Insider Activity Update: David Lucchese Executes Options Exercise, Resulting In $1.16M At Everi Hldgs

David Lucchese, EVP at Everi Hldgs EVRI, reported a large exercise of company stock options on May 30, according to a new SEC filing.

What Happened: Lucchese, EVP at Everi Hldgs, exercised stock options for 215,000 shares of EVRI stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The exercise price of the options was $1.46 per share.

Currently, Everi Hldgs shares are trading up 0.74%, priced at $6.85 during Friday's morning. This values Lucchese's 215,000 shares at $1,158,850.

About Everi Hldgs

Everi Holdings Inc provides entertainment and technology solutions for the casino, interactive, and gaming industry. It operates in two segments namely Games and Financial Technology Solutions (FinTech). Enveri Games provides gaming operators with gaming technology products and services which include gaming machines, slot machines, leased gaming equipment, and other products and services. Enveri FinTech provides gaming operators with financial technology products and services which include services and equipment that facilitate casino patron's to access cash at gaming facilities through automated teller machines, point of sale debit card purchases and others.

Everi Hldgs's Financial Performance

Negative Revenue Trend: Examining Everi Hldgs's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -5.55% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 80.88%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Everi Hldgs's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.05.

Debt Management: Everi Hldgs's debt-to-equity ratio is below the industry average. With a ratio of 4.19, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The P/E ratio of 10.3 is lower than the industry average, implying a discounted valuation for Everi Hldgs's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.77 is lower than the industry average, implying a discounted valuation for Everi Hldgs's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 4.34, Everi Hldgs presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Everi Hldgs's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.