Evertec Executive Vice President Trades Company's Stock

Making a noteworthy insider sell on September 3, Miguel Vizcarrondo, Executive Vice President at Evertec EVTC, is reported in the latest SEC filing.

What Happened: Vizcarrondo opted to sell 40,000 shares of Evertec, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $1,364,259.

Evertec's shares are actively trading at $33.62, experiencing a down of 0.0% during Wednesday's morning session.

Get to Know Evertec Better

Evertec Inc is a transaction processing business in Latin America and the Caribbean. Its business segments are Merchant Acquiring, Payment Services - Puerto Rico & Caribbean, Latin America Payments and Solutions, and Business Solutions which derive maximum revenue. The company serves a diversified customer base of financial institutions, merchants, corporations, and government agencies with mission-critical technology solutions that enable them to issue, process, and accept transactions securely.

Evertec: Delving into Financials

Revenue Growth: Evertec displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 26.88%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: With a high gross margin of 54.01%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Evertec's EPS is below the industry average. The company faced challenges with a current EPS of 0.5. This suggests a potential decline in earnings.

Debt Management: Evertec's debt-to-equity ratio stands notably higher than the industry average, reaching 2.01. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Overview:

• Price to Earnings (P/E) Ratio: Evertec's P/E ratio of 32.02 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.82, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 11.58, Evertec presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

Examining transactions, investors often concentrate on those unfolding 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 Evertec's Insider Trades.

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