Evertec (NYSE:EVTC) Stock Price Down 11.1% - Should You Sell?

Key Points

• Evertec shares plunged 11.1% intraday to roughly $25 following the company's latest report, with about 92,845 shares traded during the move (well below the stock's average session volume).
• The update was mixed: management raised FY‑2026 guidance and reported improving adjusted metrics (revenue ≈+8% y/y; Adjusted EBITDA ≈+9%), but GAAP net income fell ~27% and GAAP EPS dropped ~24%, and the quarter slightly missed Street estimates, prompting short‑term selling.
• Analysts maintain a consensus “Hold” rating with a $34 price target; Evertec has a market cap near $1.43B, pays a $0.05 quarterly dividend, and is ~97% institutionally owned.

Evertec, Inc. (NYSE:EVTC - Get Free Report)'s share price traded down 11.1% on Thursday . The company traded as low as $25.47 and last traded at $25.0340. 92,845 shares changed hands during mid-day trading, a decline of 78% from the average session volume of 427,322 shares. The stock had previously closed at $28.16.

Trending Headlines about Evertec

Here are the key news stories impacting Evertec this week:

• Positive Sentiment: Evertec raised FY‑2026 guidance: management updated EPS guidance to a range above consensus and increased revenue guidance to roughly $1.1B, signaling confidence in mid‑term growth. Business Wire: Q1 Results
• Positive Sentiment: Top-line and adjusted operating performance improved: revenue rose ~8% y/y (≈5% constant currency) and Adjusted EBITDA increased ~9% to $97M, indicating core payment processing volumes and recurring services remained healthy. Business Wire: Q1 Results
• Neutral Sentiment: Evertec hosted an earnings call and published a slide deck/earnings presentation and transcripts are available for investor review (useful for gauging management color on drivers and FX). Seeking Alpha: Presentation
• Negative Sentiment: GAAP results weakened: GAAP net income fell ~27% y/y to $23.8M and GAAP EPS declined ~24% to $0.38, which likely alarmed investors focused on reported earnings volatility. Business Wire: Q1 Results
• Negative Sentiment: Quarterly EPS and revenue were slightly below Street expectations (reported ~$0.90 EPS vs. ~$0.91 consensus; revenue roughly $247.9M vs. consensus ~249M), prompting short‑term selling. Zacks: Misses
• Negative Sentiment: Market reaction amplified by heavy trading volume and the gap between improving adjusted metrics and weaker GAAP results — investors may be re‑pricing near‑term risk despite the raised guidance. Yahoo Finance: Sales Below Estimates

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. Wall Street Zen raised shares of Evertec from a "hold" rating to a "buy" rating in a research note on Saturday, February 28th. Raymond James Financial reaffirmed an "outperform" rating and issued a $34.00 price target on shares of Evertec in a research note on Thursday. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Evertec in a research note on Friday, March 27th. Finally, Zacks Research lowered shares of Evertec from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, January 20th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $34.00.

Evertec Stock Performance

The company has a market cap of $1.43 billion, a price-to-earnings ratio of 10.58, a P/E/G ratio of 1.07 and a beta of 0.80. The company has a current ratio of 2.07, a quick ratio of 2.07 and a debt-to-equity ratio of 1.69. The stock's fifty day simple moving average is $28.67 and its 200 day simple moving average is $28.86.

Evertec (NYSE:EVTC - Get Free Report) last released its quarterly earnings data on Tuesday, March 3rd. The business services provider reported $0.93 EPS for the quarter, beating analysts' consensus estimates of $0.91 by $0.02. The company had revenue of $244.83 million during the quarter, compared to the consensus estimate of $236.83 million. Evertec had a net margin of 15.19% and a return on equity of 33.27%. Evertec's quarterly revenue was up 13.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.87 EPS. As a group, analysts anticipate that Evertec, Inc. will post 3.4 earnings per share for the current year.

Evertec Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Monday, May 11th will be issued a dividend of $0.05 per share. The ex-dividend date is Monday, May 11th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.9%. Evertec's dividend payout ratio (DPR) is currently 9.13%.

Institutional Trading of Evertec

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Heartland Advisors Inc. increased its holdings in shares of Evertec by 5.3% during the 1st quarter. Heartland Advisors Inc. now owns 250,000 shares of the business services provider's stock worth $7,055,000 after buying an additional 12,500 shares during the last quarter. Jennison Associates LLC increased its holdings in shares of Evertec by 62.1% during the 1st quarter. Jennison Associates LLC now owns 60,934 shares of the business services provider's stock worth $1,720,000 after buying an additional 23,346 shares during the last quarter. Gallacher Capital Management LLC acquired a new stake in shares of Evertec during the 1st quarter worth approximately $228,000. Bessemer Group Inc. increased its holdings in shares of Evertec by 961.4% during the 1st quarter. Bessemer Group Inc. now owns 2,006 shares of the business services provider's stock worth $57,000 after buying an additional 1,817 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its holdings in shares of Evertec by 12.0% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 12,738 shares of the business services provider's stock worth $354,000 after buying an additional 1,362 shares during the last quarter. Institutional investors and hedge funds own 96.80% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.