Evertec (NYSE:EVTC) Issues Earnings Results

Key Points

• Evertec exceeded quarterly earnings expectations, reporting $1.05 in earnings per share versus the $0.95 analyst consensus. The company posted a 13.95% net margin and 31.40% return on equity.
• Shares rose 5.0% to $32.65 following the results, near analysts’ consensus price target of $32.75. Wall Street’s overall rating remains “Hold,” with two Buy ratings and four Hold ratings.
• Evertec declared a quarterly dividend of $0.05 per share, equal to a 0.6% yield, while insiders purchased 53,202 shares worth approximately $1.29 million over the past 90 days.

Evertec (NYSE:EVTC - Get Free Report) issued its quarterly earnings data on Tuesday. The business services provider reported $1.05 earnings per share for the quarter, beating analysts' consensus estimates of $0.95 by $0.10, FiscalAI reports. Evertec had a net margin of 13.95% and a return on equity of 31.40%.

Evertec Trading Up 5.0%

Shares of NYSE EVTC traded up $1.54 during mid-day trading on Tuesday, hitting $32.65. The company's stock had a trading volume of 609,504 shares, compared to its average volume of 523,013. The company has a debt-to-equity ratio of 1.56, a current ratio of 1.97 and a quick ratio of 1.97. Evertec has a one year low of $21.81 and a one year high of $37.71. The company's fifty day simple moving average is $27.45 and its 200-day simple moving average is $27.73. The stock has a market cap of $2.01 billion, a price-to-earnings ratio of 15.77, a price-to-earnings-growth ratio of 1.03 and a beta of 0.70.

Evertec Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Monday, August 3rd will be issued a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Monday, August 3rd. Evertec's payout ratio is currently 9.66%.

Wall Street Analysts Forecast Growth

Several research analysts have commented on EVTC shares. Wall Street Zen cut shares of Evertec from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Raymond James Financial reissued an "outperform" rating and issued a $34.00 price target on shares of Evertec in a research report on Thursday, May 7th. Weiss Ratings raised Evertec from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, July 28th. Finally, Morgan Stanley decreased their price target on shares of Evertec from $29.00 to $25.00 and set an "equal weight" rating on the stock in a research report on Tuesday, May 19th. Two research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $32.75.

Insider Activity at Evertec

In other news, Director Brian John Smith bought 16,202 shares of the stock in a transaction on Friday, June 12th. The stock was purchased at an average price of $26.42 per share, with a total value of $428,056.84. Following the completion of the purchase, the director owned 88,222 shares of the company's stock, valued at approximately $2,330,825.24. This trade represents a 22.50% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Luis A. Rodriguez-Gonzalez acquired 17,000 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was purchased at an average price of $24.10 per share, with a total value of $409,700.00. Following the transaction, 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 ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders bought 53,202 shares of company stock worth $1,292,557. 1.13% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Evertec

Institutional investors and hedge funds have recently modified their holdings of the business. ExodusPoint Capital Management LP bought a new stake in shares of Evertec in the fourth quarter valued at about $231,000. Principal Securities Inc. grew its holdings in shares of Evertec by 242.7% during the fourth quarter. Principal Securities Inc. now owns 7,783 shares of the business services provider's stock worth $226,000 after buying an additional 5,512 shares in the last quarter. Lido Advisors LLC grew its holdings in shares of Evertec by 4.7% during the fourth quarter. Lido Advisors LLC now owns 9,159 shares of the business services provider's stock worth $266,000 after buying an additional 413 shares in the last quarter. CIBC Bancorp USA Inc. acquired a new stake in Evertec in the 3rd quarter valued at approximately $232,000. Finally, Schonfeld Strategic Advisors LLC acquired a new stake in Evertec in the 3rd quarter valued at approximately $272,000. 96.80% of the stock is currently owned by institutional investors and hedge funds.

About Evertec

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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