Please ensure Javascript is enabled for purposes of website accessibility

Why Everi Holdings' Shares Popped 44.6% Tuesday Before Fizzling Out

By Travis Hoium - Mar 17, 2020 at 3:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Insiders are buying, and this morning, so were traders.

What happened 

Shares of gambling-industry supplier Everi Holdings Inc (EVRI 1.14%) jumped as much as 44.6% in early trading Tuesday after it was revealed that a number of insiders had bought stock. The pop didn't last long, though, and shares were back down to a 12% gain on the day at 3 p.m. EDT. 

So what

A number of insiders have acquired shares in the last week, but the two notable moves in today's SEC filings were directors Eileen Raney buying 20,000 shares and Maureen Mullarkey buying 10,000 shares. Their average purchase price was $6.00 and $6.27, respectively, more than double where shares are trading today. 

Slot machines on a casino floor.

Image source: Getty Images.

The market is moving quickly, but if directors were bullish on Everi's stock at over $6 per share then buying them below $3, where they're trading today, could be seen as a steal. And that's why shares jumped today. 

Now what

The real challenge for Everi is that most of its customers are shutting down operations and don't know when they'll reopen. Casinos could be in cost-saving mode when they do open, so suppliers like this could get pinched.

I wouldn't buy on an insider acquisition alone, but if Everi is going to come out of the current crisis, it could be a good casino stock, given that shares were trading five times higher just a month ago. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Everi Holdings Inc. Stock Quote
Everi Holdings Inc.
EVRI
$16.88 (1.14%) $0.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.