Evertec (NYSE:EVTC) Price Target Cut to $34.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley has reduced its price target on Evertec (NYSE:EVTC) from $35.00 to $34.00, indicating a potential downside of 4.16% based on the company's previous close.
• Evertec reported 8.3% revenue growth year-over-year in its latest quarterly earnings, with an EPS of $0.89, surpassing analysts' expectations.
• The stock currently has a consensus rating of "Moderate Buy" among analysts, with a price target averaging $39.00.

Evertec (NYSE:EVTC - Get Free Report) had its price target reduced by equities researchers at Morgan Stanley from $35.00 to $34.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has an "equal weight" rating on the business services provider's stock. Morgan Stanley's price objective indicates a potential downside of 4.16% from the company's previous close.

Other equities analysts also recently issued reports about the stock. Susquehanna set a $39.00 price target on shares of Evertec and gave the company a "neutral" rating in a report on Tuesday, May 20th. Raymond James Financial restated an "outperform" rating and issued a $43.00 price objective (up previously from $42.00) on shares of Evertec in a research report on Thursday. Deutsche Bank Aktiengesellschaft began coverage on shares of Evertec in a research report on Thursday, July 17th. They issued a "hold" rating and a $35.00 price objective for the company. Finally, Keefe, Bruyette & Woods raised their price objective on shares of Evertec from $42.00 to $44.00 and gave the company an "outperform" rating in a research report on Thursday, May 8th. Three analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $39.00.

Evertec Stock Up 8.3%

Shares of EVTC traded up $2.71 during mid-day trading on Thursday, hitting $35.48. 540,218 shares of the company's stock were exchanged, compared to its average volume of 315,397. The firm has a fifty day moving average of $35.74 and a two-hundred day moving average of $34.96. Evertec has a twelve month low of $31.11 and a twelve month high of $38.56. The stock has a market cap of $2.26 billion, a price-to-earnings ratio of 17.83, a P/E/G ratio of 1.84 and a beta of 0.98. The company has a quick ratio of 1.99, a current ratio of 1.99 and a debt-to-equity ratio of 1.69.

Evertec (NYSE:EVTC - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The business services provider reported $0.89 EPS for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The company had revenue of $229.61 million during the quarter, compared to the consensus estimate of $222.23 million. Evertec had a net margin of 14.89% and a return on equity of 38.45%. The firm's revenue for the quarter was up 8.3% compared to the same quarter last year. During the same period last year, the firm earned $0.83 EPS. On average, sell-side analysts forecast that Evertec will post 2.63 earnings per share for the current year.

Insider Activity

In related news, Director Ivan Pagan sold 6,852 shares of the company's stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $36.65, for a total value of $251,125.80. Following the transaction, the director directly owned 12,473 shares in the company, valued at approximately $457,135.45. This represents a 35.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Miguel Vizcarrondo sold 40,000 shares of the company's stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $36.44, for a total transaction of $1,457,600.00. Following the completion of the transaction, the executive vice president owned 92,509 shares in the company, valued at $3,371,027.96. This trade represents a 30.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 75,634 shares of company stock valued at $2,742,976. 0.63% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Evertec

A number of large investors have recently bought and sold shares of the company. Asset Management One Co. Ltd. bought a new position in Evertec in the 2nd quarter valued at approximately $348,000. New York State Teachers Retirement System grew its position in Evertec by 18.3% in the 2nd quarter. New York State Teachers Retirement System now owns 49,377 shares of the business services provider's stock valued at $1,780,000 after purchasing an additional 7,633 shares during the period. Blue Trust Inc. grew its position in Evertec by 28.6% in the 2nd quarter. Blue Trust Inc. now owns 1,958 shares of the business services provider's stock valued at $71,000 after purchasing an additional 436 shares during the period. IFP Advisors Inc grew its position in Evertec by 23.7% in the 2nd quarter. IFP Advisors Inc now owns 8,034 shares of the business services provider's stock valued at $294,000 after purchasing an additional 1,541 shares during the period. Finally, Callan Family Office LLC purchased a new position in Evertec during the 2nd quarter worth $410,000. 96.80% of the stock is currently owned by institutional investors and hedge funds.

Evertec Company Profile

EVERTEC, Inc engages in transaction processing business and financial technology in Latin America and the Caribbean. The company operates through four segments: Payment Services - Puerto Rico & Caribbean; Latin America Payments and Solutions; Merchant Acquiring; and Business Solutions. It provides merchant acquiring services, which enable point of sales and e-commerce merchants to accept and process electronic methods of payment, such as debit, credit, prepaid, and electronic benefit transfer (EBT) cards.

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