A Closer Look at Information Services Corporation's Financials and Their Impact on Recent Stock Price Growth

Information Services' (TSE:ISC) stock has risen 24% in the last three months, and its ROE of 15% is considered high compared to the average industry ROE of 11%. However, the company's earnings growth has been flat in the past five years, and its net income growth is lower than the industry average. This suggests that there may be other factors preventing the company from growing, such as high dividend payouts or competitive pressures.

Fidelity National Information Services (NYSE:FIS) has experienced a notable increase in institutional holdings and positive analyst sentiment, according to recent filings with the Securities and Exchange Commission (SEC) and research reports. The company's stock has shown resilience, with a 24% rise in the last three months, and a return on equity (ROE) of 15%, which is higher than the industry average of 11% [1].

Institutional Investor Activity

Whittier Trust Co. of Nevada Inc. significantly increased its stake in FIS by 803.1% in the first quarter, owning 9,221 shares valued at $689,000 after purchasing an additional 8,200 shares [1]. AustralianSuper Pty Ltd also bought a new stake in the company, acquiring 10,645 shares worth approximately $795,000 [2]. Other institutional investors, such as Sierra Ocean LLC, YANKCOM Partnership, Kennebec Savings Bank, and CoreCap Advisors LLC, have also increased their holdings in FIS, highlighting growing interest in the company's stock.

Analyst Sentiment

Analysts have weighed in with various ratings and price targets for FIS. Royal Bank of Canada decreased its price target from $95.00 to $93.00 while setting an "outperform" rating [1]. Truist Financial set a "hold" rating with a target price of $84.00 [1]. UBS Group raised its target price from $81.00 to $84.00 with a "neutral" rating [1]. Stephens increased its target price from $90.00 to $100.00 with an "overweight" rating [1]. Despite these changes, the overall analyst consensus remains positive, with an average rating of "Moderate Buy" and an average target price of $90.95 [1].

Financial Performance and Growth

FIS reported earnings per share (EPS) of $1.21 for the latest quarter, exceeding the consensus estimate by $0.01 [1]. The company's revenue of $2.53 billion for the quarter was also in line with analyst expectations of $2.50 billion. However, FIS's earnings growth has been flat over the past five years, and its net income growth is lower than the industry average, which may indicate other factors hindering growth, such as high dividend payouts or competitive pressures.

Dividend Announcement

FIS recently announced a quarterly dividend of $0.40 per share, paid on June 24th, with an annualized dividend of $1.60 and a dividend yield of 2.02% [1]. The company's dividend payout ratio is currently 105.96%.

Conclusion

Fidelity National Information Services has seen significant institutional interest and positive analyst sentiment, with increased holdings and upgrades in recent quarters. The company's stock has performed well, with a 24% rise in the last three months and a high ROE. However, the flat earnings growth and lower net income growth compared to the industry average suggest that there may be other factors impacting the company's growth prospects.

References

[1] https://www.marketbeat.com/instant-alerts/filing-whittier-trust-co-of-nevada-inc-has-689000-stock-holdings-in-fidelity-national-information-services-inc-nysefis-2025-07-17/
[2] https://www.marketbeat.com/instant-alerts/filing-australiansuper-pty-ltd-invests-795000-in-fidelity-national-information-services-inc-nysefis-2025-07-20/