Deluxe Co. (NYSE: DLX – Get Rated) was the target of a sharp drop in short interest in September. Short interest totaled 1,700,000 shares as of Sept. 15, a decrease of 15.4% from 2,010,000 shares as of Aug. 31. Based on the average daily trading volume of 230,500 shares, the average daily coverage ratio is currently 7.4 days.
Luxury shares fell 3.7%
DLX shares were down 64 cents at $16.65 in Friday’s trading session. The company’s trading volume was 430,511 shares, compared with its average volume of 327,223 shares. Deluxe’s 52-week low was $16.47 and its 52-week high was $38.71. The company’s 50-day moving average is $20.76 and its 200-day moving average is $23.92. The stock has a market cap of $717.28 million, a price-to-earnings ratio of 12.52, and a beta of 1.50. The company’s gearing ratio is 2.71, its quick ratio is 0.88, and its current ratio is 0.95.
Deluxe (NYSE: DLX – Get Rating) last reported earnings results on Thursday, Aug. 4. The business services provider reported earnings per share (EPS) of $0.99 for the quarter, missing the consensus estimate of $1.05 ($0.06). Deluxe’s return on equity was 30.24% and its net profit margin was 2.61%. The company’s revenue for the quarter was $563 million, compared with the consensus estimate of $528.25 million. In the same quarter last year, the company reported earnings of $1.25 per share. The company’s quarterly revenue rose 17.7% year over year.
Luxe declares dividend
The company also recently announced a quarterly dividend, which was paid on Tuesday, September 6. Shareholders of record on Monday, August 22 received a dividend of $0.30 per share. This translates to an annualized dividend of $1.20 and a dividend yield of 7.21%. The ex-dividend date for this dividend is Friday, August 19. Deluxe currently has a payout ratio of 90.23%.
Institutional investors weigh luxury
Large investors have recently bought and sold the company’s stock. Vanguard Group Inc. increased its stake in Deluxe by 1.6% in the first quarter. Vanguard Group Inc. now owns 4,638,914 shares of the business services provider’s stock, valued at $140,281,000, after purchasing an additional 73,156 shares in the previous quarter. American Century Companies Inc. increased its stake in Deluxe by 1.0% in the first quarter. American Century Companies Inc. now owns 2,775,259 shares of the business service provider’s stock, valued at $83,924,000, after purchasing an additional 26,432 shares during the period. State Street Corp increased its position in Deluxe stock by 8.2% in the second quarter. State Street now owns 1,752,190 shares of the business services provider’s stock, valued at $37,970,000, after purchasing an additional 133,131 shares in the previous quarter. Goldman Sachs Group Inc. increased its 3.4% stake in Deluxe in the first quarter. Goldman Sachs Group Inc. now owns 1,412,257 shares of the business services provider’s stock, valued at $42,707,000, after purchasing an additional 47,094 shares during the period. Finally, William Blair Investment Management LLC added 11.1% to its Deluxe stock in the fourth quarter. William Blair Investment Management LLC now owns 1,237,506 shares of the business services provider’s stock, valued at $39,736,000, after purchasing an additional 123,284 shares in the previous quarter. 89.54% of the stock is currently held by institutional investors.
Wall Street analysts predict growth
Several research firms have recently commented on DLX. Cowen lowered his price target on Deluxe stock to $36.00 from $42.00 in a research note Friday, Aug. 5. Cowen cut its price target on Deluxe from $42.00 to $36.00 in a research note Friday, Aug. 5.
Luxury Company Profile
(get a rating)
Deluxe Corporation provides technology-enabled solutions to enterprises, small businesses and financial institutions in the United States, Canada, Australia, South America and Europe. It operates through four segments: Payments, Cloud Solutions, Promotional Solutions, and Checks. Company provides treasury management solutions, including remittance and lockbox processing, remote deposit capture, accounts receivable management, payment processing and paperless treasury management solutions, as well as payment exchange, fraud and security services; web hosting and design services, data Driven marketing solutions and hosted solutions such as digital engagement, logo design, financial institution earnings reporting and business registration services.
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