What Happened?
Shares of payment processing company EVERTEC (NYSE:EVTC) jumped 2% in the morning session after it secured an additional $150 million loan facility to improve its financial position.
According to company filings, Evertec and its subsidiary entered into a fifth amendment to their existing credit agreement. The proceeds from this new $150 million term loan B facility were used to repay outstanding debt under a revolving credit line. This move was seen as a positive step, as it could enhance the company's financial flexibility and operational capacity by restructuring its debt.
After the initial pop the shares cooled down to $29.97, up 2.4% from previous close.
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What Is The Market Telling Us
EVERTEC’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 22 days ago when the stock gained 6.2% on the news that the stock's positive momentum continued as the company reported earnings results that topped analyst estimates. The business services provider posted earnings of $0.92 per share for the quarter, which was $0.03 better than the consensus forecast of $0.89. This positive surprise appeared to capture investor attention. The move higher came even as some analysts adjusted their outlooks. For instance, Keefe, Bruyette & Woods kept its "Outperform" rating but cut its price target on the stock to $40 from $44. Similarly, Deutsche Bank also lowered its price target to $30 from $35 while keeping a "Hold" rating.
EVERTEC is down 13.1% since the beginning of the year, and at $29.97 per share, it is trading 21.9% below its 52-week high of $38.37 from May 2025. Investors who bought $1,000 worth of EVERTEC’s shares 5 years ago would now be looking at an investment worth $782.92.
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