Some EVERTEC, Inc. (NYSE:EVTC) shareholders may be a little concerned to see that the Executive VP and Chief Product & Innovation Officer, Guillermo Rospigliosi, recently sold a substantial US$964k worth of stock at a price of US$39.43 per share. That diminished their holding by a very significant 89%, which arguably implies a strong desire to reallocate capital.
EVERTEC Insider Transactions Over The Last Year
The Executive VP of Payment Services, Miguel Vizcarrondo Carrión, made the biggest insider sale in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$40.28 each. So what is clear is that an insider saw fit to sell at around the current price of US$36.69. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last year EVERTEC insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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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. EVERTEC insiders own about US$21m worth of shares. That equates to 0.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At EVERTEC Tell Us?
An insider sold stock recently, but they haven't been buying. 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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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. At Simply Wall St, we found 1 warning sign for EVERTEC that deserve your attention before buying any shares.
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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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This article by Simply Wall St is general in nature. 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.
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