On December 31, 2024, Dodge & Cox (Trades, Portfolio) executed a notable transaction involving Fidelity National Information Services Inc (FIS, Financial). The firm reduced its holdings in FIS by 6,745,769 shares, marking a 16.42% decrease in its position. This strategic move reflects Dodge & Cox (Trades, Portfolio)'s ongoing evaluation of its investment portfolio, aligning with its philosophy of seeking superior relative value. The transaction was executed at a price of $80.77 per share, impacting the firm's portfolio by -0.31%. Post-transaction, Dodge & Cox (Trades, Portfolio) holds 34,327,527 shares of FIS, which constitutes 1.57% of its portfolio and 6.40% of FIS's total shares.

About Dodge & Cox (Trades, Portfolio)

Founded in 1930 by Van Duyn Dodge and E. Morris Cox, Dodge & Cox (Trades, Portfolio) is renowned for its team research approach in making investment decisions. The firm is guided by its Investment Policy Committees, which ensure continuity in its investing philosophy, research, and culture. Dodge & Cox (Trades, Portfolio) focuses on long-term ownership of undervalued companies, steering clear of popular choices that do not offer superior relative value. The firm believes that investing when valuations are low creates greater potential for capital appreciation. Dodge & Cox (Trades, Portfolio)'s top holdings include Fiserv Inc (FI, Financial), Johnson Controls International PLC (JCI, Financial), Charles Schwab Corp (SCHW, Financial), RTX Corp (RTX, Financial), and Wells Fargo & Co (WFC, Financial).

Fidelity National Information Services Inc Overview

Fidelity National Information Services Inc, based in the USA, provides core processing and ancillary services to banks. Over time, the company has expanded its business through strategic acquisitions, such as SunGard in 2015 and Worldpay in 2019. FIS operates in segments including Banking Solutions, Capital Market Solutions, and Corporate and Other, with a market capitalization of $37.97 billion. Currently, FIS is trading at $70.53, with a GF Score of 79/100, indicating likely average performance. The stock is modestly undervalued with a PE ratio of 26.92.

Financial Metrics and Growth Indicators

FIS has a balance sheet rank of 5/10 and a profitability rank of 7/10, with a cash to debt ratio of 0.07. Despite a -9.40% EBITDA growth over the past three years, the company has shown a remarkable 91.10% earnings growth. FIS's operating margin growth stands at 18.40%, and it has an interest coverage of 7.07. The company's Altman Z score is 0.80, and it holds a Piotroski F-Score of 8, indicating a stable financial position.

Other Gurus Holding FIS

Besides Dodge & Cox (Trades, Portfolio), other notable investors in FIS include Barrow, Hanley, Mewhinney & Strauss, HOTCHKIS & WILEY, and Mason Hawkins (Trades, Portfolio). Among these investors, Dodge & Cox (Trades, Portfolio) remains the largest holder of FIS shares. This transaction reflects the firm's strategic approach to managing its portfolio, focusing on long-term value and potential capital appreciation.

Transaction Analysis

The reduction in Dodge & Cox (Trades, Portfolio)'s stake in FIS suggests a strategic rebalancing of its portfolio, possibly to capitalize on other opportunities or to manage risk. Despite the reduction, Dodge & Cox (Trades, Portfolio) continues to hold a significant position in FIS, indicating confidence in the company's long-term prospects. The transaction's impact on the firm's portfolio was minimal at -0.31%, reflecting a calculated decision aligned with its investment philosophy. As FIS is currently trading below its GF Value, it presents a potential opportunity for value investors seeking modestly undervalued stocks.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.