Evertec (EVTC) Shares Up 15.9% Following Earnings Beat

Shares of Evertec Inc (NYSE:EVTC) shot up 15.9% during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $26.43 and last traded at $26.08. 2,276,314 shares traded hands during trading, an increase of 217% from the average session volume of 717,407 shares. The stock had previously closed at $22.50.

The business services provider reported $0.45 EPS for the quarter, topping the Zacks’ consensus estimate of $0.41 by $0.04. Evertec had a return on equity of 65.64% and a net margin of 16.52%. The firm had revenue of $112.02 million for the quarter, compared to the consensus estimate of $108.94 million. During the same quarter last year, the business posted $0.33 earnings per share. The firm’s revenue was up 9.0% compared to the same quarter last year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 7th. Investors of record on Monday, November 5th will be given a dividend of $0.05 per share. The ex-dividend date of this dividend is Friday, November 2nd. This represents a $0.20 dividend on an annualized basis and a yield of 0.75%. Evertec’s payout ratio is 13.61%.

A number of brokerages recently commented on EVTC. Zacks Investment Research upgraded Evertec from a “hold” rating to a “strong-buy” rating and set a $28.00 price objective on the stock in a research report on Thursday, July 26th. Deutsche Bank lifted their price objective on Evertec from $20.00 to $25.00 and gave the stock a “hold” rating in a research report on Wednesday, August 1st. Morgan Stanley lifted their price objective on Evertec from $23.00 to $25.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 1st. Finally, Raymond James upgraded Evertec from a “market perform” rating to an “outperform” rating in a research report on Wednesday. Five equities research analysts have rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $21.33.

In other Evertec news, insider Miguel Vizcarrondo sold 20,000 shares of Evertec stock in a transaction on Thursday, September 13th. The stock was sold at an average price of $24.31, for a total value of $486,200.00. Following the sale, the insider now owns 195,887 shares in the company, valued at $4,762,012.97. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Philip E. Steurer sold 10,000 shares of Evertec 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 completion of the sale, the chief operating officer now owns 123,930 shares in the company, valued at approximately $3,022,652.70. The disclosure for this sale can be found here. Insiders sold 73,500 shares of company stock worth $1,759,985 in the last 90 days. Company insiders own 0.76% of the company’s stock.

A number of large investors have recently bought and sold shares of the business. Balter Liquid Alternatives LLC raised its position in Evertec by 14.9% in the second quarter. Balter Liquid Alternatives LLC now owns 20,173 shares of the business services provider’s stock valued at $444,000 after purchasing an additional 2,614 shares during the period. Rhumbline Advisers raised its position in Evertec by 3.2% in the second quarter. Rhumbline Advisers now owns 143,326 shares of the business services provider’s stock valued at $3,132,000 after purchasing an additional 4,402 shares during the period. State Board of Administration of Florida Retirement System raised its position in Evertec by 20.1% in the third quarter. State Board of Administration of Florida Retirement System now owns 28,074 shares of the business services provider’s stock valued at $677,000 after purchasing an additional 4,704 shares during the period. Harvest Fund Management Co. Ltd grew its stake in shares of Evertec by 392.3% in the third quarter. Harvest Fund Management Co. Ltd now owns 6,238 shares of the business services provider’s stock valued at $150,000 after buying an additional 4,971 shares in the last quarter. Finally, Legal & General Group Plc grew its stake in shares of Evertec by 5.8% in the second quarter. Legal & General Group Plc now owns 128,005 shares of the business services provider’s stock valued at $2,803,000 after buying an additional 6,968 shares in the last quarter. Institutional investors own 78.46% of the company’s stock.

The company has a quick ratio of 1.63, a current ratio of 1.63 and a debt-to-equity ratio of 2.77. The company has a market cap of $1.64 billion, a price-to-earnings ratio of 18.22 and a beta of 1.27.

Evertec Company Profile (NYSE:EVTC)

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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