Everi Holdings controls subsidiary companies that design, develop, and manufacture casino games. The stock experienced a downfall recently, along with the other futures due to the coronavirus outbreak. Casinos stopped functioning as authorities enforced social distancing restrictions and forced shutdowns.
It seems Everi is in a different position than lots of other stocks. Its EPS was a bit disappointing in the last report, but earnings still increased significantly over the previous year. Furthermore,
the revenue was strong. It grew by 21% year-over-year, coming in at $145.18 million and beating the analysts forecast by 9%.
That’s why experts think that the stock’s drawback is temporary. The company has enough money to weather the current market storms due to its growing revenues. When the pandemic ends, there will probably be a strong demand for casinos, and Everi Holdings will recover all the losses and get some more gains.
It seems the company’s officers think so also. They have been buying its shares recently. Two purchases, which occurred last week, were more notable: Eileen Raney and Maureen Mullarkey, the board of Directors members, bought 20,000 and 10,000 shares, respectively, for $120,000 and $60,000. Raney’s purchase was the biggest single insider buy in the Everi’s history.
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How much could the stock gain in the coming year?
Everi is a penny stock, meaning that its shares are priced low, at just $1.65. The company’s average price target at $15 suggests room for an impressive 750% upside potential. However, investors could gain even more if they are willing to pay a higher price per share.
George Sutton, Craig-Hallum’s analyst, set his price target at $16 for the stock. If the target is met, investors would see an 809% upside. Barry Jonas, of SunTrust Robinson, also supports $16 price per share.
Sutton stated that the 35% pullback during the past few weeks is very opportunistic for investors, as the company has solid premium games growth. Wall Street analysts agree that Everi Holdings is definitely a strong buy.