Revealing a significant insider sell on May 12, Miguel Vizcarrondo, Executive Vice President at Evertec EVTC, as per the latest SEC filing.
What Happened: Vizcarrondo’s decision to sell 40,000 shares of Evertec was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $1,457,420.
In the Tuesday’s morning session, Evertec‘s shares are currently trading at $36.3, experiencing a down of 0.6%.
All You Need to Know About Evertec
Evertec Inc is a transaction processing business in Latin America and the Caribbean. Its business segments are Merchant Acquiring, Payment Services – Puerto Rico & Caribbean, Latin America Payments and Solutions, and Business Solutions which derive maximum revenue. The company serves a diversified customer base of financial institutions, merchants, corporations, and government agencies with mission-critical technology solutions that enable them to issue, process, and accept transactions securely. It derives maximum revenue from Latin America Payments and Solutions. Geographically, it operates in Puerto Rico, Caribbean, and Latin America.
Evertec: Delving into Financials
Revenue Growth: Evertec displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 11.43%. This indicates a notable increase in the company’s top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Interpreting Earnings Metrics:
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Gross Margin: The company shows a low gross margin of 49.91%, suggesting potential challenges in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Evertec’s EPS is below the industry average. The company faced challenges with a current EPS of 0.51. This suggests a potential decline in earnings.
Debt Management: With a below-average debt-to-equity ratio of 1.76, Evertec adopts a prudent financial strategy, indicating a balanced approach to debt management.
Valuation Overview:
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Price to Earnings (P/E) Ratio: Evertec’s P/E ratio of 18.38 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.72, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 9.03, Evertec’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
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Navigating the Impact of Insider Transactions on Investments
It’s important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Important Transaction Codes
When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 Evertec’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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