EVERTEC Executive VP & COO Diego Viglianco Sells 39% Of Holding

We wouldn't blame EVERTEC, Inc. (NYSE:EVTC) shareholders if they were a little worried about the fact that Diego Viglianco, the Executive VP & COO recently netted about US$970k selling shares at an average price of US$37.02. That sale reduced their total holding by 39% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for EVERTEC

EVERTEC Insider Transactions Over The Last Year

The Executive VP, Joaquin Castrillo-Salgado, made the biggest insider sale in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$36.08 each. That means that even when the share price was below the current price of US$37.25, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 71% of Joaquin Castrillo-Salgado's holding.

EVERTEC insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does EVERTEC Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that EVERTEC insiders own 1.1% of the company, worth about US$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The EVERTEC Insider Transactions Indicate?

Insiders sold EVERTEC shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, EVERTEC makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for EVERTEC (1 doesn't sit too well with us) you should be aware of.

Of course EVERTEC may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.