Stock Analysis

Don't Ignore The Fact That This Insider Just Sold Some Shares In EVERTEC, Inc. (NYSE:EVTC)

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Some EVERTEC, Inc. (NYSE:EVTC) shareholders may be a little concerned to see that the President, Morgan Schuessler, recently sold a substantial US$1.4m worth of stock at a price of US$35.47 per share. That's a big disposal, and it decreased their holding size by 20%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At EVERTEC

Notably, that recent sale by Morgan Schuessler is the biggest insider sale of EVERTEC shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$33.47. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in EVERTEC didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:EVTC Insider Trading Volume March 15th 2023

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Does EVERTEC Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.5% of EVERTEC shares, worth about US$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At EVERTEC Tell Us?

An insider sold EVERTEC shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that EVERTEC is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for EVERTEC you should be aware of, and 1 of these is a bit unpleasant.

But note: EVERTEC may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

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