Jackson Square Parnters Opens Large $6 Million Shift4 Payments (NYSE: FOUR) Position: Should Investors Buy Too?

Jackson Square Partners initiated a new, substantial position in Shift4 Payments (NYSE:FOUR), acquiring 74,100 shares valued at $5.74 million, which now constitutes 2.32% of their assets under management. This investment suggests the firm views the integrated payment solutions provider as a compelling "buy-the-dip" opportunity, given FOUR's significant underperformance and current low valuation multiples (16x FCF, 12x forward earnings) despite recent 17% sales growth.

Analysis

Jackson Square Partners (JSP) has established a significant new position in Shift4 Payments (NYSE:FOUR), acquiring 74,100 shares valued at $5.74 million as of September 30, 2025. This investment represents a notable 2.32% of JSP's assets under management, indicating a conviction beyond a mere starter position. The move suggests a strategic belief in FOUR's potential, positioning it as JSP's 14th largest holding.

The timing of JSP's acquisition is particularly noteworthy, as Shift4 Payments shares were priced at $66.74 on November 4, 2025, having declined 26% over the past year and underperformed the S&P 500 by 45 percentage points. This suggests JSP views FOUR as a compelling "buy-the-dip" opportunity, given the stock trades near its lowest-ever valuation at 16 times free cash flow and 12 times forward earnings. Despite this underperformance, the company reported robust sales growth of 17% in the last quarter.

Shift4 Payments, a provider of integrated payment and commerce solutions, demonstrates strong underlying fundamentals with $3.61 billion in TTM revenue and $220.50 million in TTM net income. While facing intense competition from peers like Toast, FOUR's valuation appears more attractive, trading at significantly lower multiples than Toast's 46x FCF, despite Toast's slightly faster growth. Shift4's diversified sales across hospitality, retail, and entertainment venues also provide a strategic advantage.

Key Decisions for Investors

• Consider FOUR as a potential "buy-the-dip" opportunity, given Jackson Square Partners' significant new stake, the stock's current low valuation multiples (16x FCF, 12x forward earnings), and recent 17% sales growth.
• Monitor competitive dynamics and the strength of Shift4's business moat, as the payments industry is highly competitive despite FOUR's more attractive valuation compared to peers like Toast.
• Evaluate Shift4's long-term growth prospects, supported by its diversified client base across hospitality, retail, and entertainment, which could offer sustained performance despite recent stock underperformance.