Evertec (NYSE:EVTC) Price Target Lowered to $25.00 at Morgan Stanley

Key Points

• Morgan Stanley cut Evertec’s price target from $29 to $25 while keeping an equal weight rating, implying only modest upside from the current share price.
• Other analysts have turned more cautious on the stock recently, with multiple firms issuing hold ratings; the overall consensus now sits at Hold with an average price target of $33.20.
• Evertec’s latest quarterly results slightly missed earnings and revenue estimates, though revenue still rose 8.4% year over year, and company insiders recently bought shares in separate transactions.

Evertec (NYSE:EVTC - Get Free Report) had its price target cut by equities researchers at Morgan Stanley from $29.00 to $25.00 in a report released on Tuesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the business services provider's stock. Morgan Stanley's price target indicates a potential upside of 1.50% from the company's current price.

Other research analysts also recently issued research reports about the stock. Zacks Research lowered Evertec from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, January 20th. Wall Street Zen downgraded shares of 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 price target on shares of Evertec in a research note on Thursday, May 7th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Evertec in a report on Friday, March 27th. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, Evertec has an average rating of "Hold" and an average price target of $33.20.

Evertec Stock Performance

NYSE:EVTC traded up $0.36 during mid-day trading on Tuesday, hitting $24.63. 16,186 shares of the stock were exchanged, compared to its average volume of 480,168. Evertec has a fifty-two week low of $21.82 and a fifty-two week high of $38.56. The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.97 and a current ratio of 1.97. The stock has a market capitalization of $1.52 billion, a price-to-earnings ratio of 11.90, a price-to-earnings-growth ratio of 0.80 and a beta of 0.80. The firm's 50-day simple moving average is $28.06 and its 200 day simple moving average is $28.47.

Evertec (NYSE:EVTC - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The business services provider reported $0.90 earnings per share for the quarter, missing analysts' consensus estimates of $0.91 by ($0.01). The business had revenue of $247.92 million during 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%. The firm's quarterly revenue was up 8.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.87 earnings per share. Evertec has set its FY 2026 guidance at 3.860-3.980 EPS. As a group, equities analysts anticipate that Evertec will post 3.34 EPS for the current fiscal year.

Insider Buying and Selling

In other Evertec news, EVP Luis A. Rodriguez-Gonzalez bought 17,000 shares of the stock in a transaction on Thursday, May 7th. The shares were acquired at an average price of $24.10 per share, with a total value of $409,700.00. Following the acquisition, the executive vice president directly owned 80,907 shares of the company's stock, valued at $1,949,858.70. The trade was a 26.60% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Joaquin A. Castrillo-Salgado acquired 20,000 shares of the company's stock in a transaction that occurred on Friday, May 8th. The shares were bought at an average cost of $22.74 per share, for a total transaction of $454,800.00. Following the acquisition, the chief operating officer directly owned 143,987 shares in the company, valued at $3,274,264.38. This represents a 16.13% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 1.13% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. American Century Companies Inc. grew its position in 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 during the last quarter. Dimensional Fund Advisors LP grew its stake in Evertec by 4.1% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,574,381 shares of the business services provider's stock worth $45,799,000 after purchasing an additional 61,591 shares during the period. Millennium Management LLC grew its position in shares of Evertec by 23.7% in the 4th quarter. Millennium Management LLC now owns 848,588 shares of the business services provider's stock worth $24,685,000 after buying an additional 162,307 shares during the period. North Star Asset Management Inc. grew its holdings 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 during the period. Finally, Charles Schwab Investment Management Inc. increased its position in Evertec by 8.1% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 708,704 shares of the business services provider's stock valued at $20,616,000 after buying an additional 53,323 shares in the last quarter. 96.80% of the stock is currently owned by hedge funds and other institutional investors.

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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