In a recent transaction, Michael D. Rumbolz, the Executive Chairman of Everi Holdings Inc. (NYSE:EVRI), sold shares of the company's stock. On May 14, 2024, Rumbolz sold 5,040 shares at a price of $7.60 each, totaling $38,304. This sale was part of a pre-planned transaction to cover tax withholding obligations related to the settlement of restricted stock units.
The sale of shares by Rumbolz was in accordance with the company's mandatory "sell to cover" policy, which is designed to satisfy the statutory tax obligation resulting from the settlement of restricted stock units. The transaction took place during Everi Holdings' quarterly open trading window, following the settlement of restricted stock units that had been deferred from May 10, 2024. These units had originally been awarded on May 2, 2023, and fully vested on their first anniversary.
Following this transaction, Rumbolz continues to hold a substantial number of shares in the company, with a reported 1,082,062 shares remaining in his possession. It is not uncommon for executives to engage in such sales to manage their stock-based compensation and associated tax liabilities.
Everi Holdings Inc., based in Las Vegas, operates within the miscellaneous amusement and recreation services industry. As of now, the company has not released any official statement regarding this specific transaction. Investors and market watchers often monitor such insider trades for insights into executive sentiment and potential financial strategies, though they do not necessarily signify changes in company performance or outlook.
InvestingPro Insights
Recent market data for Everi Holdings Inc. (NYSE:EVRI) reflects a combination of financial resilience and market challenges. The company's gross profit margin remains robust at 80.22% for the last twelve months as of Q1 2024, underscoring its ability to maintain profitability in its operations. This impressive gross profit margin is one of the InvestingPro Tips highlighting the company's efficient cost management and strong pricing power.
Despite a recent downturn in the stock price, with a year-to-date total return of -32.56% and trading near its 52-week low, Everi Holdings appears to be in a position that could attract value investors. The InvestingPro Tips suggest that the stock is currently in oversold territory, indicating potential for a rebound, especially considering that the stock has a strong free cash flow yield, a valuation metric that could signal an undervalued stock.
From a valuation perspective, the P/E ratio has adjusted to 9.07 as of the last twelve months leading up to Q1 2024, potentially appealing to investors looking for lower-priced earnings opportunities. Additionally, the InvestingPro Tips indicate that management has been actively buying back shares, a sign that could be interpreted as confidence in the company's future prospects by its leadership.
For those considering an investment in Everi Holdings, further insights are available on InvestingPro. There are an additional 14 InvestingPro Tips that could provide deeper analysis and assist in making a more informed decision. To explore these insights, visit https://www.investing.com/pro/EVRI. Moreover, interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to a more comprehensive suite of investment tools and data.
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