Evertec (NYSE:EVTC) Shares Gap Up Following Strong Earnings

Key Points

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Evertec, Inc. (NYSE:EVTC - Get Free Report) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $32.77, but opened at $35.74. Evertec shares last traded at $35.30, with a volume of 66,851 shares changing hands.

The business services provider reported $0.89 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.86 by $0.03. The firm had revenue of $229.61 million for the quarter, compared to analysts' expectations of $222.23 million. Evertec had a net margin of 15.56% and a return on equity of 36.67%. The business's revenue for the quarter was up 8.3% on a year-over-year basis. During the same period last year, the firm earned $0.83 earnings per share.

Evertec Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 5th. Stockholders of record on Monday, August 4th will be given a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Monday, August 4th. Evertec's dividend payout ratio (DPR) is currently 10.05%.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on EVTC. Raymond James Financial reissued an "outperform" rating and set a $43.00 price target (up from $42.00) on shares of Evertec in a research report on Thursday. Deutsche Bank Aktiengesellschaft began coverage on shares of Evertec in a report on Thursday, July 17th. They set a "hold" rating and a $35.00 price objective on the stock. Morgan Stanley dropped their price objective on shares of Evertec from $35.00 to $34.00 and set an "equal weight" rating on the stock in a report on Thursday. Susquehanna set a $39.00 price objective on shares of Evertec and gave the stock a "neutral" rating in a report on Tuesday, May 20th. Finally, Keefe, Bruyette & Woods raised their price objective on shares of Evertec from $42.00 to $44.00 and gave the stock an "outperform" rating in a report on Thursday, May 8th. Three equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $39.00.

Insider Transactions at Evertec

In other Evertec news, EVP Luis A. Rodriguez-Gonzalez sold 18,898 shares of Evertec stock in a transaction on Friday, May 9th. The shares were sold at an average price of $35.69, for a total value of $674,469.62. Following the sale, the executive vice president directly owned 35,203 shares in the company, valued at approximately $1,256,395.07. The trade was a 34.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Miguel Vizcarrondo sold 40,000 shares of Evertec stock in a transaction on 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 sale, the executive vice president owned 92,509 shares in the company, valued at $3,371,027.96. The trade was a 30.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 75,634 shares of company stock worth $2,742,976. 0.63% of the stock is owned by insiders.

Institutional Investors Weigh In On Evertec

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. USA Financial Formulas bought a new position in shares of Evertec in the 2nd quarter valued at about $26,000. Quadrant Capital Group LLC grew its position in shares of Evertec by 4,525.0% in the 4th quarter. Quadrant Capital Group LLC now owns 740 shares of the business services provider's stock valued at $26,000 after acquiring an additional 724 shares during the period. Blue Trust Inc. grew its position in shares of Evertec by 39.2% in the 1st quarter. Blue Trust Inc. now owns 1,522 shares of the business services provider's stock valued at $56,000 after acquiring an additional 429 shares during the period. Johnson Financial Group Inc. bought a new position in shares of Evertec in the 4th quarter valued at about $54,000. Finally, Fifth Third Bancorp grew its position in shares of Evertec by 44.7% in the 1st quarter. Fifth Third Bancorp now owns 1,699 shares of the business services provider's stock valued at $62,000 after acquiring an additional 525 shares during the period. 96.80% of the stock is currently owned by institutional investors and hedge funds.

Evertec Trading Down 3.9%

The business's 50-day moving average price is $35.59 and its 200 day moving average price is $34.99. The company has a market cap of $2.21 billion, a P/E ratio of 16.38, a P/E/G ratio of 1.99 and a beta of 0.96. The company has a debt-to-equity ratio of 1.49, a quick ratio of 1.99 and a current ratio of 2.20.

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.