Everi Hldgs Insider Trades Send A Signal

A substantial insider sell was reported on December 13, by Darren Simmons, EVP at Everi Hldgs EVRI, based on the recent SEC filing.

What Happened: After conducting a thorough analysis, Simmons sold 50,000 shares of Everi Hldgs. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total transaction value is $673,000.

Tracking the Friday's morning session, Everi Hldgs shares are trading at $13.46, showing a down of 0.0%.

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 September, 2024, the company experienced a decline of approximately -9.07%. This indicates 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.

Exploring Profitability:

• Gross Margin: The company maintains a high gross margin of 78.21%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Everi Hldgs's EPS reflects a decline, falling below the industry average with a current EPS of -0.03.

Debt Management: Everi Hldgs's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 3.86.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 84.12 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.56 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 6.4, Everi Hldgs's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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The Impact of Insider Transactions on Investments

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

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

The Insider's Guide to Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.