Mark F. Labay, Executive Vice President and Chief Financial Officer of Everi Holdings Inc. (NYSE:EVRI), recently sold a significant portion of his shares in the company. According to a filing with the Securities and Exchange Commission, Labay sold a total of 50,000 shares on November 25, 2024, at a weighted average price of $13.38 per share. This transaction amounted to approximately $669,000.
The shares sold were related to vested stock units, with 42,455 shares originating from Performance Stock Units granted in May 2020, and 7,545 shares from Restricted Stock Units granted in May 2018 and March 2020. Following these sales, Labay retains ownership of 142,426 shares in Everi Holdings.
In other recent news, Everi Holdings has successfully cleared a significant regulatory hurdle in its proposed transaction with International Game Technology PLC (NYSE:IGT) and entities managed by affiliates of Apollo Global Management (NYSE:APO). This development brings the deal one step closer to completion, pending customary closing conditions and remaining regulatory approvals. The transaction involves the simultaneous acquisition of Everi and IGT’s Gaming & Digital business by a new holding company owned by funds managed by Apollo Global Management affiliates.
B.Riley has maintained a Neutral rating on Everi Holdings, adjusting its EBITDA estimates for 2024 and 2025 to $325.4 million and $346.9 million, respectively. This revision reflects caution due to potential delays in product transitions within Everi's games business, particularly in anticipation of the upcoming merger with International Game Technology's games division.
Everi's stock rating was downgraded by Stifel from Buy to Hold following the announcement of its acquisition by Apollo Global Management. Concurrently, Everi announced plans to merge with International Game Technology's Global Gaming and Play Digital businesses. Raymond (NS:RYMD) James also adjusted Everi's stock rating from a 'Strong Buy' to a 'Market Perform' status. These are the recent developments for Everi Holdings.
InvestingPro Insights
Following Mark F. Labay's recent sale of 50,000 shares, it's worth noting some key financial metrics and insights about Everi Holdings Inc. (NYSE:EVRI) from InvestingPro.
As of the latest data, Everi Holdings has a market capitalization of $1.16 billion. The company's stock is currently trading near its 52-week high, with a price-to-earnings ratio of 50.34 based on the last twelve months as of Q3 2024. This relatively high P/E ratio suggests that investors are placing a premium on the company's earnings potential.
One of the InvestingPro Tips highlights that Everi operates with impressive gross profit margins. This is supported by the data showing a gross profit margin of 80.04% for the last twelve months as of Q3 2024. Such high margins could indicate strong pricing power or efficient cost management, which may be attractive to investors despite the recent insider sale.
Another relevant InvestingPro Tip mentions that the stock's valuation implies a strong free cash flow yield. This could be seen as a positive sign for the company's financial health and ability to generate cash, potentially offsetting concerns about the insider sale.
It's worth noting that Everi's stock has shown significant price movement over the past six months, with a total return of 102.1%. This substantial increase aligns with another InvestingPro Tip suggesting that the stock has experienced a large price uptick over the last six months.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Everi Holdings, providing a deeper understanding of the company's financial position and market performance.
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