Major Decision: Frank Bisignano Exercises Options, Realizing $17.65M At Fiserv

Frank Bisignano, Chairman and CEO at Fiserv FI, reported a large exercise of company stock options on March 25, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday revealed that Bisignano, Chairman and CEO at Fiserv in the Financials sector, exercised stock options for 159,636 shares of FI stock. The exercise price of the options was $112.87 per share.

The latest update on Wednesday morning shows Fiserv shares up by 0.36%, trading at $223.42. At this price, Bisignano's 159,636 shares are worth $17,647,759.

About Fiserv

Fiserv is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing, and loan processing, for US banks and credit unions, with a focus on small and midsize banks. Through the merger with First Data in 2019, Fiserv also provides payment processing services for merchants. About 10% of the company's revenue is generated internationally.

Financial Milestones: Fiserv's Journey

Revenue Growth: Fiserv's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 6.79%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Insights into Profitability:

• Gross Margin: Achieving a high gross margin of 61.55%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Fiserv's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.663121.

Debt Management: Fiserv's debt-to-equity ratio is below the industry average at 0.92, reflecting a lower dependency on debt financing and a more conservative financial approach.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 41.38 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 6.33 is above industry norms, reflecting an elevated valuation for Fiserv's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 16.82, Fiserv's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

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Why Insider Activity Matters in Finance

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Exploring Key Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Fiserv's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.