Making a noteworthy insider sell on May 15, Daniel Brignardello, Executive Vice President at Evertec EVTC, is reported in the latest SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Brignardello sold 7,641 shares of Evertec. The total transaction value is $279,688.
Evertec shares are trading down 0.0% at $37.27 at the time of this writing on Friday morning.
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.
Key Indicators: Evertec’s Financial Health
Revenue Growth: Evertec’s remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 11.43%. This signifies a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.
Evaluating Earnings Performance:
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Gross Margin: The company faces challenges with a low gross margin of 49.91%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Evertec’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.51.
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.
In-Depth Valuation Examination:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 18.73 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 2.78 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio of 9.17 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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Why Pay Attention to Insider Transactions
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Deciphering Transaction Codes in Insider Filings
Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.
