Insider Decision: Miguel Vizcarrondo Offloads $276K Worth Of Evertec Stock

Miguel Vizcarrondo, Executive Vice President at Evertec EVTC, disclosed an insider sell on December 23, according to a recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday outlined that Vizcarrondo executed a sale of 8,123 shares of Evertec with a total value of $276,947.

Evertec shares are trading down 0.0% at $33.58 at the time of this writing on Tuesday morning.

Unveiling the Story Behind Evertec

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.

A Deep Dive into Evertec's Financials

Positive Revenue Trend: Examining Evertec's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 22.28% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Navigating Financial Profits:

• Gross Margin: The company sets a benchmark with a high gross margin of 51.61%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Evertec's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.39.

Debt Management: With a high debt-to-equity ratio of 1.92, Evertec faces challenges in effectively managing its debt levels, indicating potential financial strain.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 26.23, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.67, 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 an EV/EBITDA ratio lower than industry benchmarks at 9.63, Evertec presents an attractive value opportunity.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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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.

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.

Deciphering Transaction Codes in Insider Filings

When it comes to 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 indicates 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 Evertec's Insider Trades.

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