EVERTEC, Inc. Announces Quarterly Dividend of $0.05

EVERTEC, Inc. (NYSE: EVTC) has officially announced a quarterly dividend. This declaration was made on Thursday, February 20th, as reported by various news outlets. Shareholders who are on record by Monday, March 3rd will receive a dividend of $0.05 per share. The payments will be issued on Friday, March 21st. This translates to an annual dividend of $0.20, yielding 0.60% for investors.

In terms of financial health, EVERTEC has a payout ratio of 5.8%, indicating that the company’s earnings are more than sufficient to cover its dividend payments. Analysts predict that EVERTEC’s earnings will reach $2.70 per share in the coming year, suggesting that the company will maintain its capacity to meet its $0.20 annual dividend, with an anticipated future payout ratio of 7.4%.

Stock Performance

On the trading day following the announcement, EVERTEC shares experienced a decline of 1.6%. The stock traded down $0.54, closing at $33.45. A total of 333,353 shares were exchanged, surpassing the average volume of 266,096. As of now, EVERTEC holds a market capitalization of $2.13 billion, with a price-to-earnings ratio of 26.13, a P/E/G ratio of 1.48, and a beta of 1.15. The company’s debt-to-equity ratio stands at 1.84, with both a quick ratio and current ratio of 1.97. The stock’s 50-day simple moving average is recorded at $33.47, while the 200-day simple moving average is at $33.69. Over the past year, the stock has seen a low of $28.76 and a high of $41.57.

Insider Trading Activities

In other company news, several insiders have recently sold shares. Executive Vice President Daniel Brignardello sold 3,842 shares on December 2nd at an average price of $36.00, totaling $138,312. After this sale, he owns around 32,481 shares valued at approximately $1,169,316, indicating a 10.58% reduction in his stake. Similarly, CFO Joaquin A. Castrillo-Salgado sold 48,453 shares at an average price of $36.08, with a total transaction value of about $1,748,184.24, leaving him with 54,998 shares valued at roughly $1,984,327.84, representing a 46.84% decrease in his position. In total, insiders sold 68,308 shares valued at $2,440,112 during the last quarter, with insiders collectively owning 0.83% of the company’s stock.

Analysts' Insights

In the realm of analyst coverage, several firms have recently provided updates on EVERTEC. William Blair maintained an “outperform” rating in a note dated December 18th. Morgan Stanley also made an adjustment, moving their rating from “underweight” to “equal weight” and increasing their price target on the stock from $33.00 to $35.00 in a note published on November 21st. Overall, one analyst has rated the stock as a sell, two have issued a hold rating, and two analysts recommend it as a buy. According to MarketBeat.com, EVERTEC holds a consensus rating of “Hold” with an average price target set at $35.00.

Company Overview

EVERTEC, Inc. specializes in transaction processing and financial technology services across Latin America and the Caribbean. Its operations are divided into four main segments: Payment Services - Puerto Rico & Caribbean; Latin America Payments and Solutions; Merchant Acquiring; and Business Solutions. The company offers merchant acquiring services, enabling businesses to accept various electronic payment methods, including debit, credit, and prepaid cards.

Dividend, Stocks, Finance