Financial Sector Update for 12/16/2015: HPY,GPN,JRJC,APLE

Top Financial Stocks

JPM +0.27%

BAC +0.17%

WFC +0.08%

C +0.21%

USB +0.22%

Financial stocks were most higher today, with the NYSE Financial Sector Index rising about 0.6% and the S&P Financial 100 Index climbing about 0.4%.

In company news, Heartland Payments Inc. ( HPY ) jumped to a new record high on Wednesday after the electronic payments processor tonight agreed to a $4.3 billion cash-and-stock buyout offer from rival Global Payments ( GPN ).

The deal values Heartland shares at $100 apiece, a nearly 21% premium over the company's closing price earlier today, with Global Payments paying $53.28 in cash and issuing 0.6687 of its share for each Heartland share. The transaction is expected to close by the end of 2016, subject to regulatory and shareholder approvals as well as customary conditions.

Global, which will own 84% of the combined companies, is projecting the acquisition will boost its cash per-share earnings by mid-single digits on a percentage basis during FY17 and growing to double-digits in FY18 and beyond. It also expects to realize around $50 million in synergies during the first year after closing and around $125 million in annual run-rate synergies in subsequent years.

Separately, Global last night also said it is expecting to report fiscal Q2 net income for the three months ended Nov. 30 of $0.76 per share, up from $0.66 per share during the same quarter last year and topping the Capital IQ consensus by $0.01 per share. It also said adjusted net revenue grew 5% from last year to $518 million, lagging the $525 million consensus.

HPY shares were up almost 10% this afternoon to $93.40 apiece, earlier reaching a best-ever $95.16 a share. GPN shares were down nearly 12% today to $63.22 each, rebounding somewhat from a drop earlier today to $63.00 a share.

In other sector news,

(+) JRJC, (+39.3%) Reports Q3 net income of $9.7 mln, or $0.39 per ADS, reversing a $2.4 mln and $0.11 per ADS loss last year. Revenue rises 74.8% over last year to $37 mln. No analyst estimates available for comparison.

(-) APLE, (-0.3%) Canaccord Genuity begins analyst coverage with a Buy rating and a $23 price target.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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