EVERTEC INC (EVTC) has disclosed a new risk, in the Share Price & Shareholder Rights category.
EVERTEC INC faces potential risks with its stock repurchase plan, which although aimed at increasing stockholder value, may not necessarily achieve this goal. The approval to buy back up to $220 million of common stock in 2024 could influence the market price, possibly elevating it or cushioning a fall. However, these repurchases also reduce cash reserves, potentially limiting strategic opportunities and lowering returns on cash balances. While the plan is designed to boost long-term value, short-term market volatility may undermine its effectiveness.
Overall, Wall Street has a Moderate Buy consensus rating on EVTC stock based on 2 Buys and 2 Holds.
To learn more about EVERTEC INC’s risk factors, click here.