Evertec (NYSE:EVTC) Reaches New 1-Year High After Earnings Beat

Shares of Evertec, Inc. (NYSE:EVTC) reached a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $35.00 and last traded at $34.7750, with a volume of 24,700 shares changing hands. The stock had previously closed at $31.26.

The business services provider reported $1.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.98 by $0.09. Evertec had a net margin of 9.80% and a return on equity of 32.07%. The business had revenue of $282.99 million during the quarter, compared to analysts’ expectations of $272.94 million. During the same period last year, the company posted $0.92 EPS. The company’s revenue was up 23.8% on a year-over-year basis.

Evertec Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Monday, November 9th will be issued a dividend of $0.05 per share. The ex-dividend date is Monday, November 9th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.6%. Evertec’s payout ratio is 12.99%.

More Evertec News

Here are the key news stories impacting Evertec this week:

• Positive Sentiment: Evertec reported Q3 adjusted earnings of $1.07 per share, ahead of the roughly $0.98 consensus and up from $0.92 a year earlier. Revenue rose 24% to $283.0 million, topping estimates of about $272.9 million. Adjusted EBITDA increased 19% to $110.5 million. The earnings and revenue beats, alongside strong growth, may support investor sentiment. Evertec Q3 results
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target to $42 from $38 and maintained an Outperform rating, signaling increased analyst optimism about EVTC’s prospects. Price target update

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on EVTC. Keefe, Bruyette & Woods upped their price objective on shares of Evertec from $38.00 to $42.00 and gave the company an “outperform” rating in a research note on Wednesday. Weiss Ratings upgraded Evertec from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, October 21st. Morgan Stanley set a $34.00 price target on Evertec in a report on Thursday, August 6th. Finally, Wall Street Zen raised Evertec from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Evertec has an average rating of “Hold” and a consensus price target of $35.50.

Insider Activity

In other news, EVP Paola Perez-Surillo sold 17,486 shares of the company’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $31.56, for a total transaction of $551,858.16. Following the completion of the transaction, the executive vice president owned 46,421 shares of the company’s stock, valued at $1,465,046.76. This represents a 27.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Aldo Polak sold 1,094 shares of the company’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $30.37, for a total transaction of $33,224.78. Following the transaction, the director directly owned 14,849 shares of the company’s stock, valued at approximately $450,964.13. This represents a 6.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 20,580 shares of company stock valued at $644,673 in the last 90 days. 1.13% of the stock is owned by company insiders.

Hedge Funds Weigh In On Evertec

Large investors have recently bought and sold shares of the stock. Public Employees Retirement System of Ohio acquired a new position in shares of Evertec in the 2nd quarter valued at $37,000. Integrated Wealth Concepts LLC purchased a new stake in shares of Evertec during the 2nd quarter valued at $38,000. Allworth Financial LP acquired a new stake in shares of Evertec during the 2nd quarter worth $38,000. Global Retirement Partners LLC acquired a new stake in shares of Evertec during the 2nd quarter worth $48,000. Finally, Bessemer Group Inc. raised its position in shares of Evertec by 961.4% in the 1st quarter. Bessemer Group Inc. now owns 2,006 shares of the business services provider’s stock worth $57,000 after buying an additional 1,817 shares during the period. Hedge funds and other institutional investors own 96.80% of the company’s stock.

Evertec Stock Up 10.4%

The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.89. The firm has a market capitalization of $2.06 billion, a PE ratio of 22.40, a price-to-earnings-growth ratio of 0.93 and a beta of 0.71. The firm has a 50-day moving average of $29.68 and a two-hundred day moving average of $28.42.

About Evertec

Evertec, Inc is a payment processing and financial technology company that provides transaction-processing services and business technology solutions to financial institutions, merchants, government agencies and other organizations. The company operates through businesses that support electronic payments, merchant acquiring, payment networks and related financial services.

Its products and services include debit and credit card processing, point-of-sale and e-commerce payment acceptance, automated teller machine processing, prepaid services, electronic bill payment and money transfer solutions.