Global Payments is experiencing a substantial personnel change with the resignation of its Chief Human Resources Officer, Andréa Carter, which may bring uncertainty regarding company direction in human resources. Additionally, the company's share price saw a 13% decline over the past week. This move coincided with significant downward pressure across stock markets, driven by escalating global trade tensions, which pushed major indices like the S&P 500 and Nasdaq into a broader market slump. The market's reaction to these external macroeconomic factors, alongside internal changes, highlights investor caution and the challenging trading environment for the company within the wider financial sector.

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Throughout the last year, Global Payments' total shareholder returns declined by 31.93%, underperforming the US Market, which experienced a 3.3% decline, and the US Diversified Financial industry, which saw a 9% increase. Several factors may have played a role in this decrease. Global Payments underwent strategic shifts, including a technology modernization push and the consolidation of its offerings under the Genius brand. These efforts aimed to fuel growth but also came with increased costs and short-term revenue risks.

In the same period, the company's financial strategies, such as share buybacks, saw significant activity, with over 5.75 million shares repurchased from October to December 2024 for a total of US$649.59 million. Additionally, the market reacted to changes like potential divestitures after November 2024, when Global Payments considered selling its payroll and Active Network businesses, and similar rumors of acquisition interest in Marqeta, leading to investor uncertainty.

Our comprehensive valuation report raises the possibility that Global Payments is priced lower than what may be justified by its financials.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:GPN.

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