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EVRI, also known as Global Cash Access Holdings Inc (NYSE:EVRI), has reached a new 52-week high, with its stock price soaring to $13.4. This peak reflects a significant uptrend for the company, which has seen a commendable 1-year change with an increase of 12.35%. The surge to the 52-week high underscores the market's growing confidence in EVRI's performance and future prospects. Investors are closely monitoring the stock as it navigates through the dynamic financial landscape, capitalizing on the positive momentum that has been building over the past year.
In other recent news, Everi Holdings has been in the spotlight due to significant changes. Everi's first-quarter results indicated a decrease in its Games segment but an increase in its Fintech cash access services, with adjusted EBITDA falling to $80.3 million from $92.5 million in the same quarter of the previous year. B.Riley maintained a Neutral rating on Everi's stock, adjusting its EBITDA estimates for 2024 and 2025 to $325.4 million and $346.9 million, respectively, reflecting a cautious stance on product transition timelines within Everi's games business.
Everi's impending merger with the games division of International Game Technology (NYSE:IGT) has been identified as a contributing factor to potential customer delays in purchasing platforms. Despite lowered EBITDA expectations, B.Riley anticipates a turning point for Everi in the fourth quarter of 2024, with positive year-over-year EBITDA growth expected, partly fueled by the company's entry into the Video Lottery Terminal (VLT) market.
Everi's stock rating has also been adjusted by other firms. Stifel downgraded the company's rating from Buy to Hold following the announcement of its acquisition by Apollo Global Management (NYSE:APO), which is expected to provide a timely return for most shareholders. Raymond (NS:RYMD) James also revised the company's stock rating from a 'Strong Buy' to a 'Market Perform' status. These recent developments underscore the evolving landscape for Everi Holdings.
InvestingPro Insights
EVRI's recent achievement of a new 52-week high is further supported by InvestingPro data, which shows the stock is trading at 99.63% of its 52-week high. This aligns with the article's focus on the company's upward trajectory. The stock's impressive 6-month price total return of 64.21% demonstrates strong momentum, reinforcing the positive 1-year change mentioned in the article.
InvestingPro Tips highlight EVRI's impressive gross profit margins, which is reflected in the data showing a gross profit margin of 80.39% for the last twelve months as of Q2 2024. This strong profitability metric could be a key driver behind investor confidence and the stock's recent performance.
Additionally, analysts predict the company will remain profitable this year, which may contribute to the market's positive outlook on EVRI. For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into EVRI's financial health and market position.
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