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

Deluxe Co. (NYSE:DLX - Get Free Report) traded down 14.3% during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $19.35 and last traded at $19.34. 66,425 shares were traded during mid-day trading, a decline of 75% from the average session 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 the consensus estimate of $0.80 by ($0.05). Deluxe had a net margin of 2.49% and a return on equity of 21.33%.

Deluxe Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 3rd. Shareholders of record on Tuesday, February 18th will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 6.31%. The ex-dividend date is Tuesday, February 18th. Deluxe's payout ratio is currently 101.69%.

Analysts Set New Price Targets

A number of brokerages have recently commented on DLX. Sidoti raised Deluxe to a "hold" rating in a report on Thursday, January 30th. StockNews.com cut shares of Deluxe from a "strong-buy" rating to a "buy" rating in a report on Thursday.

Insider Activity

In other Deluxe news, CEO Barry C. Mccarthy bought 2,290 shares of the business's stock in a transaction that occurred on Thursday, December 5th. The stock was acquired at an average cost of $23.57 per share, with a total value of $53,975.30. Following the completion of the purchase, the chief executive officer now directly owns 180,960 shares in the company, valued at approximately $4,265,227.20. This trade represents a 1.28 % increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Insiders own 4.23% of the company's stock.

Institutional Investors Weigh In On Deluxe

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

Deluxe Price Performance

The company has a debt-to-equity ratio of 2.36, a current ratio of 0.98 and a quick ratio of 0.83. The firm has a market cap of $841.84 million, a price-to-earnings ratio of 16.12, a price-to-earnings-growth ratio of 0.55 and a beta of 1.52. The stock's fifty day moving average price is $22.61 and its 200-day moving average price is $21.22.

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.