Is Fiserv a Buy After Letson Investment Management Initiated a Big Position in the Stock?

What happened

Letson Investment Management, Inc. disclosed a new stake in Fiserv (NYSE:FI) in its quarterly 13-F filing with the Securities and Exchange Commission, available here. The fund reported acquiring 73,166 shares of the financial technology company valued at $9.43 million as of September 30, 2025. The firm did not hold Fiserv shares in the prior quarter.

What else to know

This was a new position for Letson, representing 3.38% of its $278.74 million in reportable U.S. equity AUM following the trade.

Top holdings for Letson as of September 30, 2025 are:

• ABBV: $25.78 million (9.2% of AUM)
• V: $18.44 million (6.6% of AUM)
• JNJ: $14.66 million (5.3% of AUM)
• ABT: $14.56 million (5.2% of AUM)
• ACN: $10.90 million (3.9% of AUM)

As of October 21, 2025, Fiserv shares were priced at $126.07, down 37.9% over the past year, underperforming the S&P 500 by 52.4 percentage points.

Company Overview

Company Snapshot

Fiserv, Inc. is a leading provider of integrated payment and financial technology solutions with a global client base. The company leverages its scale and diversified product suite to deliver mission-critical services for financial institutions and merchants.

IMAGE SOURCE: GETTY IMAGES.

Fiserv's competitive advantage lies in its broad platform capabilities and deep integration across the payments and fintech value chain. It provides payment and financial services technology, including merchant acquiring, digital commerce, point-of-sale solutions, card processing, and digital banking platforms.

The company generates revenue through transaction processing, software and platform subscriptions, and value-added financial technology services across its acceptance, fintech, and payments segments.

Fiserv serves businesses, merchants, banks, credit unions, and other financial institutions globally as primary customers.

Foolish take

Investment management company Letson's move to initiate a position in Fiserv suggests it has a bullish outlook on the stock. This is despite Wall Street analysts lowering price targets after Fiserv cut its 2025 revenue outlook in July from 10% to 12% year-over-year growth down to approximately 10%.

Shares of the fintech company have steadily declined over the past several months, eventually hitting a 52-week low of $117.84 on Oct. 16. As a result, Fiserv stock's forward price-to-earnings (P/E) ratio also declined from 17 at the end of Q2 to around 11 in October.

Fiserv's share price drop and compelling valuation may have been the drivers for Letson to jump into the stock. The purchase was significant, putting Fiserv into the top ten within Letson's portfolio of nearly 100 equities.

Letson's faith in Fiserv looks justified as the stock may be poised for a comeback. Fiserv's Q2 sales of $5.5 billion represented 8% year-over-year growth. This is better than the 7% year-over-year increase the fintech giant experienced in 2024.

Given Fiserv's compelling P/E ratio and solid sales growth, the company looks like a buy opportunity to hold for the long run.

Glossary

13-F filing: A quarterly report required by the SEC showing U.S. equity holdings of institutional investment managers.
New position: The initial purchase of a security by an investor or fund, indicating no prior holdings.
AUM (Assets Under Management): The total market value of assets that an investment firm manages on behalf of clients.
Top holdings: The largest investments in a fund or portfolio, typically ranked by market value.
Merchant acquiring: A service enabling businesses to accept credit or debit card payments from customers.
Point-of-sale solutions: Technology systems used by businesses to process in-person sales transactions.
Card processing: The handling of credit or debit card transactions between merchants, banks, and payment networks.
Fintech: Technology-driven products and services that improve or automate financial services and processes.
Transaction processing: The execution and management of financial transactions, such as payments or transfers, for clients.
Value-added services: Additional features or enhancements provided alongside core products to increase customer value.
Quarterly report: A financial statement released every three months, detailing a company's performance and financial position.
TTM: The 12-month period ending with the most recent quarterly report.

Robert Izquierdo has positions in Johnson & Johnson. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, Accenture Plc, and Visa. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.