Execs Are Snatching Up Millions in One of the S&P 500’s Worst-Performing Stocks

Fiserv executives Paul Todd and Adam Rosman purchased thousands of shares of common stock at the beginning of December. (Caleb Santiago Alvarado/Bloomberg)

Key Points

• Fiserv’s CFO Paul Todd purchased 17,000 shares for $1 million on Dec. 1, increasing his direct holdings to 24,453 shares.
• Chief Administrative and Legal Officer Adam Rosman bought 7,900 shares for $499,201, his first purchase since joining in late 2021.
• Fiserv stock dropped 44% on Oct. 29 after halving its growth forecast due to economic conditions in Argentina.

Fiserv stock suffered its worst single-day percentage drop on record at the end of October and has yet to recover. Now, executives are snapping up shares of the fintech.

A Form 4 filed with the Securities and Exchange Commission on Tuesday shows Chief Financial Officer Paul Todd bought 17,000 shares for an average price of $62.41 each on Dec. 1. The $1 million purchase brought Todd’s direct holdings to 24,453 shares, which were worth $1.6 million based on Wednesday’s closing price of $66.95.

The following day, Chief Administrative and Legal Officer Adam Rosman bought 7,900 shares for $63.19 apiece, or $499,201 in total, according to a separate securities filing. Following the transaction, Rosman directly held 61,285 shares of Fiserv, which were valued at $4.1 million on Wednesday.

Tuesday’s stock purchase was Todd’s first since assuming the role of CFO in late October. He was granted 7,453 unvested restricted stock units at the time, an SEC filing shows. Notably, it was Rosman’s first purchase in his history with the company; he joined in late 2021. Securities filings show Rosman has previously been awarded shares rather than buying them.

“Our executives maintain meaningful share positions in Fiserv, reflecting their long-term alignment with shareholders and belief in our strategy,” a company spokesperson told Barron’s.

Created with Highcharts 9.0.1FiservSource: FactSetAs of Dec. 5

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The purchases, seen as a bullish signal, helped nudge the stock higher on Wednesday, closing up 5.9% to notch its largest same-day percentage increase since June.

However, the stock was down 1.3% on Thursday. Shares have slumped 68% this year, making it one of the worst-performing names in the S&P 500.

The stock cratered 44% on Oct. 29 after Fiserv halved its top-line growth forecast and cut its earnings outlook, saying its operations in Argentina would be hurt by decaying economic conditions. The stock closed below $100 for the first time since January 2023 and has yet to rebound to those levels.

Fiserv previously benefited from inflation in Argentina that has since cooled down. It has also grappled with other operational missteps, such as a focus on short-term initiatives that backfired.

The company services businesses and clients in the financial sector, namely banks and credit unions. Its products span commerce, payment processing, and billing.

Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com