Evertec (NYSE:EVTC) Shares Break Above Fifty Day Moving Average - Time to Sell?

Key Points

• Evertec shares rose above their 50-day moving average, reaching $32.02 and last trading at $31.79, compared with a 50-day average of $29.40.
• Analysts maintain a generally cautious outlook, with an average rating of “Hold” and a consensus price target of $35.00; ratings range from Buy to Hold.
• The company reported better-than-expected quarterly results, with EPS of $1.05 and revenue of $274.82 million, while also paying a quarterly dividend of $0.05 per share. Recent insider sales totaled 20,580 shares, whereas institutional investors own 96.8% of the stock.

Evertec, Inc. (NYSE:EVTC - Get Free Report)'s stock price passed above its 50-day moving average during trading on Tuesday. The stock has a 50-day moving average of $29.40 and traded as high as $32.02. Evertec shares last traded at $31.79, with a volume of 365,336 shares changing hands.

Analysts Set New Price Targets

A number of equities analysts have weighed in on EVTC shares. Morgan Stanley set a $34.00 price objective on shares of Evertec in a research report on Thursday, August 6th. Weiss Ratings raised Evertec from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, August 25th. Finally, Wall Street Zen raised shares of Evertec from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Two research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, Evertec presently has an average rating of "Hold" and a consensus target price of $35.00.

Evertec Price Performance

The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.89. The stock has a market capitalization of $1.90 billion, a PE ratio of 20.64, a P/E/G ratio of 0.88 and a beta of 0.72. The stock's 50-day moving average is $29.40 and its 200 day moving average is $28.26.

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

Evertec Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 4th. Stockholders of record on Monday, August 3rd were issued a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Monday, August 3rd. Evertec's payout ratio is currently 12.99%.

Insider Activity at Evertec

In related news, EVP Paola Perez-Surillo sold 17,486 shares of Evertec stock in a transaction 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 owned 46,421 shares of the company's stock, valued at approximately $1,465,046.76. The trade was a 27.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Aldo J. Polak sold 1,094 shares of the company's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $30.37, for a total value of $33,224.78. Following the sale, the director owned 14,849 shares of the company's stock, valued at approximately $450,964.13. This trade represents a 6.86% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 20,580 shares of company stock valued at $644,673. 1.13% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in shares of Evertec during the 2nd quarter worth about $254,513,000. Heartland Advisors Inc. bought a new position in Evertec during the 2nd quarter valued at about $23,346,000. North Star Asset Management Inc. bought a new position in Evertec during the 2nd quarter valued at about $22,489,000. Lone Peak Global Investors LLC lifted its holdings in Evertec by 5.9% during the 2nd quarter. Lone Peak Global Investors LLC now owns 584,685 shares of the business services provider's stock valued at $16,243,000 after purchasing an additional 32,764 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Evertec in the second quarter valued at about $12,700,000. Institutional investors and hedge funds own 96.80% of the company's stock.

Evertec Company Profile

Evertec, Inc is a payment processing and financial technology company that provides transaction-processing services and business technology solutions to financial institutions, merchants, government agencies and other organizations. The company operates through businesses that support electronic payments, merchant acquiring, payment networks and related financial services.

Its products and services include debit and credit card processing, point-of-sale and e-commerce payment acceptance, automated teller machine processing, prepaid services, electronic bill payment and money transfer solutions.

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