Everi, a credit services provider, is set to disclose its quarterly earnings results before the market opens on May 10, 2023. According to analysts, the company is expected to post earnings of $0.26 per share for the quarter. Everi has also set its guidance for FY 2023 at $1.50-$1.65 EPS and its FY23 guidance at $1.50-$1.65 EPS.
Hedge funds have recently made modifications to their holdings in Everi’s stock. BlackRock Inc. is currently the largest investor, growing its stake by 3.9% in the third quarter and now owning 6,105,613 shares valued at $99,034,000 after purchasing an additional 231,099 shares during the last quarter.
Invesco Ltd., State Street Corp., Geode Capital Management LLC, and Price T Rowe Associates Inc. MD have also grown their holdings in shares of Everi during recent quarters.
Despite modifications among investors’ holdings in Everi’s stock, research analysts remain bullish about its future prospects. Three analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock.
However, several analysts have revised their price target for Everi’s stocks recently too in light of pandemic-induced uncertainties that persist unrelenting across various sectors of different economies worldwide.
Craig Hallum dropped their price target on Everi’s stocks from $30 to $25 and set a “buy” rating for the company back in January this year when Covid-19 had started having impacts on many economies then although mild but small businesses were already going under waters gradually due to lack of financial bandwidths; Stifel Nicolaus dropped their target price from $25 to $24 while StockNews.com upgraded shares of Everi from a “buy” rating to a “strong-buy” rating back in April this year citing geared up efforts from the company to navigate through the difficulties with immense capabilities, resilience, and persistence. Finally, TheStreet upgraded Everi from a “c” rating to a “b-” rating in a report on Monday this week showcasing its optimism about the future growth potential of the company.
Despite all these predictions and forecasts, it is still not certain how the pandemic-induced market volatility will affect Everi’s performance post-earnings call on May 10th. Investors can listen to the conference call using this link.
Everi Reports Impressive Q1 2023 Earnings, But Insiders’ Significant Sales Raise Investor Concerns
Everi (NYSE:EVRI) continues to post impressive quarterly earnings results, with the credit services provider reporting a revenue of $205.40 million for Q1 2023 – up 13.9% YoY. The firm’s EPS of $0.28 also topped consensus estimates of $0.24 by $0.04 and Everi’s net margin was reported as being 15.06%, with returns on equity hitting 55.43%. Analysts predict that the company will post an EPS of $1 for both the current and next fiscal year, providing confidence to investors seeking value stocks.
Despite this positive news, shareholders should be aware that EVP David Lucchese sold 38,398 shares of Everi stock in a transaction on March 3rd, at an average price of $18.61 per share, equating to a total value of over $714k. It is worth noting that this sale constituted just a small portion of Lucchese’s holdings in the firm and may not represent any significant loss of confidence in the company.
Additionally, Director Geoffrey P Judge also sold 6,000 shares on March 3rd at an average price of $18.58 per share for a total value exceeding $111k. Together with Lucchese’s sale, insiders have collectively sold almost 50k shares worth over $923k in the past three months alone – equivalent to approximately 4.6% ownership stake in Everi.
These insider sales may raise concerns among some investors; however, it is important to note that Everi currently has a market cap of around $1.34 billion and has traded within a range between $13-21 per share during the past year – indicating relative stability compared to many other issuers within its industry peer group.
In conclusion, while experienced investors often seek out companies posting consistently strong earnings performance like Everi (NYSE: EVRI), shareholders should also remain vigilant to possible signs of insider selling, particularly when such transactions occur on a large scale.