"Undoubtedly, it's a historic, unprecedented implosion and one that may very well be exaggerated, given the market's tendency to overswing to the downside. For those seeking deeper value, I continue to find the name intriguing, even as various sell-side analysts continue to turn away from the name. Though it's going to take a lot to turn a corner, I do get why insiders and hedge funds are starting to get aggressive with buying the dip."
"Fallen fintech company Fiserv ( NASDAQ:FISV) has been a favorite among hedge funds in the last quarter. And now, it appears that the execs are also buying up the shares as the battered stock, down close to 75% from its all-time highs, looks to orchestrate some sort of turnaround. Undoubtedly, it's a historic, unprecedented implosion and one that may very well be exaggerated, given the market's tendency to overswing to the downside."
Fiserv shares have fallen roughly 75% from their all-time highs while hedge funds and company executives are buying shares. The decline is described as historic and possibly exaggerated by market overswings, creating potential deep undervaluation. Sell-side analysts have grown wary, making a turnaround difficult and requiring significant operational improvement. Low expectations and insider buying raise the prospect of recovery, attracting value investors including noted billionaires. The opportunity suits investors willing to tolerate extreme volatility, whereas others should avoid jumping in due to execution risk and uncertain catalysts for sustained improvement.
Read at 24/7 Wall St.
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