Should You Consider Investing in Global Payments (GPN)?

LRT Capital Management, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -6.71% was recorded by the LRT Economic Moat strategy for the month of November 2021, extending its 12-month returns to +23.06%. Year-to-date, LRT Capital was able to post a gain of +17.91%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

LRT Capital Management, in its Q3 2021 investor letter, mentioned Global Payments Inc. (NYSE: GPN) and discussed its stance on the firm. Global Payments Inc. is an Atlanta, Georgia-based financial services company with a $36.5 billion market capitalization. GPN delivered a -41.60% return since the beginning of the year, while its 12-month returns are down by -34.50%. The stock closed at $125.80 per share on December 10, 2021.

Here is what LRT Capital Management has to say about Global Payments Inc.  in its Q3 2021 investor letter:

“Global Payments Inc. (GPN) – another credit processing / merchant acquirer that is currently trading at a depressed valuation. Fiserv, Inc. (FISV), is in a similar spot. Both companies are trading at their lowest forward earnings multiples since 2013 and represent good opportunities. We expect payment companies to be particularly good inflation hedges as their revenues rise with the nominal spending that flows through their networks while most costs are fixed.”

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Based on our calculations, Global Payments Inc. (NYSE: GPN) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. GPN was in 68 hedge fund portfolios at the end of the third quarter of 2021, compared to 66 funds in the previous quarter. Global Payments Inc. (NYSE: GPN) delivered a -24.39% return in the past 3 months.

Earlier this year, we also shared another hedge fund’s views on GPN in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.