Top 20 Falling Stocks with Unusual Volume

6. Global Payments Inc. (NYSE:GPN)

Global Payments Inc. operates as a software solutions and payment technology provider for check, card, and digital-based payments. The company operates in the Issuer Solutions and Merchant Solutions segments. The firm’s stock has been falling since the start of this year. The stock is down 16.55% in a week on a relative volume of 7.15!

Global Payments announced two definitive agreements on April 17. It announced the acquisition of Worldpay from GTCR and FIS, valued at $24.25 billion, including $1.55 billion of anticipated tax assets. This acquisition positions the firm as a leading merchant solutions provider. Global Payments and Worldpay, together, will serve over 6 million customers and process approximately 94 billion transactions. The other major deal is selling its Issuer Solutions business to FIS for $13.5 billion.

Chief executive officer Cameron Bready highlighted the importance of this acquisition for the company:

“Today marks a defining day for Global Payments and a pivotal milestone in our journey to become the worldwide partner of choice for commerce solutions. The acquisition of Worldpay and divestiture of Issuer Solutions further sharpen our strategic focus and simplify Global Payments as a pure play merchant solutions business with significantly expanded capabilities, extensive scale, greater market access and an enhanced financial profile.”

So why is GPN stock down significantly if it is firing on all cylinders? According to Bernstein analysts, the firm is exposed to recession risk while most of its peers are relatively immune. GPN mainly serves small businesses. In hard economic times, these businesses fail in large numbers. This risk is killing the short-term returns for investors, and until there is more clarity on the economy’s fate, it would be risky to take a position in this stock.