Aci Worldwide Stock Fair Value – WCM Investment Management LLC reduces stake in ACI Worldwide, by 6.5% in third quarter
November 16, 2024
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The company offers a wide range of products and services, including digital banking, merchant payments, and fraud prevention solutions. ACI ($NASDAQ:ACIW) Worldwide’s stock is listed on the NASDAQ exchange under the ticker symbol ACIW and has been steadily growing over the years. Investment management firms like WCM Investment Management LLC play a crucial role in the stock market by actively managing their clients’ investments. These firms are required to file a quarterly report, known as a 13F filing, with the Securities and Exchange Commission (SEC). This report discloses the firms’ investment holdings, including any changes in their positions. In its most recent 13F filing, WCM Investment Management LLC disclosed that it reduced its stake in ACI Worldwide, Inc. by 6.5% in the third quarter. This means that the firm sold off a portion of its shares in ACI Worldwide during this period. While the exact reason for this move is unknown, it could indicate that WCM Investment Management LLC has lost confidence in the company’s performance or has found better investment opportunities elsewhere. This reduction in stake by WCM Investment Management LLC could potentially be seen as a negative signal by other investors, causing them to sell off their shares as well.
However, it’s important to note that a single 13F filing does not provide a complete picture of a firm’s investment strategy and should not be solely relied upon when making investment decisions. In fact, the company reported strong third-quarter results with a revenue increase of 6% year-over-year.
Additionally, they also announced the acquisition of Western Union’s Speedpay U.S. domestic bill pay business, which could potentially drive future growth for the company. In conclusion, while WCM Investment Management LLC’s reduction in stake may raise some concerns for investors, it is important to look at the bigger picture and consider other factors that may affect ACI Worldwide’s stock. With a strong track record of delivering innovative payment solutions and recent positive developments, ACI Worldwide remains a promising player in the global payment industry.
Analysis – Aci Worldwide Stock Fair Value
As an analyst at GoodWhale, I have carefully examined the fundamentals of ACI WORLDWIDE and have determined that the intrinsic value of its shares is approximately $31.9. This value has been calculated using our proprietary Valuation Line, which takes into account various financial metrics and market trends. Currently, the stock of ACI WORLDWIDE is trading at $55.82, which indicates that it is overvalued by approximately 74.9%. This means that the market price of the stock is significantly higher than its intrinsic value, making it a potentially risky investment. It is important for investors to be aware of the intrinsic value of a stock before making any investment decisions. While market fluctuations and short-term trends may cause a stock to deviate from its intrinsic value, overvaluation can lead to potential losses in the long run. Based on our analysis, it seems that the current market price of ACI WORLDWIDE stock is not justified by its fundamentals. Investors should carefully consider this information before investing in this company and weigh the potential risks against potential gains. As always, it is important to conduct thorough research and seek professional advice before making any investment decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aci Worldwide. More…
| Total Revenues | Net Income | Net Margin |
| 1.45k | 121.51 | 8.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aci Worldwide. More…
| Operations | Investing | Financing |
| 168.52 | -37.78 | -111.55 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aci Worldwide. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.44k | 2.12k | 12.18 |
Key Ratios Snapshot
Some of the financial key ratios for Aci Worldwide are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.9% | 15.0% | 15.6% |
| FCF Margin | ROE | ROA |
| 9.0% | 11.1% | 4.1% |
Peers
ACI Worldwide Inc competes with Newgen Software Technologies Ltd, Rs2 Software PLC, and Nuix Ltd in the software development industry. The company has a strong product portfolio and a robust delivery model. ACI Worldwide Inc has a strong market presence and a strong competitive advantage.
– Newgen Software Technologies Ltd ($BSE:540900)
Newgen Software Technologies Ltd is a global Business Process Management (BPM), Enterprise Content Management (ECM), Customer Communication Management (CCM) and Newgen OmniScan platform provider. It has a market cap of 25.06B as of 2022 and a Return on Equity of 14.33%. The company has a strong focus on innovation and has over 3,000 customers in over 100 countries.
– Rs2 Software PLC ($LTS:0MVH)
As of 2022, Rs2 Software PLC has a market capitalization of 262.44 million and a return on equity of 6.7%. The company provides software solutions for the retail industry, including point-of-sale, e-commerce, and customer relationship management systems. Rs2 Software PLC was founded in 2001 and is headquartered in London, England.
– Nuix Ltd ($ASX:NXL)
Nuix Ltd is a technology company that provides software for managing and analyzing data. The company has a market capitalization of 191.98 million as of 2022 and a return on equity of 3.75%. Nuix’s products are used by organizations around the world to investigate data breaches, conduct e-discovery, and manage digital evidence. The company’s software helps customers to make sense of large and complex data sets, enabling them to make better decisions and improve their operations.
Summary
WCM Investment Management LLC reduced its stake in ACI Worldwide, Inc. during the third quarter, leading to a drop in the stock price on the same day. This move suggests that WCM may have had a negative outlook on the company’s performance and decided to trim its holdings. This could be due to a variety of factors such as financial data, industry trends, or overall market conditions.
Investors should take note of this change and continue to monitor ACI Worldwide for further developments. It is important to consider various analysis and factors before making any investment decisions.
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