Randy L Taylor Takes Money Off The Table, Sells $672K In Everi Hldgs Stock

Randy L Taylor, President & CEO at Everi Hldgs EVRI, disclosed an insider sell on November 27, according to a recent SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Taylor sold 50,000 shares of Everi Hldgs. The total transaction value is $672,000.

Monitoring the market, Everi Hldgs's shares down by 0.74% at $13.38 during Wednesday's morning.

Get to Know Everi Hldgs Better

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 Economic Impact: An Analysis

Negative Revenue Trend: Examining Everi Hldgs's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -9.07% 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.

Evaluating Earnings Performance:

• Gross Margin: Achieving a high gross margin of 78.21%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): With an EPS below industry norms, Everi Hldgs exhibits below-average bottom-line performance with a current EPS of -0.03.

Debt Management: Everi Hldgs's debt-to-equity ratio is below the industry average. With a ratio of 3.86, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 84.25 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.56, 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): With a lower-than-industry-average EV/EBITDA ratio of 6.4, Everi Hldgs 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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Navigating the Impact of Insider Transactions on Investments

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

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

Important Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, 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.

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