SAN JUAN - EVERTEC, Inc. (NYSE:EVTC), a prominent transaction processing and financial technology company in Latin America and the Caribbean, has expanded its share repurchase authorization. The company's Board of Directors has approved an increase in the share repurchase program to a total of $220 million, with an extension of the expiration date to December 31, 2025.
The company also announced the initiation of an Accelerated Share Repurchase (ASR) agreement with Bank of America (NYSE:BAC), N.A. to repurchase $70 million of its common stock. This ASR is part of the newly increased authorization and is anticipated to conclude by the third quarter of 2024.
Before this amendment, the share repurchase program had approximately $137 million remaining. EVERTEC may buy back shares through various methods including open market transactions, accelerated share repurchase programs, 10b5-1 plans, or privately negotiated transactions, taking into account business opportunities and other market conditions.
EVERTEC operates the ATH® network, a prominent personal identification number (PIN) debit network in Latin America, and provides a comprehensive suite of services for core banking, cash processing, and fulfillment. The company processes about six billion transactions annually and offers technology solutions deemed mission-critical for a diverse customer base, including financial institutions, merchants, corporations, and government agencies.
The information in this article is based on a press release.
InvestingPro Insights
As EVERTEC (NYSE:EVTC) fortifies its strategy to enhance shareholder value through an expanded share repurchase program, a glance at the company's financial health and market position via InvestingPro provides a clearer picture for investors. With a market capitalization of approximately $2.42 billion and a Price/Earnings (P/E) ratio of 29.45 based on the last twelve months as of Q4 2023, EVERTEC trades at a premium compared to some of its peers, reflecting a high earnings multiple.
InvestingPro Tips suggest that EVERTEC's net income is expected to grow this year, an encouraging sign for investors looking at the company's profitability prospects. Additionally, EVERTEC's ability to maintain dividend payments for 12 consecutive years may offer a sense of reliability and consistency to income-focused shareholders. On the flip side, it's worth noting that two analysts have revised their earnings expectations downwards for the upcoming period, which could signal caution.
From a liquidity perspective, EVERTEC's liquid assets surpass its short-term obligations, providing a cushion for operational needs and potential strategic initiatives. Despite a recent decline in stock price over the last week, with a 1 Week Price Total Return of -8.68%, the company's long-term profitability, as indicated by its positive performance over the last twelve months, remains intact.
Investors interested in a deeper dive into EVERTEC's financials and future prospects can explore additional InvestingPro Tips on https://www.investing.com/pro/EVTC. Currently, there are 9 tips available, offering a comprehensive analysis for those evaluating the company's stock. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights into EVERTEC's market position and investment potential.
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