In a recent move, Guy Chiarello, the Chief Operating Officer of Fiserv Inc (NYSE:FI) (NASDAQ:FISV), has sold a significant amount of company stock, totaling over $3.6 million. The transactions, which took place on April 15th, involved the sale of Fiserv shares at prices ranging from $151.06 to $152.75.
Chiarello executed multiple trades, parting with 11,430 shares at an average price of $151.06, 6,482 shares at an average of $152.18, and 6,017 shares at an average of $152.75. The combined sales amounted to $3,632,143, reflecting a notable cash-out by the executive.
On the same day, Chiarello also acquired 23,929 shares of Fiserv common stock at a price of $46.97, amounting to a total of $1,123,945. These shares were acquired through the exercise of employee stock options, which were vested in three equal installments annually since January 1, 2015.
The transactions were conducted under a Rule 10b5-1 trading plan, which Chiarello had entered into on December 15, 2023, for estate and financial planning purposes. This plan allows corporate insiders to set up a predetermined schedule to buy or sell company stock to avoid accusations of insider trading.
Additionally, the filing revealed that Chiarello holds an indirect ownership interest in 37,381 Fiserv shares through The Denise Chiarello 2021 Trust, benefiting himself and his children. Chiarello serves as the trustee for this trust.
Investors and analysts closely monitor insider transactions as they provide insights into executives' perspectives on their company's future performance. Fiserv, a global provider of financial services technology, has yet to comment on these transactions.
InvestingPro Insights
In light of recent insider transactions at Fiserv Inc (NASDAQ:FISV), prospective investors may find InvestingPro's real-time data and analytics a valuable resource for making informed decisions. As of the latest metrics, Fiserv's market capitalization stands at a robust $86.34 billion, reflecting the company's significant presence in the financial services technology sector. Moreover, Fiserv's Price/Earnings (P/E) ratio is currently at 29.34, which aligns with the industry average, indicating a potentially fair valuation of the company's earnings.
InvestingPro Tips for Fiserv highlight the company's strong performance and potential for future growth. Notably, Fiserv has been profitable over the last twelve months, with a reported revenue of $19.09 billion and a gross profit margin of nearly 60%. This financial stability is further underscored by a significant price uptick of 38.98% over the last six months, suggesting a positive market sentiment towards the company's stock.
Additionally, while Fiserv does not currently pay a dividend, the company's stock has demonstrated low price volatility, which might appeal to investors seeking a stable investment. For those interested in a deeper analysis, InvestingPro offers a wealth of additional tips—there are 6 more InvestingPro Tips available at https://www.investing.com/pro/FISV. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the next earnings date approaching on April 23, 2024, and the fair value of Fiserv's stock estimated at $177.78 by InvestingPro, investors may want to keep a close watch on the company's performance in the upcoming financial disclosures.
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