Should You Now Take Profit on Your Global Payments (GPN) Shares?

Parnassus Investments, an investment management firm that focuses on owning a concentrated portfolio of U.S. large cap stocks, released its Parnassus Value Equity Fund second-quarter 2025 investor letter. The full letter is available for download here. For the second quarter of 2025, the fund reported a net return of 7.24%, outperforming its benchmark, the Russell 1000 Value Index, which returned 3.79% for the same period. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

One of the companies mentioned in the letter is Global Payments Inc (NYSE:GPN). Global Payments Inc (NYSE:GPN) provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. Over the past month, Global Payments Inc (NYSE:GPN) rose by 4.56%, but its shares fell 17.76% of their value over the last 12 months. On August 12, 2025, Global Payments Inc (NYSE:GPN) shares closed at $82.39, with a market capitalization of $19.9 billion.

Here is what they have to say about Global Payments Inc (NYSE:GPN) in their investor letter:

"We became concerned about Global Payments Inc's (NYSE:GPN) longer-than-expected turnaround due to elevated competition and weak execution, as well as its announced acquisition of Worldpay that could delay shareholder returns. This exit reduced the portfolio’s overweight in Payments, a subsector that is sensitive to a potential slowdown in consumer spending."

Global Payments Inc (NYSE:GPN) is not included in our list of the 30 most popular stocks among hedge funds. According to our data, 65 hedge fund portfolios held positions in Global Payments Inc (NYSE:GPN) at the end of the first quarter of 2025, down from 71 in the previous quarter. GPN missed earnings expectations as it reported an EPS of lower than expectations of $3.03. While we acknowledge the potential of GPN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Global Payments Inc (NYSE:GPN) and analyst Matthew Coad’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.