Deluxe (NYSE:DLX) Reaches New 12-Month Low on Disappointing Earnings

Deluxe Co. (NYSE:DLX) shares hit a new 52-week low during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $14.48 and last traded at $14.61, with a volume of 857210 shares changing hands. The stock had previously closed at $15.50.

The business services provider reported $0.75 earnings per share for the quarter, missing analysts’ consensus estimates of $0.80 by ($0.05). Deluxe had a return on equity of 21.33% and a net margin of 2.49%.

Deluxe Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 3rd. Stockholders of record on Tuesday, February 18th were given a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, February 18th. This represents a $1.20 annualized dividend and a dividend yield of 8.21%. Deluxe’s dividend payout ratio is currently 101.69%.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. Sidoti raised shares of Deluxe to a “hold” rating in a research note on Thursday, January 30th. StockNews.com downgraded shares of Deluxe from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, March 26th.

Insider Buying and Selling at Deluxe

In related news, CEO Barry C. Mccarthy purchased 3,926 shares of the firm’s stock in a transaction on Monday, March 10th. The shares were bought at an average price of $16.45 per share, for a total transaction of $64,582.70. Following the acquisition, the chief executive officer now directly owns 272,851 shares in the company, valued at $4,488,398.95. This trade represents a 1.46 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at this link. 5.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Principal Financial Group Inc. grew its position in Deluxe by 2.7% during the first quarter. Principal Financial Group Inc. now owns 220,472 shares of the business services provider’s stock valued at $3,486,000 after acquiring an additional 5,782 shares during the period. Sequoia Financial Advisors LLC grew its holdings in shares of Deluxe by 167.6% during the 1st quarter. Sequoia Financial Advisors LLC now owns 62,388 shares of the business services provider’s stock worth $986,000 after purchasing an additional 39,078 shares during the period. Security National Bank increased its position in Deluxe by 97.8% during the 1st quarter. Security National Bank now owns 3,567 shares of the business services provider’s stock worth $56,000 after purchasing an additional 1,764 shares in the last quarter. Ipsen Advisor Group LLC raised its holdings in Deluxe by 6.0% in the first quarter. Ipsen Advisor Group LLC now owns 25,024 shares of the business services provider’s stock valued at $396,000 after buying an additional 1,420 shares during the period. Finally, GAMMA Investing LLC lifted its position in Deluxe by 1,067.0% during the first quarter. GAMMA Investing LLC now owns 2,229 shares of the business services provider’s stock valued at $35,000 after buying an additional 2,038 shares in the last quarter. 93.90% of the stock is owned by hedge funds and other institutional investors.

Deluxe Trading Down 5.7 %

The firm’s 50 day simple moving average is $15.50 and its 200-day simple moving average is $19.52. The company has a market capitalization of $653.32 million, a PE ratio of 12.38, a P/E/G ratio of 0.52 and a beta of 1.41. The company has a quick ratio of 0.83, a current ratio of 0.98 and a debt-to-equity ratio of 2.36.

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.