Worldpay, Inc. (WP) Shares Have Potential 62.63% Upside

Worldpay, Inc. (NYSE:WP) has been upgraded by BofA/Merrill, which now rates the stock as Buy versus Neutral prior rating , according to a note issued on October 03. Analysts at Mizuho, shed their negative views on September 12 by lifting it fromNeutral to Buy. Analysts at Raymond James, made their first call about the stock on June 15, recommending it is Strong Buy. Morgan Stanley, released new analyst coverage on January 22, calling the stock is Overweight.

Worldpay, Inc. (WP) hit an intraday high Thursday at $83.03. The shares finished at $83.01, after trading as low as $79.98 earlier in the session. It rose 1.05% in recent trade and currently has a stock-market value of $25.84B. Trading activity significantly weakened as the volume at ready counter decreased to 3,139,504 shares versus 3,900,300 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,911,465 shares. The stock is now 17.64% above against its bear-market low of $70.56 on February 09, 2018. It has retreated -24.68% since it’s 52-week high of $103.5 reached in October. Now the market price is up 15.08% on the year and up 12.86% YTD.

WP’s 50 day simple moving average (SMA 50) price is $90.84 and its 200-day simple moving average (SMA 200) price is $86.81. The company’s stock currently has a total float of 299.03M shares. Its weekly volatility is hovering around 3.18% and felt 3.29% volatility in price over a month. On the upside, the share price will test short term resistance at around $84.03. On a downside, the stock is likely to find some support, which begins at $80.98. The failure to get near-term support could push it to $78.96.

Separately, it has been reported that multiple insider activity took place at Worldpay, Inc. (WP). COO Heimbouch Mark L sold 29,676 shares for $80,681 in transaction occurred on 2018/09/24. After making this transaction, the COO owns a direct stake of 2,915,964 shares, worth $6,697,330, as per the last closing price. On 2018/09/04 Taylor Matt, EVP Gl Int Pmts&SMB eCommerce at WP, dumped 22,648 shares at an average price of $98.09 per share. The selling total is valued at $556,167.

Co-CEO, Jansen Philip had divested 130,908 shares for $376,568 through a trade on 2018/08/17. Following this activity, the insider holds 12,077,572 shares worth $31,258,910 as of recent close. Wall Street’s most bullish Worldpay, Inc. (NYSE:WP) analysts are predicting the share price to blow past $135 per share during the next 12 months. The current median share price forecast by them is $110, suggesting that the stock could increase 32.51% in that time frame. The average price target of $110.39 calls for a nearly 32.98% increase in the stock price.

Moreover, it trades for 17.7 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.39x price/book and 6.56x price/sales. Compared to others, Worldpay, Inc. is in a different league with regards to profitability, having net margins of -4%. To put some perspective around this, the industry’s average net margin is 8.84%. WP’s ROE is -2%, which is also considerably worse than the industry’s ROE of 13.14%. It’s also very liquid in the near term, with a current ratio of 1. The stock has a debt/capital of 0.77.

WP last reported earnings on November 08, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $1.05 per share, -46.43% change on the same period last year. That was better than consensus for $1.03. Revenue for the recent quarter stood at $1.02 billion, up 84% on last year and below the $1.02 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.04 billion to $1.06 billion, which should be compared with $611.02 million generated last year. EPS is seen in a range of $1.05 to $1.11, against the $1 reported a year ago.