On December 10, it was revealed in an SEC filing that Linster W Fox, Board Member 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 Tuesday revealed that Fox, Board Member at Everi Hldgs in the Consumer Discretionary sector, exercised stock options for 40,000 shares of EVRI stock. The exercise price of the options was $1.57 per share.
Currently, Everi Hldgs shares are trading down 0.0%, priced at $13.48 during Tuesday's morning. This values Fox's 40,000 shares at $476,400.
Discovering Everi Hldgs: A Closer Look
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: Delving into Financials
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 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.
Key Profitability Indicators:
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Gross Margin: The company excels with a remarkable gross margin of 78.21%, indicating superior cost efficiency and profitability compared to its industry peers.
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Earnings per Share (EPS): Everi Hldgs's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.03.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 3.86.
Market Valuation:
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Price to Earnings (P/E) Ratio: Everi Hldgs's P/E ratio of 84.25 is below the industry average, suggesting the stock may be undervalued.
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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.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 6.4, Everi Hldgs presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
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Illuminating the Importance of Insider Transactions
Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Breaking Down the Significance of Transaction Codes
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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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