Major Exercise Alert: Darren Simmons Exercises Options Worth $402K At Everi Hldgs

In a new SEC filing on September 11, it was revealed that Simmons, EVP at Everi Hldgs EVRI, executed a significant exercise of company stock options.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday revealed that Simmons, EVP at Everi Hldgs in the Consumer Discretionary sector, exercised stock options for 75,000 shares of EVRI stock. The exercise price of the options was $7.74 per share.

The latest update on Wednesday morning shows Everi Hldgs shares down by 0.0%, trading at $13.11. At this price, Simmons's 75,000 shares are worth $402,749.

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.

Everi Hldgs's Financial Performance

Revenue Challenges: Everi Hldgs's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -8.4%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company maintains a high gross margin of 79.66%, indicating strong 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 0.11.

Debt Management: Everi Hldgs's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 3.95.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 27.31 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.48, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 6.84, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

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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Illuminating the Importance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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.