In a recent move at Everi Holdings Inc. (NYSE:EVRI), EVP and Chief Legal Officer, Kate C. Lowenhar-Fisher, has sold a portion of her company stock, totaling over $150,000. The transactions took place on August 9, 2024, with shares sold at a price of $12.95 each.
According to the latest filings, Lowenhar-Fisher sold 9,754 shares for a total of approximately $126,174 and disposed of an additional 2,272 shares, accumulating around $29,432. Following these transactions, her direct ownership in the company has decreased to 68,477 common shares.
The sales were conducted to cover tax withholding obligations as part of the settlement process for performance stock units and restricted stock units that vested. These vesting events were tied to the third anniversary of the grant date of May 19, 2021. The execution of these transactions was in line with the company's policy, which mandates a "sell to cover" approach to satisfy tax withholding requirements.
Everi Holdings Inc., based in Las Vegas, Nevada, operates within the miscellaneous amusement and recreation services sector. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol EVRI.
Investors and market watchers often keep an eye on insider transactions like these for insights into executive sentiment and potential future stock performance. However, it's important to note that such sales can be part of standard financial planning for executives and do not necessarily indicate a lack of confidence in the company's prospects.
In other recent news, Everi Holdings has been the subject of multiple rating changes following the announcement of its acquisition by Apollo Global Management (NYSE:APO). Stifel downgraded Everi's stock from Buy to Hold, despite raising the price target to $14.25, in light of the acquisition. Similarly, Raymond James adjusted its rating from a 'Strong Buy' to a 'Market Perform' status, following the acquisition news. Truist Securities also adjusted its outlook on Everi Holdings, reducing the price target to $10 from the previous $11, while maintaining a Hold rating on the stock.
Everi's acquisition by Apollo and the company's plans to merge with International Game Technology (NYSE:IGT)'s Global Gaming and Play Digital businesses are among the recent developments. The merger aims to enhance product offerings and expand market presence, with completion expected between late 2024 and early 2025.
Everi's first-quarter results showed a dip in its Games segment, but growth in its Fintech cash access services. 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 updates are based on recent analyst notes and company announcements.
InvestingPro Insights
As investors digest the news of EVP and Chief Legal Officer Kate C. Lowenhar-Fisher's stock sale at Everi Holdings Inc., it's crucial to consider the company's financial health and market performance to understand the broader context. According to InvestingPro data, Everi Holdings Inc. boasts a robust gross profit margin of 80.39% over the last twelve months as of Q2 2024, highlighting the company's ability to maintain profitability despite market fluctuations.
Moreover, Everi's stock has demonstrated a strong return over the past three months, with a total return of 67.96%. This performance is a critical factor for investors, as it reflects the stock's recent momentum which might influence future investment decisions. However, it's important to note that the company's stock price movements have been quite volatile, which is a key consideration for risk assessment.
InvestingPro Tips further reveal that analysts predict the company will be profitable this year, underscoring a positive outlook from industry experts. For investors seeking more comprehensive analysis and additional insights, there are 9 more InvestingPro Tips available for Everi Holdings Inc., which can be found at https://www.investing.com/pro/EVRI.
Lastly, Everi Holdings Inc. is trading at a Price / Book multiple of 4.5, which might suggest the stock is valued relatively high compared to its book value. This metric, combined with the fact that the stock is currently in overbought territory according to the Relative Strength Index (RSI), could influence investment strategies, particularly for value-focused investors.
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