Shift4 Payments (FOUR) Stock Jumps 6.7%: Will It Continue to Soar?

Shift4 Payments (FOUR) shares ended the last trading session 6.7% higher at $32.50. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 35% loss over the past four weeks.

The driving factor for the price rise can probably be linked to the insider buy transaction undertaken by the CEO of Shift4 Payments - Jared Isaacman, who purchased 27,728 shares of the company for a total value of $0.9 million on Jun 16, 2022. The move followed the management’s authorization of increasing the share repurchase capacity by $50 million.

This company is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of +18.2%. Revenues are expected to be $168.92 million, up 23.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Shift4 Payments, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on FOUR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Shift4 Payments is a member of the Zacks Financial Transaction Services industry. One other stock in the same industry, Fiserv (FISV), finished the last trading session 0.9% higher at $89.15. FISV has returned -6.4% over the past month.

For Fiserv , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.55. This represents a change of +13.1% from what the company reported a year ago. Fiserv currently has a Zacks Rank of #3 (Hold).

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