Payments Industry Stock Price Tracker
Figure 1 is the April Payments Industry Stock Price Tracker. The chart measures current stock prices and market caps (as of April 27, 2012) and changes over the last 30 days as well as year-to-date movements. The overall stock market reflected strong performance from January through March but was flat in the month of April; despite a weak April, the overall average is up 10% YTD. Since January, on average, the performance of the companies in the payments value chain continued to outpace that of the broader market.
- The issuer sector underperformed during the month of April, showing a decline of 3%, but as a group, issuers have shown the highest returns so far in 2012, up 27%. Bank of America is performing exceptionally well for the year but took a step back in April with a 15% decline. Discover has been the steady performer for the year and logged the highest issuer return for April.
- The processor / acquirer sector performed slightly better than the market with a 2% gain. TSYS is the high performer for the month, up 4%. In early April, Global Payments experienced a data breach that affected approximately 1.5 million cardholders, which had an impact on its April performance, down 11%. Vantiv, a US-based payment processing company, announced its initial public offering on March 21, 2012. It was previously a joint venture between Advent International and Fifth Third Bank. Since the IPO, Vantiv has seen a 10% gain.
- The network sector experienced performance superior to that of the market (and the other payment categories) this month, posting a 5% gain. Despite having lagged the issuers and processors during the first quarter, the networks gained ground in April and are up 22% year to date.
Figure 1: Monthly Average Stock Price Tracker
Source: Google Finance, First Annapolis Consulting research and analysis.
For more information, please contact Mike Hutton, Analyst specializing in Card Issuing,firstname.lastname@example.org
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