Shift4 Payments Inc. [NYSE:FOUR] shares are showing an active tape with a current price of $61.63 on Friday.
Shift4 Payments Inc. is in the Technology sector under the Software – Infrastructure industry. This week, we are watching the stock hit price per sales of 5.80.
For the year, the stock is trading 66.10% and the five-day change stands at 8.07%. As a point of reference, the S&P 500 is trading 1.11% YTD.
The Price is right
Holding a Market Cap of $4.28 billion, Shift4 Payments Inc. has seen a trading range over the last year of $30.00-$56.20.
For the last five days, FOUR is up from its last closing price. The average shares trading hands each day is 714.84K, with average 10-day volume coming in at 0.78 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for FOUR. When we apply the Elder Force Index to Shift4 Payments Inc., we are seeing an Elder Force Indicator number of 3829357.92.
The recent performance of the stock is another area that can tell traders how to proceed. FOUR is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 97.91.
In the last quarter, FOUR made a profit of 32.3 million. In addition, the company has operating cash flow of $10.5 million.
Looking at popular technical indicators, the company’s 5-day moving average is 55.73 compared to the 50-day moving average of 49.15. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. FOUR currently holds a 9-day RSI of 88.83%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. FOUR’s 9-day MACD is 3.78.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
Regarding institutional holdings, Price (T.Rowe) Associates Inc owns 8.06%, while the second top holder, Durable Capital Partners LP, currently owns 7.11%.
Over the last six months, insiders have sold 1,473,070 with the most recent transaction from Searchlight Capital Partners I, 10% Owner, with a sell at price 46.68 per share.
Overall, the recommended rating for FOUR is Moderate Buy. Currently, the company has 9 analysts watching the stock, and the average quarterly earnings estimate is 0.01. Quarterly revenue estimates are averaging 209.67M with the high estimate reaching 222.57M and the low at 198.5M.
To review, the current 1-year target estimate is sitting at 52.72, while the current price 61.63. Based on this, we expect some pullback on the stock over time given our above analysis.