Evertec (NYSE:EVTC) Upgraded to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Evertec to “Buy” from “Hold.” However, the broader analyst consensus remains “Hold,” with an average price target of $35.
• Evertec’s latest quarterly results exceeded expectations, with EPS of $1.05 versus the $0.95 consensus and revenue of $274.82 million, up 19.7% year over year.
• The stock opened at $29.87 after declining 3.4%; institutional investors own a substantial 96.8% of Evertec’s outstanding shares, while a company director recently purchased 16,202 shares.

Evertec (NYSE:EVTC - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

Several other analysts have also recently weighed in on EVTC. Morgan Stanley set a $34.00 price objective on Evertec in a research report on Thursday. Weiss Ratings upgraded Evertec from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, July 28th. Finally, Raymond James Financial reaffirmed an "outperform" rating and issued a $34.00 price target on shares of Evertec in a research note on Thursday, May 7th. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $35.00.

Evertec Trading Down 3.4%

NYSE:EVTC opened at $29.87 on Friday. The company has a 50-day moving average price of $28.02 and a 200-day moving average price of $27.78. The stock has a market cap of $1.84 billion, a price-to-earnings ratio of 19.40, a P/E/G ratio of 1.05 and a beta of 0.70. The company has a current ratio of 1.70, a quick ratio of 1.97 and a debt-to-equity ratio of 1.89. Evertec has a 12 month low of $21.81 and a 12 month high of $37.71.

Evertec (NYSE:EVTC - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The business services provider reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.10. Evertec had a net margin of 9.80% and a return on equity of 32.07%. The company had revenue of $274.82 million for the quarter, compared to analysts' expectations of $262.24 million. During the same quarter in the previous year, the company earned $0.89 earnings per share. Evertec's quarterly revenue was up 19.7% on a year-over-year basis. Evertec has set its FY 2026 guidance at 3.940-4.040 EPS. Equities analysts predict that Evertec will post 3.34 EPS for the current year.

Insider Activity

In other Evertec news, Director Brian John Smith bought 16,202 shares of the stock in a transaction dated Friday, June 12th. The stock was purchased at an average cost of $26.42 per share, for a total transaction of $428,056.84. Following the completion of the acquisition, the director owned 88,222 shares of the company's stock, valued at approximately $2,330,825.24. This trade represents a 22.50% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 1.13% of the company's stock.

Institutional Trading of Evertec

Several hedge funds and other institutional investors have recently made changes to their positions in EVTC. BlackRock Inc. purchased a new position in Evertec during the second quarter valued at $254,513,000. Dimensional Fund Advisors LP grew its stake in shares of 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 acquiring an additional 61,591 shares during the last quarter. Millennium Management LLC increased its holdings in shares of Evertec by 23.7% during the fourth quarter. Millennium Management LLC now owns 848,588 shares of the business services provider's stock valued at $24,685,000 after acquiring an additional 162,307 shares in the last quarter. North Star Asset Management Inc. increased its holdings in shares of Evertec by 0.5% during the fourth quarter. North Star Asset Management Inc. now owns 808,974 shares of the business services provider's stock valued at $23,533,000 after acquiring an additional 3,858 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Evertec by 8.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 708,704 shares of the business services provider's stock worth $20,616,000 after purchasing an additional 53,323 shares during the last quarter. Hedge funds and other institutional investors own 96.80% of the company's stock.

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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