EVERTEC (NYSE:EVTC) Shares Gap Up – Here’s Why

Shares of EVERTEC, Inc. (NYSE:EVTC) gapped up prior to trading on Thursday . The stock had previously closed at $34.84, but opened at $36.13. EVERTEC shares last traded at $35.90, with a volume of 26,874 shares.

Wall Street Analyst Weigh In

EVTC has been the subject of several research analyst reports. Susquehanna downgraded shares of EVERTEC from a “neutral” rating to a “negative” rating and reduced their price objective for the stock from $38.00 to $28.00 in a report on Thursday, September 5th. Morgan Stanley raised shares of EVERTEC from an “underweight” rating to an “equal weight” rating and upped their price objective for the stock from $33.00 to $35.00 in a report on Thursday.

EVERTEC Stock Up 0.7 %

The company has a debt-to-equity ratio of 1.84, a quick ratio of 1.97 and a current ratio of 1.97. The company has a market capitalization of $2.31 billion, a price-to-earnings ratio of 28.58, a P/E/G ratio of 1.62 and a beta of 1.15. The stock’s fifty day simple moving average is $33.70 and its two-hundred day simple moving average is $33.88.

EVERTEC (NYSE:EVTC) last issued its quarterly earnings results on Wednesday, November 6th. The business services provider reported $0.86 earnings per share for the quarter, beating analysts’ consensus estimates of $0.73 by $0.13. EVERTEC had a net margin of 10.20% and a return on equity of 33.01%. The company had revenue of $211.80 million during the quarter, compared to the consensus estimate of $211.51 million. During the same period in the prior year, the company earned $0.72 EPS. EVERTEC’s revenue was up 22.3% on a year-over-year basis. On average, sell-side analysts anticipate that EVERTEC, Inc. will post 2.55 EPS for the current year.

EVERTEC Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 6th. Shareholders of record on Monday, October 28th will be issued a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 0.55%. The ex-dividend date is Monday, October 28th. EVERTEC’s payout ratio is 15.63%.

Insider Buying and Selling at EVERTEC

In other EVERTEC news, EVP Miguel Vizcarrondo sold 40,000 shares of the company’s stock in a transaction dated Thursday, August 29th. The shares were sold at an average price of $34.11, for a total transaction of $1,364,400.00. Following the completion of the sale, the executive vice president now directly owns 129,928 shares of the company’s stock, valued at approximately $4,431,844.08. This represents a 23.54 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.83% of the stock is owned by corporate insiders.

Institutional Trading of EVERTEC

A number of hedge funds have recently bought and sold shares of the company. Bank of Montreal Can lifted its stake in EVERTEC by 1.1% during the second quarter. Bank of Montreal Can now owns 35,084 shares of the business services provider’s stock valued at $1,191,000 after buying an additional 381 shares in the last quarter. Louisiana State Employees Retirement System lifted its stake in EVERTEC by 1.3% during the second quarter. Louisiana State Employees Retirement System now owns 32,400 shares of the business services provider’s stock valued at $1,077,000 after buying an additional 400 shares in the last quarter. nVerses Capital LLC increased its holdings in shares of EVERTEC by 12.5% in the 3rd quarter. nVerses Capital LLC now owns 3,600 shares of the business services provider’s stock valued at $122,000 after purchasing an additional 400 shares during the period. Arizona State Retirement System increased its holdings in shares of EVERTEC by 3.2% in the 2nd quarter. Arizona State Retirement System now owns 18,323 shares of the business services provider’s stock valued at $609,000 after purchasing an additional 561 shares during the period. Finally, Blair William & Co. IL increased its holdings in shares of EVERTEC by 2.2% in the 2nd quarter. Blair William & Co. IL now owns 31,918 shares of the business services provider’s stock valued at $1,061,000 after purchasing an additional 679 shares during the period. 96.80% of the stock is owned by hedge funds and other institutional investors.

EVERTEC Company Profile

EVERTEC, Inc engages in transaction processing business and financial technology in Latin America and the Caribbean. The company operates through four segments: Payment Services – Puerto Rico & Caribbean; Latin America Payments and Solutions; Merchant Acquiring; and Business Solutions. It provides merchant acquiring services, which enable point of sales and e-commerce merchants to accept and process electronic methods of payment, such as debit, credit, prepaid, and electronic benefit transfer (EBT) cards.