FIS Rises 5.2% on Binance Delisting, Institutional Buyers Pile In

FIS Gains 5.20% After Binance Delisting, Institutional Buying Spikes
Fidelity National Information Services, Inc. (NYSE:FIS) rose 5.20% since the announcement of its delisting by Binance. The stock's rally coincided with increased institutional interest, including a new stake of 492,456 shares by River Road Asset Management LLC according to the filing. Meanwhile, StaFi (FIS), one of the tokens being delisted, shares the ticker symbol with the financial services company, potentially causing confusion among investors as reported.

The delisting, part of Binance's efforts to prioritize market integrity, affects three altcoins, including Voxies (VOXEL), which climbed 5.83% in the same period. This move underscores the exchange's ongoing evaluation of assets against criteria such as development progress, liquidity, and regulatory compliance as detailed.

On the corporate side, FIS reported strong Q3 results, with $1.51 in earnings per share and $2.72 billion in revenue. The company set FY2025 guidance of 5.740–5.780 EPS, despite a lofty P/E ratio of 365.41.

Institutional Activity and Insider Moves

River Road Asset Management's acquisition valued at $39.1 million represents 0.09% ownership in FIS as disclosed. Other institutional players, including LPL Financial LLC and Federated Hermes Inc., also adjusted their stakes in the stock, signaling varied investor sentiment according to filings.

In insider activity, FIS director Jeffrey A. Goldstein purchased 889 shares at $67.66 per share, increasing his ownership by 7%. This purchase was disclosed in a filing with the SEC and aligns with broader institutional confidence in the stock.

Korea Investment CORP, however, reduced its stake by 14.8%, selling 38,901 shares in Q2 and ending the quarter with 224,032 shares valued at $18.24 million. This contrasts with Norges Bank's investment of $624.9 million, which took a 1.47% stake in the company.

Market Performance and Analyst Outlook

FIS opened at $65.77 on December 1, slightly above its 50-day moving average of $65.45 but below its 200-day average of $72.43. The stock's 52-week range spans $59.51 to $86.03. Analysts remain cautiously optimistic, with a consensus rating of "Moderate Buy" and an average price target of $85.41.

The company declared a $0.40 quarterly dividend, yielding 2.4% annually. However, this comes with an unusually high payout ratio of 592.59%, raising concerns about sustainability. FIS's financials also show a mixed balance sheet with a debt-to-equity ratio of 0.63 and a current ratio of 0.59.

What This Means for Investors

The Binance delisting has created a ripple effect, with both FIS the stock and StaFi (FIS) the altcoin experiencing price movements. Investors must remain cautious, as the delisting could reduce liquidity and affect market perception.

For FIS the company, strong Q3 earnings and institutional buying could support the stock despite its high valuation. Analysts from Wells Fargo and Stephens have upgraded or maintained overweight ratings, citing growth potential in financial technology. However, the high payout ratio and mixed analyst ratings suggest investors should watch for guidance clarity and potential earnings surprises.

Institutional ownership at 96.23% underscores the stock's appeal to professional investors, though the recent stake reduction by Korea Investment CORP highlights the need for vigilance in portfolio rebalancing. With FIS trading near its 52-week low, the current price may offer an entry point for long-term investors aligned with the company's strategic direction.