Evertec (NYSE:EVTC) Trading Down 6.1% on Insider Selling

Key Points

• Evertec shares fell 6.1% to about $29.66 amid light trading after EVP Paola Perez-Surillo sold 17,486 shares and director Aldo J. Polak sold 1,000 shares.
• Analyst sentiment remains mixed: the stock carries an average “Hold” rating with a $35 target price, while ratings range from Buy to Sell.
• Evertec exceeded quarterly earnings and revenue estimates, reporting $1.05 EPS and $274.82 million in revenue, while declaring a quarterly dividend of $0.05 per share.

Evertec, Inc. (NYSE:EVTC - Get Free Report)'s stock price was down 6.1% during mid-day trading on Monday following insider selling activity. The stock traded as low as $29.94 and last traded at $29.6550. Approximately 94,376 shares traded hands during trading, a decline of 82% from the average session volume of 517,657 shares. The stock had previously closed at $31.57.

Specifically, EVP Paola Perez-Surillo sold 17,486 shares of the stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $31.56, for a total value of $551,858.16. Following the completion of the sale, the executive vice president directly owned 46,421 shares of the company's stock, valued at $1,465,046.76. This represents a 27.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Aldo J. Polak sold 1,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $29.50, for a total transaction of $29,500.00. Following the sale, the director owned 17,943 shares of the company's stock, valued at approximately $529,318.50. This represents a 5.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Morgan Stanley set a $34.00 price objective on shares of Evertec in a research note on Thursday, August 6th. Wall Street Zen raised shares of Evertec from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Raymond James Financial restated an "outperform" rating and set a $34.00 price target on shares of Evertec in a report on Thursday, May 7th. Finally, Weiss Ratings downgraded shares of Evertec from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 11th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $35.00.

Evertec Trading Down 6.1%

The firm has a market cap of $1.77 billion, a P/E ratio of 19.26, a PEG ratio of 0.90 and a beta of 0.70. The company has a 50 day moving average of $28.74 and a 200 day moving average of $27.80. The company has a debt-to-equity ratio of 1.89, a quick ratio of 1.70 and a current ratio of 1.70.

Evertec (NYSE:EVTC - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The business services provider reported $1.05 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.10. The firm had revenue of $274.82 million for the quarter, compared to analyst estimates of $262.24 million. Evertec had a net margin of 9.80% and a return on equity of 32.07%. The company's revenue for the quarter was up 19.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.89 earnings per share. Evertec has set its FY 2026 guidance at 3.940-4.040 EPS. Analysts predict that Evertec, Inc. will post 3.53 EPS for the current fiscal year.

Evertec Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Monday, August 3rd will be paid a dividend of $0.05 per share. The ex-dividend date is Monday, August 3rd. This represents a $0.20 annualized dividend and a dividend yield of 0.7%. Evertec's dividend payout ratio is 12.99%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Kestra Advisory Services LLC acquired a new stake in shares of Evertec in the 4th quarter valued at $31,000. Hantz Financial Services Inc. increased its position in Evertec by 189.7% during the fourth quarter. Hantz Financial Services Inc. now owns 1,072 shares of the business services provider's stock worth $31,000 after buying an additional 702 shares during the last quarter. Clearstead Advisors LLC increased its position in Evertec by 194.5% during the fourth quarter. Clearstead Advisors LLC now owns 1,240 shares of the business services provider's stock worth $36,000 after buying an additional 819 shares during the last quarter. Allworth Financial LP bought a new position in Evertec during the second quarter valued at about $38,000. Finally, Global Retirement Partners LLC raised its holdings in Evertec by 53.1% during the fourth quarter. Global Retirement Partners LLC now owns 1,471 shares of the business services provider's stock valued at $43,000 after buying an additional 510 shares in the last quarter. Institutional investors 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.

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