Deluxe (NYSE:DLX) Shares Climb 16.2% After Strong Earnings

Deluxe Corporation (NYSE:DLX)’s stock price traded up 16.2% on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $27.45 and last traded at $27.2240. 145,261 shares were traded during trading, a decline of 68% from the average daily volume of 451,348 shares. The stock had previously closed at $23.42.

The business services provider reported $1.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.95 by $0.11. Deluxe had a net margin of 4.91% and a return on equity of 23.51%. The business had revenue of $553.90 million for the quarter, compared to analyst estimates of $532.67 million. During the same quarter last year, the firm earned $1.09 EPS. The company’s revenue was up 2.5% on a year-over-year basis.

Deluxe Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 17th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date is Tuesday, November 17th. Deluxe’s dividend payout ratio is currently 53.33%.

Key Stories Impacting Deluxe

Here are the key news stories impacting Deluxe this week:

• Positive Sentiment: Deluxe reported Q3 adjusted earnings of $1.06 per share, above estimates of $0.95–$0.98, and revenue of $553.9 million versus expectations of about $532.7 million. Revenue rose 2.5% year over year. Article: Deluxe Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: The company outlined 2026 revenue of $2.13 billion to $2.15 billion and is targeting $15 million in synergies from its Celero acquisition, providing investors with a revenue outlook and potential efficiency gains. Article: Deluxe Outlines 2026 Revenue Outlook and Celero Synergies
• Neutral Sentiment: Deluxe declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annualized. The dividend may appeal to income-focused investors, though the announcement does not indicate a change to the payout.
• Negative Sentiment: Despite beating quarterly estimates, earnings were below the $1.09 per share reported in the year-earlier quarter.

Analysts Set New Price Targets

A number of research analysts recently issued reports on DLX shares. Weiss Ratings upgraded Deluxe from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Barrington Research initiated coverage on Deluxe in a research report on Tuesday, September 29th. They set an “outperform” rating and a $31.00 price target for the company. Finally, Wall Street Zen cut Deluxe from a “buy” rating to a “hold” rating in a report on Saturday, October 31st. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $31.00.

Hedge Funds Weigh In On Deluxe

Hedge funds and other institutional investors have recently modified their holdings of the stock. Dimensional Fund Advisors LP raised its stake in Deluxe by 3.8% in the first quarter. Dimensional Fund Advisors LP now owns 2,753,203 shares of the business services provider’s stock worth $75,823,000 after buying an additional 101,105 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in Deluxe during the 2nd quarter valued at approximately $14,739,000. Empowered Funds LLC boosted its position in Deluxe by 79.5% during the 1st quarter. Empowered Funds LLC now owns 442,099 shares of the business services provider’s stock valued at $12,175,000 after acquiring an additional 195,749 shares in the last quarter. Sei Investments Co. boosted its position in Deluxe by 189.4% during the 1st quarter. Sei Investments Co. now owns 367,278 shares of the business services provider’s stock valued at $10,115,000 after acquiring an additional 240,359 shares in the last quarter. Finally, Bank of America Corp DE boosted its position in Deluxe by 20.0% during the 1st quarter. Bank of America Corp DE now owns 332,948 shares of the business services provider’s stock valued at $9,169,000 after acquiring an additional 55,429 shares in the last quarter. Hedge funds and other institutional investors own 93.90% of the company’s stock.

Deluxe Price Performance

The business has a fifty day simple moving average of $23.32 and a two-hundred day simple moving average of $25.31. The company has a current ratio of 1.20, a quick ratio of 1.08 and a debt-to-equity ratio of 2.02. The stock has a market cap of $1.25 billion, a PE ratio of 12.12, a P/E/G ratio of 0.66 and a beta of 1.29.

About Deluxe

Deluxe Corporation is a provider of payments, marketing and business technology solutions serving small businesses, financial institutions and consumers. The company’s offerings include checks and related forms, business supplies, promotional products, website and digital marketing services, customer relationship management tools, data-driven marketing solutions and payment processing services.

Deluxe also provides receivables management, fraud prevention and other financial technology services designed to help businesses and financial institutions manage transactions and customer relationships.