Trexquant Investment LP Purchases New Position in Evertec, Inc. $EVTC

Key Points

• Trexquant Investment LP has made a new investment of approximately $380,000 in Evertec, acquiring 10,331 shares in the process during the first quarter of the year.
• Following similar trends, several hedge funds, such as OMERS ADMINISTRATION Corp and Banco Bilbao Vizcaya Argentaria S.A., have also increased their stakes in Evertec, indicating strong institutional interest.
• Evertec recently reported quarterly earnings of $0.89 per share, exceeding analysts' expectations and reflecting an 8.3% increase in revenue year-over-year.

Trexquant Investment LP bought a new position in shares of Evertec, Inc. (NYSE:EVTC - Free Report) in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 10,331 shares of the business services provider's stock, valued at approximately $380,000.

Other hedge funds also recently modified their holdings of the company. Blue Trust Inc. grew its holdings in shares of Evertec by 39.2% during the first quarter. Blue Trust Inc. now owns 1,522 shares of the business services provider's stock worth $56,000 after purchasing an additional 429 shares during the last quarter. Fifth Third Bancorp boosted its stake in shares of Evertec by 44.7% during the 1st quarter. Fifth Third Bancorp now owns 1,699 shares of the business services provider's stock worth $62,000 after acquiring an additional 525 shares during the period. TD Private Client Wealth LLC boosted its stake in Evertec by 19.3% in the 1st quarter. TD Private Client Wealth LLC now owns 1,855 shares of the business services provider's stock valued at $68,000 after purchasing an additional 300 shares during the period. Harvest Fund Management Co. Ltd bought a new stake in Evertec in the 1st quarter valued at $80,000. Finally, Wealth Alliance LLC acquired a new position in Evertec in the 1st quarter valued at $209,000. 96.80% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on EVTC shares. Raymond James Financial reiterated an "outperform" rating and issued a $43.00 price target (up previously from $42.00) on shares of Evertec in a research report on Thursday, July 31st. Susquehanna set a $39.00 target price on Evertec and gave the stock a "neutral" rating in a research report on Tuesday, May 20th. Deutsche Bank Aktiengesellschaft began coverage on Evertec in a research note on Thursday, July 17th. They set a "hold" rating and a $35.00 price objective for the company. Finally, Morgan Stanley dropped their price target on Evertec from $35.00 to $34.00 and set an "equal weight" rating for the company in a research note on Thursday, July 31st. Three equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $39.00.

Evertec Price Performance

EVTC stock traded down $0.76 during trading on Friday, reaching $33.45. The company's stock had a trading volume of 248,562 shares, compared to its average volume of 287,466. Evertec, Inc. has a 1 year low of $31.41 and a 1 year high of $38.56. The company has a quick ratio of 2.20, a current ratio of 2.20 and a debt-to-equity ratio of 1.49. The company has a market capitalization of $2.14 billion, a P/E ratio of 15.78, a price-to-earnings-growth ratio of 1.67 and a beta of 0.93. The company's fifty day moving average is $35.00 and its 200-day moving average is $35.55.

Evertec (NYSE:EVTC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The business services provider reported $0.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. Evertec had a return on equity of 36.67% and a net margin of 15.56%.The business had revenue of $229.61 million during the quarter, compared to analyst estimates of $222.23 million. During the same quarter in the prior year, the business posted $0.83 EPS. Evertec's revenue for the quarter was up 8.3% compared to the same quarter last year. Evertec has set its FY 2025 guidance at 3.440-3.520 EPS. On average, research analysts expect that Evertec, Inc. will post 2.63 earnings per share for the current fiscal year.

Evertec Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 5th. Shareholders of record on Monday, August 4th were paid a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Monday, August 4th. Evertec's dividend payout ratio is presently 9.43%.

Insider Buying and Selling at Evertec

In other news, Director Aldo J. Polak sold 2,243 shares of the firm's stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $35.72, for a total transaction of $80,119.96. Following the completion of the transaction, the director owned 11,946 shares in the company, valued at $426,711.12. This trade represents a 15.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.63% of the stock is currently owned by insiders.

About Evertec

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.