top detractor for the quarter and second leading detractor year-to-date. Investor skepticism remains entrenched despite consistent operational execution. Current results are partially muddied by the moving parts of divestitures and positive synergies from the acquisition of former competitor EVO Payments that have yet to develop, leading many investors to adopt a “wait and see” approach in advance of an expected Investor Day later this year.”
