Evertec (NYSE:EVTC) Hits New 52-Week High on Earnings Beat

Evertec, Inc. (NYSE:EVTC) shares reached a new 52-week high during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $35.00 and last traded at $34.7750, with a volume of 24,700 shares traded. The stock had previously closed at $31.26.

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

Evertec Announces Dividend

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

Evertec News Roundup

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

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Wall Street Zen raised shares of Evertec from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. 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. Morgan Stanley set a $34.00 price objective on Evertec in a report on Thursday, August 6th. Finally, Weiss Ratings upgraded Evertec from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, October 21st. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $35.50.

Insider Activity at Evertec

In other news, Director Aldo Polak sold 1,094 shares of the firm’s stock in a transaction that occurred on 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 in the company, valued at approximately $450,964.13. This trade represents a 6.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Paola Perez-Surillo sold 17,486 shares of the company’s stock in a transaction on 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 sale, the executive vice president owned 46,421 shares of the company’s stock, valued at approximately $1,465,046.76. This trade represents a 27.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 20,580 shares of company stock valued at $644,673 over the last three months. Corporate insiders own 1.13% of the company’s stock.

Institutional Investors Weigh In On Evertec

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Royal Bank of Canada increased its holdings in Evertec by 1.4% in the first quarter. Royal Bank of Canada now owns 34,824 shares of the business services provider’s stock valued at $983,000 after buying an additional 479 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Evertec by 13.9% during the 1st quarter. EverSource Wealth Advisors LLC now owns 4,302 shares of the business services provider’s stock valued at $121,000 after acquiring an additional 524 shares during the period. Cetera Investment Advisers boosted its stake in shares of Evertec by 6.2% during the 1st quarter. Cetera Investment Advisers now owns 13,078 shares of the business services provider’s stock worth $369,000 after acquiring an additional 765 shares in the last quarter. Allworth Financial LP boosted its stake in shares of Evertec by 166.9% during the 2nd quarter. Allworth Financial LP now owns 1,372 shares of the business services provider’s stock worth $38,000 after acquiring an additional 858 shares in the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new stake in shares of Evertec during the 2nd quarter worth approximately $37,000. 96.80% of the stock is owned by hedge funds and other institutional investors.

Evertec Trading Up 10.4%

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

Evertec Company Profile

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.