Evertec (NYSE:EVTC) Sees Unusually-High Trading Volume - Time to Buy?

Key Points

• Evertec saw unusually high trading volume, with about 381,950 shares changing hands, while the stock traded around $24.33 after closing at $23.89 the prior session.
• Analyst sentiment has turned more cautious: Weiss Ratings and Wall Street Zen downgraded the stock, and Morgan Stanley cut its price target to $25, though Raymond James still rates it Outperform. Overall, the consensus rating remains Hold with an average target price of $33.20.
• The company recently reported quarterly EPS of $0.90, narrowly missing estimates, while revenue rose 8.4% year over year; it also declared a quarterly dividend of $0.05 per share. Insider buying was notable, with two executives purchasing shares in early May.

Evertec, Inc. (NYSE:EVTC - Get Free Report) saw unusually-high trading volume on Wednesday . Approximately 381,950 shares changed hands during mid-day trading, a decline of 22% from the previous session's volume of 487,464 shares.The stock last traded at $24.33 and had previously closed at $23.89.

Analysts Set New Price Targets

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

Evertec Price Performance

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 $1.46 billion, a P/E ratio of 11.53, a price-to-earnings-growth ratio of 0.84 and a beta of 0.80. The firm has a 50-day moving average price of $27.57 and a 200 day moving average price of $28.30.

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

Evertec Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Monday, May 11th will be given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 0.8%. The ex-dividend date is Monday, May 11th. Evertec's dividend payout ratio (DPR) is presently 9.66%.

Insider Activity at Evertec

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

Hedge Funds Weigh In On Evertec

Institutional investors and hedge funds have recently bought and sold shares of the stock. Kestra Advisory Services LLC bought a new position in Evertec during the 4th quarter worth approximately $31,000. Hantz Financial Services Inc. grew its position in Evertec by 189.7% during the 4th quarter. Hantz Financial Services Inc. now owns 1,072 shares of the business services provider's stock worth $31,000 after acquiring an additional 702 shares during the last quarter. Clearstead Advisors LLC grew its position in Evertec by 194.5% during the 4th quarter. Clearstead Advisors LLC now owns 1,240 shares of the business services provider's stock worth $36,000 after acquiring an additional 819 shares during the last quarter. Richardson Financial Services Inc. grew its position in Evertec by 73.7% during the 4th quarter. Richardson Financial Services Inc. now owns 1,325 shares of the business services provider's stock worth $39,000 after acquiring an additional 562 shares during the last quarter. Finally, Global Retirement Partners LLC grew its position in Evertec by 53.1% during the 4th quarter. Global Retirement Partners LLC now owns 1,471 shares of the business services provider's stock worth $43,000 after acquiring an additional 510 shares during the last quarter. 96.80% of the stock is currently owned by institutional investors.

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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