Deluxe (NYSE:DLX) Stock Price Down 14.3% After Earnings Miss

Deluxe Co. (NYSE:DLX) shares dropped 14.3% during trading on Thursday following a dissappointing earnings announcement. The company traded as low as $19.35 and last traded at $19.34. Approximately 66,425 shares traded hands during trading, a decline of 75% from the average daily volume of 268,940 shares. The stock had previously closed at $22.58.

The business services provider reported $0.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.80 by ($0.05). Deluxe had a return on equity of 21.15% and a net margin of 2.58%.

Deluxe Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, March 3rd. Investors of record on Tuesday, February 18th will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 5.99%. The ex-dividend date is Tuesday, February 18th. Deluxe’s payout ratio is 96.77%.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on DLX. StockNews.com lowered shares of Deluxe from a “strong-buy” rating to a “buy” rating in a research report on Thursday. Sidoti raised shares of Deluxe to a “hold” rating in a report on Thursday, January 30th.

Insider Activity

In related news, CEO Barry C. Mccarthy purchased 2,290 shares of Deluxe stock in a transaction dated Thursday, December 5th. The shares were acquired at an average price of $23.57 per share, for a total transaction of $53,975.30. Following the acquisition, the chief executive officer now directly owns 180,960 shares in the company, valued at approximately $4,265,227.20. The trade was a 1.28 % increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 4.23% of the company’s stock.

Hedge Funds Weigh In On Deluxe

A number of hedge funds have recently modified their holdings of the business. Smartleaf Asset Management LLC raised its stake in shares of Deluxe by 93.7% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,104 shares of the business services provider’s stock valued at $25,000 after acquiring an additional 534 shares during the period. Truvestments Capital LLC acquired a new stake in Deluxe in the 3rd quarter valued at approximately $32,000. Wilmington Savings Fund Society FSB purchased a new stake in Deluxe in the third quarter valued at approximately $36,000. FMR LLC lifted its stake in Deluxe by 57.2% during the third quarter. FMR LLC now owns 3,206 shares of the business services provider’s stock worth $62,000 after purchasing an additional 1,166 shares in the last quarter. Finally, KBC Group NV boosted its position in shares of Deluxe by 63.5% during the fourth quarter. KBC Group NV now owns 3,237 shares of the business services provider’s stock worth $73,000 after buying an additional 1,257 shares during the period. 93.90% of the stock is currently owned by hedge funds and other institutional investors.

Deluxe Price Performance

The company has a debt-to-equity ratio of 2.38, a current ratio of 0.92 and a quick ratio of 0.83. The firm has a market capitalization of $887.39 million, a price-to-earnings ratio of 16.17, a PEG ratio of 0.64 and a beta of 1.52. The stock has a 50 day moving average price of $22.70 and a two-hundred day moving average price of $21.29.

Deluxe Company Profile

Deluxe Corporation provides technology-enabled solutions to enterprises, small businesses, and financial institutions in the United States, Canada, and Australia. It operates through Merchant Services, B2B Payments, Data Solutions, and Print segments. The Merchant Services offers credit and debit card authorization and payment systems, as well as processing services primarily to small and medium-sized retail and service businesses.