Equifax (NYSE:EFX) Shares Gap Up After Strong Earnings

Equifax, Inc. (NYSE:EFX)’s share price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $158.57, but opened at $166.11. Equifax shares last traded at $174.6850, with a volume of 545,346 shares changing hands.

The credit services provider reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.20 by $0.06. Equifax had a return on equity of 21.61% and a net margin of 10.73%. The firm had revenue of $1.69 billion for the quarter, compared to the consensus estimate of $1.69 billion. During the same quarter in the prior year, the business posted $2.04 earnings per share. The business’s quarterly revenue was up 9.6% on a year-over-year basis.

Equifax Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Monday, August 31st were paid a $0.56 dividend. This represents a $2.24 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Monday, August 31st. Equifax’s dividend payout ratio (DPR) is currently 39.37%.

More Equifax News

Here are the key news stories impacting Equifax this week:

• Positive Sentiment: Equifax reported third-quarter adjusted EPS of $2.26, above the $2.20 consensus estimate and up from $2.04 a year earlier, extending its earnings-beat streak. Earnings Flash: Equifax Posts Q3 Adjusted EPS
• Positive Sentiment: Revenue rose approximately 10% year over year to $1.693 billion, in line with expectations. Growth was broad-based, including a 15% increase in mortgage-related revenue, 13% growth in U.S. Information Solutions, 7% growth in Workforce Solutions and 9% international growth. Equifax Third-Quarter Results
• Positive Sentiment: Net income attributable to Equifax increased 32% to $211.7 million, while the company returned $158 million to shareholders through $92 million of share repurchases and $66 million in dividends. Equifax Q3 Revenue Rises
• Neutral Sentiment: Management cited AI-related cost savings and continued diversified-markets momentum, but investors remain focused on the outlook for mortgage-sensitive operations.
• Negative Sentiment: Equifax lowered its full-year 2026 reported revenue outlook to $6.646 billion-$6.676 billion and forecast fourth-quarter revenue of $1.605 billion-$1.635 billion, below analyst expectations. The company attributed the revisions to a weaker U.S. mortgage market during the second half of the third quarter and through year-end. Equifax Shares and Q4 Guidance
• Negative Sentiment: Mizuho reduced its price target from $210 to $185, although it maintained an “outperform” rating, signaling more limited near-term upside after the outlook reduction.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on EFX. Mizuho dropped their price target on Equifax from $210.00 to $185.00 and set an “outperform” rating for the company in a research note on Monday. Credit Suisse Group set a $160.00 price objective on Equifax in a research report on Wednesday, September 30th. Citigroup decreased their price objective on Equifax from $238.00 to $220.00 and set a “buy” rating on the stock in a report on Wednesday, July 22nd. Barclays decreased their price objective on Equifax from $200.00 to $155.00 and set an “equal weight” rating on the stock in a report on Friday, October 2nd. Finally, Needham & Company LLC dropped their target price on Equifax from $245.00 to $190.00 and set a “buy” rating for the company in a research report on Tuesday, October 13th. Fourteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Equifax presently has an average rating of “Moderate Buy” and a consensus target price of $201.05.

Insider Activity

In other news, EVP John Gamble sold 4,500 shares of Equifax stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $187.96, for a total transaction of $845,820.00. Following the sale, the executive vice president owned 69,055 shares of the company’s stock, valued at approximately $12,979,577.80. The trade was a 6.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mark W. Begor sold 37,791 shares of Equifax stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $172.16, for a total value of $6,506,098.56. Following the sale, the chief executive officer directly owned 271,890 shares in the company, valued at approximately $46,808,582.40. The trade was a 12.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.70% of the stock is owned by company insiders.

Institutional Trading of Equifax

A number of hedge funds and other institutional investors have recently modified their holdings of EFX. BlackRock Inc. purchased a new position in Equifax during the 2nd quarter valued at about $1,491,357,000. Soroban Capital Partners LP grew its holdings in Equifax by 310.5% in the first quarter. Soroban Capital Partners LP now owns 4,184,569 shares of the credit services provider’s stock worth $753,515,000 after purchasing an additional 3,165,120 shares during the period. Generation Investment Management LLP purchased a new stake in Equifax in the second quarter worth about $290,868,000. Bank of America Corp DE purchased a new stake in Equifax in the second quarter worth about $187,215,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Equifax during the second quarter valued at approximately $174,843,000. 96.20% of the stock is owned by hedge funds and other institutional investors.

Equifax Stock Up 10.2%

The company has a quick ratio of 0.60, a current ratio of 0.60 and a debt-to-equity ratio of 0.92. The stock has a market capitalization of $20.53 billion, a PE ratio of 30.71, a price-to-earnings-growth ratio of 1.69 and a beta of 1.35. The company’s fifty day moving average price is $167.07 and its 200-day moving average price is $169.95.

About Equifax

Equifax Inc (NYSE: EFX) is a global data, analytics and technology company that provides information and services to help businesses, governments and consumers make informed financial and workforce decisions. The company is best known for its credit reporting activities, but its offerings also include identity verification, fraud prevention, income and employment verification, marketing services and risk management solutions.

Equifax provides consumer and commercial credit information, credit reports and related analytics to lenders and other businesses.