EVRI, also known as Global Cash Access Holdings Inc (NYSE:EVRI), has reached a new 52-week high, with its stock price soaring to $13.45. This milestone reflects a significant uptrend in the company's market performance, underpinned by a robust 1-year change of 22.78%. Investors have shown increased confidence in EVRI's business model and growth prospects, propelling the stock to this new high. The company's strategic initiatives and operational advancements over the past year have played a crucial role in driving the stock's value, rewarding shareholders with substantial gains.
In other recent news, Everi Holdings has cleared a significant regulatory milestone in its proposed transaction with International Game Technology (NYSE:IGT) PLC and Apollo Global Management (NYSE:APO) affiliates. The expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period brings the deal closer to completion. The acquisition, announced in July, is still subject to customary closing conditions and further regulatory approvals.
In relation to this, Everi Holdings' stock rating has been adjusted by several firms. B.Riley maintained a Neutral rating, revising its EBITDA estimates for 2024 and 2025 to $325.4 million and $346.9 million, respectively. This reflects caution due to potential delays in product transitions within Everi's games business. Stifel downgraded Everi's stock rating from Buy to Hold following the acquisition announcement, while Raymond (NS:RYMD) James adjusted Everi's rating from a 'Strong Buy' to a 'Market Perform' status.
Everi's first-quarter results showed a decrease in its Games segment but growth in its Fintech cash access services, with adjusted EBITDA falling to $80.3 million. However, the company anticipates revenue growth and a return to growth in Fintech revenues in the second half of 2024. These are the recent developments for Everi Holdings.
InvestingPro Insights
EVRI's recent achievement of a new 52-week high is further supported by data from InvestingPro. The stock's impressive 6-month price total return of 85.71% aligns with the article's mention of significant gains for shareholders. This surge has brought EVRI to trade at 99.78% of its 52-week high, confirming the strong upward momentum discussed in the article.
InvestingPro Tips highlight EVRI's impressive gross profit margins, which is reflected in the company's latest gross profit margin of 80.04% for the last twelve months as of Q3 2024. This robust profitability metric underscores the company's operational efficiency and may be a key factor in investor confidence.
Another relevant InvestingPro Tip notes that EVRI is trading at a high earnings multiple, with a P/E ratio of 87.14. This elevated valuation suggests that investors are pricing in strong future growth expectations, aligning with the positive market sentiment described in the article.
For readers interested in a more comprehensive analysis, InvestingPro offers 9 additional tips that could provide deeper insights into EVRI's financial health and market position.
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