Evertec (NYSE:EVTC) Hits New 1-Year Low - Time to Sell?

Key Points

• Evertec shares hit a new 52-week low, trading as low as $21.81 and last changing hands at $21.92, down from the previous close of $22.74.
• Recent analyst sentiment is mixed but cautious: Morgan Stanley lowered its target to $25 and kept an equal-weight rating, while Evertec’s overall consensus remains Hold with an average price target of $33.20.
• The company’s latest earnings slightly missed estimates, with EPS of $0.90 versus $0.91 expected, though revenue rose 8.4% year over year and the company also announced a quarterly dividend of $0.05 per share.

Evertec, Inc. (NYSE:EVTC - Get Free Report)'s share price reached a new 52-week low on Friday . The stock traded as low as $21.81 and last traded at $21.92, with a volume of 108851 shares changing hands. The stock had previously closed at $22.74.

Wall Street Analysts Forecast Growth

EVTC has been the subject of several analyst reports. Morgan Stanley reduced their price objective on Evertec from $29.00 to $25.00 and set an "equal weight" rating for the company in a research note on Tuesday, May 19th. Wall Street Zen cut Evertec from a "buy" rating to a "hold" rating in a research report on Saturday, May 9th. Raymond James Financial reiterated an "outperform" rating and set a $34.00 target price on shares of Evertec in a research report on Thursday, May 7th. Finally, Weiss Ratings cut Evertec from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, May 22nd. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $33.20.

Evertec Trading Down 3.5%

The business has a fifty day simple moving average of $26.89 and a 200 day simple moving average of $28.08. The stock has a market cap of $1.35 billion, a price-to-earnings ratio of 10.58, a PEG ratio of 0.77 and a beta of 0.74. The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.97 and a current ratio of 1.97.

Evertec (NYSE:EVTC - Get Free Report) last announced its earnings results on Wednesday, May 6th. The business services provider reported $0.90 EPS for the quarter, missing analysts' consensus estimates of $0.91 by ($0.01). The company had revenue of $247.92 million for the quarter, compared to analyst estimates of $248.99 million. Evertec had a net margin of 13.95% and a return on equity of 31.40%. Evertec's quarterly revenue was up 8.4% compared to the same quarter last year. During the same quarter last year, the company posted $0.87 EPS. Evertec has set its FY 2026 guidance at 3.860-3.980 EPS. As a group, equities analysts anticipate that Evertec, Inc. will post 3.34 EPS for the current year.

Evertec Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Monday, May 11th will be paid a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Monday, May 11th. Evertec's dividend payout ratio is currently 9.66%.

Insider Buying and Selling at Evertec

In other news, COO Joaquin A. Castrillo-Salgado bought 20,000 shares of the business's stock in a transaction that occurred on Friday, May 8th. The shares were acquired at an average cost of $22.74 per share, with a total value of $454,800.00. Following the transaction, the chief operating officer owned 143,987 shares of the company's stock, valued at $3,274,264.38. This represents a 16.13% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Luis A. Rodriguez-Gonzalez purchased 17,000 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was bought at an average price of $24.10 per share, with a total value of $409,700.00. Following the completion of the acquisition, the executive vice president owned 80,907 shares in the company, valued at $1,949,858.70. This represents a 26.60% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 1.13% of the company's stock.

Institutional Trading of Evertec

Several large investors have recently added to or reduced their stakes in EVTC. American Century Companies Inc. grew its stake in shares of Evertec by 7.4% during the third quarter. American Century Companies Inc. now owns 4,894,013 shares of the business services provider's stock valued at $165,320,000 after acquiring an additional 335,639 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Evertec by 4.1% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,574,381 shares of the business services provider's stock valued at $45,799,000 after acquiring an additional 61,591 shares in the last quarter. Millennium Management LLC grew its stake in Evertec by 23.7% in the fourth quarter. Millennium Management LLC now owns 848,588 shares of the business services provider's stock worth $24,685,000 after purchasing an additional 162,307 shares in the last quarter. North Star Asset Management Inc. grew its stake in Evertec by 0.5% in the fourth quarter. North Star Asset Management Inc. now owns 808,974 shares of the business services provider's stock worth $23,533,000 after purchasing an additional 3,858 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its stake in Evertec by 8.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 708,704 shares of the business services provider's stock worth $20,616,000 after purchasing an additional 53,323 shares in the last quarter. 96.80% of the stock is currently owned by institutional investors and hedge funds.

Evertec Company Profile

Evertec, Inc NYSE: EVTC is a leading full‐service transaction processor in Puerto Rico, Latin America and the Caribbean. The company delivers integrated technology solutions for electronic payments, providing financial institutions, merchants and governments with secure and scalable platforms to accept, process and settle transactions across card, ATM, debit and digital channels. Headquartered in San Juan, Puerto Rico, Evertec supports both domestic and cross‐border payment flows, enabling clients to streamline operations and expand their digital commerce capabilities.

Evertec's suite of services includes merchant acquiring, payment gateway connectivity, ATM and point‐of‐sale network management, and fraud prevention solutions.

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