Insiders and Hedge Funds Have Been Aggressively Buying This Fintech Stock

Fiserv stock has fallen 75% from all-time highs.

Insiders and hedge funds, including Seth Klarman, are buying shares.

The stock trades at 7.89x forward P/E with lowered guidance and new leadership.

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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. 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.

In a market that’s frothy and potentially destined for sub-par results over the next decade, it’s freshly-crashed value names like Fiserv that may very well be the key to doing better than the averages moving forward. Either way, jumping into the deep end on a massive implosion will not be for everyone, especially for those who can’t handle extreme levels of volatility.

It’s going to take some pretty serious effort to get things moving in the right direction again, but with an expectations bar that’s obscenely low (though perhaps not as low as it could go!) and insiders stepping in with public market buys, I think the time has finally come to give the name the benefit of the doubt.

Either way, in a prior piece, I noted that a handful of my favorite billionaire investors, including the likes of the great Seth Klarman (the Oracle of Boston), were buying up the name on weakness. For such a seasoned value investor, Fiserv stock definitely seems like one of those names that’s worth swinging to the fences for, even as investors temper their expectations on AI stocks.

If Fiserv’s own executives are confident in the company’s ability to turn around, perhaps so, too, should investors sitting on the fence, wondering if they should buy, while investors are running scared or wait for more signs of a technical “bottoming out.” Of course, unless you’re willing to confront another leg lower, though, the name remains only for those with long-term time horizons and a game plan should Fiserv’s comeback take longer than expected.

Going into the new year, Fiserv is getting a fresh slate, with earnings guidance that’s been lowered to a level that may very well be on the conservative side. With new people coming in, perhaps sandbagging is the way to go.

In any case, with new execs (CFO and others),  a transformative restructuring strategy, and potential payment industry tailwinds that could begin to come into play, I must say I’m starting to really like the setup for 2026, especially while the shares go for 7.89 times forward price-to-earnings (P/E).

Of course, not everyone is a raging bull on the stock, including JP Morgan, which downgrades shares to neutral from overweight (pretty much hold from buy). They view the new year not as the start of a turn but as a “show-me execution” year.

They’re absolutely right in that it takes more than a plan and new people to fuel an epic comeback. Management must now execute, and while many folks are in the “show-me” camp right now amid the worst fall in recent memory, I do think those with confidence in management have more to gain before Fiserv actually has a chance to show what it has.

Given that Black Friday has seen glimmers of strength from the consumer, my guess is that the holiday season and 2026 could see a big comeback for some of the most-pressured payments plays. And, yes, that includes Fiserv, which may be overdue for a sustained rally.

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