Everi Holdings Inc. (NYSE:EVRI) has reported insider trading activity by its President & CEO, Randy L. Taylor, who sold shares in the company. The transactions, which took place on August 9, 2024, involved the sale of a total of 29,222 shares of common stock at a price of $12.95 per share, resulting in a total value of $378,424.
The sales were part of a "sell to cover" transaction, which is a common method for executives to satisfy tax withholding obligations upon the vesting of restricted stock units (RSUs) or performance stock units (PSUs). According to the footnotes in the filing, the shares sold by Taylor were to cover tax withholding obligations connected with the settlement of performance and restricted stock units. The sales were mandated by the company's policy requiring such tax obligations to be funded through a "sell to cover" transaction.
In addition to the sales, the filing also reported the acquisition of shares by Taylor. On August 8, 2024, Taylor acquired 59,830 shares of common stock in connection with the vesting of performance stock units related to the achievement of certain criteria. Furthermore, on the same day, 13,933 shares were acquired upon the vesting of restricted stock units. Both vesting events were part of long-term incentive plans established on May 19, 2021, and their release was deferred to align with the company's quarterly open trading window.
The reported transactions reflect the executive's compliance with tax obligations and company policies regarding equity compensation. Following these transactions, Taylor's ownership in the company stands at 794,822 shares of common stock.
Investors and market watchers often monitor insider trading activity for insights into an executive's view of the company's prospects and for signs of alignment between management's interests and those of shareholders. Everi Holdings Inc., incorporated in Delaware and based in Las Vegas, operates in the miscellaneous amusement and recreation services industry.
In other recent news, Everi Holdings has experienced significant developments, including a downgrade from Stifel following the announcement of Apollo Global Management (NYSE:APO)'s acquisition of the company. The deal, which offers $14.25 per share in cash, was deemed to provide a timely return for shareholders, despite Everi's valuation appearing modest compared to its peers. While a competing offer is considered unlikely, the acquisition process is expected to proceed smoothly, with regulatory approval not seen as a significant hurdle.
In addition, Everi Holdings is also set to merge with International Game Technology (NYSE:IGT)'s Global Gaming and Play Digital businesses, a move aimed at expanding their market presence and enhancing product offerings. This merger is expected to be finalized between late 2024 and early 2025.
Raymond James also adjusted Everi Holdings' stock rating from 'Strong Buy' to 'Market Perform', following the announcement of Apollo's acquisition. Truist Securities, on the other hand, reduced its price target for Everi Holdings to $10 from the previous $11, while maintaining a Hold rating on the stock.
Everi Holdings' first-quarter results showed a decrease in its Games segment, but its Fintech cash access services experienced growth. Adjusted EBITDA fell to $80.3 million from $92.5 million in the prior year's quarter. However, the company anticipates revenue growth and a return to growth in Fintech revenues in the second half of 2024. These are among the recent developments concerning Everi Holdings.
InvestingPro Insights
Everi Holdings Inc. (NYSE:EVRI) has been the subject of recent insider trading activity, which can offer valuable clues about the company's financial health and future prospects. To provide additional context for these insider transactions, we turn to real-time data and insights from InvestingPro.
InvestingPro Data shows that Everi Holdings Inc. has a market capitalization of $1.11 billion and operates with impressive gross profit margins of 80.39% over the last twelve months as of Q2 2024. This high margin indicates the company's ability to manage its cost of goods sold effectively, which is a positive sign for investors. The company's P/E ratio stands at 26.06, which adjusts to 21.16 for the last twelve months as of Q2 2024, suggesting that investors are expecting growth in earnings.
However, the InvestingPro Tips highlight that the stock is currently in overbought territory according to the Relative Strength Index (RSI), and it generally trades with high price volatility. This could mean that the stock price may be due for a correction if market sentiment shifts. Notably, the stock has seen a strong return over the last three months, with a 67.96% price total return, which may have contributed to its overbought status.
For investors interested in Everi Holdings Inc., it is worth noting that the company does not pay a dividend to shareholders, which could influence the investment strategy for those seeking regular income from their investments.
For those looking to delve deeper into Everi Holdings Inc., there are additional InvestingPro Tips available at https://www.investing.com/pro/EVRI, which can provide further insights into the company's performance and valuation metrics.
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