Zacks Investment Research upgraded shares of Evertec (NYSE:EVTC) from a hold rating to a buy rating in a research report sent to investors on Friday morning. Zacks Investment Research currently has $30.00 price objective on the business services provider’s stock.
According to Zacks, “Evertec, Inc. is engaged in transaction processing business primarily in Latin America and the Caribbean. The Company operates through divisions which consist of Merchant Acquiring Solutions, Payment Processing and Business Solutions. It offers ATH network, payment processing, card products processing, electronic benefit transfer services, information technology services, database management services, printing centre and document mailing, cash processing, business processes outsourcing services as well as payment solutions, point-of-sale systems and accessories to receive payments. Evertec, Inc. is based in San Juan, Puerto Rico. “
Several other brokerages have also recently weighed in on EVTC. Raymond James raised Evertec from a market perform rating to an outperform rating in a research note on Wednesday, October 31st. Morgan Stanley raised their target price on Evertec from $23.00 to $25.00 and gave the company an equal weight rating in a research note on Wednesday, August 1st. Finally, Deutsche Bank raised their target price on Evertec from $20.00 to $25.00 and gave the company a hold rating in a research note on Wednesday, August 1st. Five research analysts have rated the stock with a hold rating and five have given a buy rating to the company. The company has a consensus rating of Buy and a consensus target price of $21.67.
Evertec (NYSE:EVTC) last announced its earnings results on Tuesday, October 30th. The business services provider reported $0.45 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.41 by $0.04. Evertec had a return on equity of 62.09% and a net margin of 16.52%. The business had revenue of $112.02 million during the quarter, compared to analysts’ expectations of $108.94 million. During the same quarter last year, the business posted $0.33 earnings per share. The company’s quarterly revenue was up 9.0% on a year-over-year basis. As a group, sell-side analysts predict that Evertec will post 1.66 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, December 7th. Stockholders of record on Monday, November 5th will be issued a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a dividend yield of 0.70%. The ex-dividend date of this dividend is Friday, November 2nd. Evertec’s dividend payout ratio is 13.61%.
In related news, EVP Guillermo Rospigliosi bought 2,870 shares of Evertec stock in a transaction dated Saturday, August 11th. The stock was acquired at an average cost of $17.41 per share, with a total value of $49,966.70. Following the completion of the acquisition, the executive vice president now directly owns 51,687 shares in the company, valued at approximately $899,870.67. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Philip E. Steurer sold 10,000 shares of the company’s stock in a transaction on Friday, August 10th. The shares were sold at an average price of $24.39, for a total value of $243,900.00. Following the sale, the chief operating officer now directly owns 123,930 shares of the company’s stock, valued at $3,022,652.70. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 73,500 shares of company stock valued at $1,759,985. 0.76% of the stock is currently owned by company insiders.
A number of institutional investors have recently made changes to their positions in EVTC. JPMorgan Chase & Co. lifted its stake in Evertec by 82.6% in the 1st quarter. JPMorgan Chase & Co. now owns 218,882 shares of the business services provider’s stock worth $3,579,000 after acquiring an additional 99,020 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in Evertec by 431.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 560,126 shares of the business services provider’s stock worth $9,158,000 after acquiring an additional 454,758 shares in the last quarter. Legal & General Group Plc lifted its stake in Evertec by 410.6% in the 1st quarter. Legal & General Group Plc now owns 121,037 shares of the business services provider’s stock worth $1,969,000 after acquiring an additional 97,333 shares in the last quarter. Summit Trail Advisors LLC lifted its stake in Evertec by 11,437.9% in the 1st quarter. Summit Trail Advisors LLC now owns 154,838 shares of the business services provider’s stock worth $155,000 after acquiring an additional 153,496 shares in the last quarter. Finally, Principal Financial Group Inc. lifted its stake in Evertec by 1,053.2% in the 1st quarter. Principal Financial Group Inc. now owns 497,065 shares of the business services provider’s stock worth $8,127,000 after acquiring an additional 453,963 shares in the last quarter. 78.46% of the stock is owned by hedge funds and other institutional investors.
EVERTEC, Inc and its subsidiaries engage in transaction processing business serving financial institutions, merchants, corporations, and government agencies in Latin America and the Caribbean. The company operates through four segments: Payment Services – Puerto Rico & Caribbean, Payment Services – Latin America, Merchant Acquiring, and Business Solutions.
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