Zacks Investment Research Lowers Deluxe (DLX) to Sell

Deluxe (NYSE:DLX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Deluxe Corporation, through its industry-leading businesses and brands, helps financial institutions and small businesses better manage, promote, and grow their businesses. The Company uses direct marketing, distributors, and a North American sales force to provide a wide range of customized products and services: personalized printed items checks, forms, business cards, stationery, greeting cards, labels, and retail/packaging supplies, promotional products and merchandising materials, fraud prevention services, and customer retention programs. The Company also sells personalized checks and accessories directly to consumers. “

A number of other equities analysts have also commented on DLX. TheStreet lowered shares of Deluxe from a “b-” rating to a “c+” rating in a research report on Tuesday, August 21st. Buckingham Research initiated coverage on shares of Deluxe in a research report on Friday, October 12th. They set a “neutral” rating and a $56.00 price target on the stock. Finally, ValuEngine lowered shares of Deluxe from a “sell” rating to a “strong sell” rating in a research report on Tuesday, December 11th. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating and one has assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $50.00.

NYSE:DLX traded down $1.49 during mid-day trading on Wednesday, reaching $38.85. 369,848 shares of the company’s stock were exchanged, compared to its average volume of 362,994. Deluxe has a one year low of $38.63 and a one year high of $78.87. The firm has a market cap of $1.87 billion, a price-to-earnings ratio of 7.37 and a beta of 1.00. The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.12 and a current ratio of 1.25.

Deluxe (NYSE:DLX) last released its quarterly earnings results on Thursday, October 25th. The business services provider reported $1.36 EPS for the quarter, topping analysts’ consensus estimates of $1.28 by $0.08. Deluxe had a net margin of 9.00% and a return on equity of 26.00%. The business had revenue of $493.20 million for the quarter. Sell-side analysts anticipate that Deluxe will post 5.63 EPS for the current year.

In other news, SVP Jeffrey Louis Cotter bought 2,035 shares of the firm’s stock in a transaction on Wednesday, November 7th. The shares were purchased at an average cost of $49.20 per share, with a total value of $100,122.00. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Keith A. Bush bought 2,020 shares of the firm’s stock in a transaction on Wednesday, November 7th. The stock was purchased at an average cost of $49.60 per share, for a total transaction of $100,192.00. The disclosure for this purchase can be found here. 2.30% of the stock is owned by company insiders.

A number of hedge funds have recently added to or reduced their stakes in DLX. BlackRock Inc. increased its holdings in Deluxe by 10.1% in the 2nd quarter. BlackRock Inc. now owns 5,881,487 shares of the business services provider’s stock valued at $389,412,000 after buying an additional 538,145 shares during the period. Morgan Stanley increased its holdings in Deluxe by 113.6% in the 2nd quarter. Morgan Stanley now owns 750,694 shares of the business services provider’s stock valued at $49,703,000 after buying an additional 399,319 shares during the period. Canada Pension Plan Investment Board increased its holdings in Deluxe by 2,091.1% in the 3rd quarter. Canada Pension Plan Investment Board now owns 370,300 shares of the business services provider’s stock valued at $21,085,000 after buying an additional 353,400 shares during the period. Credit Suisse AG increased its holdings in Deluxe by 159.9% in the 3rd quarter. Credit Suisse AG now owns 316,196 shares of the business services provider’s stock valued at $18,005,000 after buying an additional 194,528 shares during the period. Finally, Matarin Capital Management LLC bought a new position in Deluxe in the 3rd quarter valued at about $9,528,000. 90.35% of the stock is currently owned by hedge funds and other institutional investors.

Deluxe Company Profile

Deluxe Corporation provides checks, forms, marketing solutions, accessories, and other products and services for small businesses and financial institutions. It operates through three segments: Small Business Services, Financial Services, and Direct Checks. The company provides checks; printed forms, such as deposit tickets, billing forms, work orders, job proposals, purchase orders, invoices, and personnel forms, as well as computer forms and check registers; and accessories and other products comprising envelopes, office supplies, ink stamps, and labels, as well as checkbook covers.

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