In recent financial activity within Everi Holdings Inc. (NYSE:EVRI), a notable transaction has been reported by Todd A. Valli, the company's Senior Vice President and Chief Accounting Officer (SVP, CAO). According to a new filing, Valli sold a total of 1,527 shares of common stock, resulting in an aggregate sale exceeding $11,000.
The transactions, which took place on May 14, 2024, saw shares being sold at prices ranging from $7.61 to $7.73. This sale was part of a "sell to cover" policy mandated by the company, which is implemented to satisfy tax withholding obligations that arise upon the settlement of restricted stock units.
The sale occurred in the context of the settlement of restricted stock units that had been previously awarded to Valli. The restricted stock units, which are a contingent right to receive shares of common stock, were part of compensation packages that vest over a period. Specifically, these units were part of awards granted in May 2022 and May 2023, set to vest in equal installments on the anniversary dates following the grant.
While Valli engaged in the sale of shares to cover tax obligations, there were also acquisitions made on May 10, 2024, which did not result in any financial outlay. It's important to note that these transactions do not reflect market purchases but are part of the vesting process of restricted stock units.
Everi Holdings Inc., with its headquarters in Las Vegas, Nevada, operates within the miscellaneous amusement and recreation services sector. The company's stock is publicly traded, and these transactions are part of the regular disclosure requirements for executives and significant shareholders.
Investors and market watchers often scrutinize such filings for insights into executive confidence and company performance. However, transactions like these, which are related to compensation and tax obligations, are routine and should not necessarily be interpreted as indicative of the executive's view of the company's future performance.
InvestingPro Insights
Everi Holdings Inc. (NYSE:EVRI) has been navigating a challenging market environment, as reflected in their recent stock performance metrics. The company's market capitalization stands at $639.82 million, and it currently trades at a P/E ratio of 10.84. This valuation is adjusted to a P/E ratio of 9.07 when considering the last twelve months as of Q1 2024, suggesting a potentially undervalued stock relative to its earnings.
One of the more standout figures in Everi's financials is the gross profit margin, which has been impressive at 80.22% in the last twelve months as of Q1 2024. This high margin indicates that Everi has been effective in controlling the costs associated with their revenue. However, it's important to note that revenue growth has slightly declined by 1.32% over the same period.
InvestingPro Tips highlight that management has been aggressively buying back shares, which is often a sign of confidence in the company's prospects and perceived undervaluation. Moreover, Everi's shareholder yield is high, which could be attractive to investors looking for companies that return value through buybacks and other means. These actions could be a strategic move to bolster shareholder value amidst the stock's recent performance, which includes trading near its 52-week low and experiencing a significant price decline over the last year.
For those interested in deeper analysis and more InvestingPro Tips, Everi Holdings Inc. currently has 15 additional tips listed on InvestingPro, which can be found at https://www.investing.com/pro/EVRI. To gain access to these insights, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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