Deluxe (NYSE:DLX) Stock Price Down 14.3% Following Weak Earnings

Deluxe Co. (NYSE:DLX)’s share price dropped 14.3% 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 mid-day 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 EPS for the quarter, missing analysts’ consensus estimates of $0.80 by ($0.05). Deluxe had a net margin of 2.58% and a return on equity of 21.15%.

Deluxe Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 3rd. Stockholders of record on Tuesday, February 18th will be issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 6.13%. Deluxe’s dividend payout ratio (DPR) is presently 96.77%.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on DLX shares. Sidoti raised Deluxe to a “hold” rating in a research note on Thursday, January 30th. StockNews.com raised Deluxe from a “buy” rating to a “strong-buy” rating in a research report on Thursday, December 12th.

Insider Buying and Selling at Deluxe

In related news, CEO Barry C. Mccarthy acquired 2,290 shares of the business’s stock in a transaction dated Thursday, December 5th. The stock was bought at an average price of $23.57 per share, with a total value of $53,975.30. Following the acquisition, the chief executive officer now owns 180,960 shares in the company, valued at $4,265,227.20. This represents a 1.28 % increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 4.23% of the company’s stock.

Institutional Trading of Deluxe

Hedge funds have recently made changes to their positions in the business. Bank of Montreal Can lifted its stake in shares of Deluxe by 8.7% during the 2nd quarter. Bank of Montreal Can now owns 16,231 shares of the business services provider’s stock worth $365,000 after buying an additional 1,299 shares during the last quarter. Millennium Management LLC lifted its position in Deluxe by 249.9% during the second quarter. Millennium Management LLC now owns 169,473 shares of the business services provider’s stock worth $3,806,000 after acquiring an additional 121,042 shares during the last quarter. SG Americas Securities LLC bought a new stake in shares of Deluxe during the third quarter worth approximately $222,000. DekaBank Deutsche Girozentrale grew its position in shares of Deluxe by 378.0% in the third quarter. DekaBank Deutsche Girozentrale now owns 25,291 shares of the business services provider’s stock valued at $480,000 after purchasing an additional 20,000 shares during the last quarter. Finally, New York State Teachers Retirement System increased its stake in shares of Deluxe by 5.9% during the third quarter. New York State Teachers Retirement System now owns 76,563 shares of the business services provider’s stock worth $1,492,000 after purchasing an additional 4,277 shares during the period. 93.90% of the stock is owned by institutional investors and hedge funds.

Deluxe Stock Performance

The company has a fifty day moving average of $22.77 and a two-hundred day moving average of $21.30. The firm has a market capitalization of $866.32 million, a price-to-earnings ratio of 15.79, a PEG ratio of 0.64 and a beta of 1.52. The company has a debt-to-equity ratio of 2.38, a quick ratio of 0.83 and a current ratio of 0.92.

About Deluxe

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.