Insider Transaction: Geoffrey P Judge Sells $100K Worth Of Everi Holdings Shares

It was reported on March 12, that Geoffrey P Judge, Board Member at Everi Holdings EVRI executed a significant insider sell, according to an SEC filing.

What Happened: After conducting a thorough analysis, Judge sold 7,332 shares of Everi Holdings. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $100,668.

Tracking the Thursday's morning session, Everi Holdings shares are trading at $13.57, showing a down of 0.07%.

Get to Know Everi Holdings 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 patrons to access cash at gaming facilities through automated teller machines, point of sale debit card purchases, and others.

Breaking Down Everi Holdings's Financial Performance

Revenue Challenges: Everi Holdings's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -1.31%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Interpreting Earnings Metrics:

• Gross Margin: Achieving a high gross margin of 77.93%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Everi Holdings's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.05.

Debt Management: Everi Holdings's debt-to-equity ratio is below the industry average. With a ratio of 3.75, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 79.88 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.58, 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 7.12, Everi Holdings 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 Relevance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Everi Holdings's Insider Trades.

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