Insider Decision: Randy L Taylor Exercises Options At Everi Hldgs For $922K

Highlighted on May 30, it was unveiled in an SEC filing that Taylor, President & CEO at Everi Hldgs EVRI, executed a significant transaction involving the exercise of company stock options.

What Happened: Taylor, President & CEO at Everi Hldgs, made a strategic move by exercising stock options for 165,000 shares of EVRI as detailed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission. The transaction value amounted to $922,350.

Currently, Everi Hldgs shares are trading up 3.68%, priced at $7.05 during Friday's morning. This values Taylor's 165,000 shares at $922,350.

All You Need to Know 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.

Financial Milestones: Everi Hldgs's Journey

Revenue Growth: Everi Hldgs's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -5.55%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Navigating Financial Profits:

• Gross Margin: With a high gross margin of 80.88%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Everi Hldgs exhibits below-average bottom-line performance with a current EPS of 0.05.

Debt Management: Everi Hldgs's debt-to-equity ratio is below the industry average at 4.19, reflecting a lower dependency on debt financing and a more conservative financial approach.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 10.3 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.77 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 4.34, Everi Hldgs's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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The Impact of Insider Transactions on Investments

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Transaction Codes To Focus On

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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.