Michael D. Rumbolz, Executive Chairman of Everi Holdings Inc. (NYSE:EVRI), recently sold a significant portion of his common stock holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Rumbolz sold a total of 50,000 shares on December 3, 2024, at a weighted average price of $13.47 per share. The transactions amounted to a total value of approximately $673,500. The sale comes as Everi's stock trades near its 52-week high, having surged approximately 79% over the past six months. The company, currently valued at $1.16 billion, maintains impressive gross profit margins of 80%.InvestingPro analysis reveals that Everi Holdings demonstrates GOOD overall financial health, with 13 additional key insights available to subscribers through the comprehensive Pro Research Report.
Following these transactions, Rumbolz now directly owns 1,032,062 shares of Everi Holdings. The shares sold were related to vested Restricted Stock Units originally granted in 2018 and 2020. The sale was executed in multiple transactions, with prices ranging from $13.45 to $13.48 per share.
In other recent news, Everi Holdings is undergoing major transitions. The company has announced a proposed merger with International Game Technology PLC (NYSE:IGT) and Apollo Global Management-affiliated entities. This transaction is expected to culminate in the formation of a new holding company, with Everi's CFO, Mark F. Labay, taking on the role of Chief Integration Officer at Newco. The merger is currently in progress, having cleared a significant regulatory hurdle under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Analysts have been closely monitoring these developments. B.Riley maintained a Neutral rating on Everi, adjusting its EBITDA estimates for 2024 and 2025 to $325.4 million and $346.9 million, respectively, due to potential delays in product transitions within Everi's games business. Meanwhile, Stifel downgraded Everi's stock rating from Buy to Hold following the merger announcement. Concurrently, Raymond (NS:RYMD) James adjusted Everi's stock rating from a 'Strong Buy' to a 'Market Perform' status.
These changes come against the backdrop of Everi's first-quarter results, which revealed a decrease in its Games segment but growth in its Fintech cash access services, with adjusted EBITDA falling to $80.3 million. These are the recent developments in Everi Holdings' ongoing business restructuring and market performance.
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