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NCR (NYSE:VYX) Atleos Corp (NYSE:NATL), a company specializing in accounting machinery, announced today the adoption of new compensation agreements for its executive leadership team. This move, decided by the Compensation & Human Resource Committee of the company’s Board of Directors, introduces performance-based and time-based restricted stock unit award agreements under NCR Atleos ’s 2023 Stock Incentive Plan.
The performance-based restricted stock unit (PRSU) award agreement is designed to grant equity awards that will vest based on the achievement of specific performance metrics. With the company’s gross profit margin at 23% and revenue of $4.3 billion in the last twelve months, the primary criterion for the PRSU awards is the total stockholder return relative to a peer group over a three-year period, contingent upon the executive’s continued service. Additionally, the agreement provides for accelerated vesting of the performance-based RSUs in the event of a change in control or a qualifying termination.
Similarly, the time-based restricted stock unit (Time-based) award agreement will allow for annual vesting of RSUs in one-third increments over three years, also subject to the executive’s ongoing employment. This agreement, too, includes provisions for accelerated vesting under certain conditions following a change in control or a qualifying termination.
The implementation of these agreements on Thursday reflects NCR Atleos Corp’s strategic approach to align executive compensation with long-term shareholder value creation and executive retention. With analyst price targets ranging from $33 to $60 per share, suggesting potential upside, and the company’s stock trading near undervalued levels according to InvestingPro’s Fair Value analysis, the specifics of these agreements are detailed in Exhibits 10.1 and 10.2 of the Form 8-K filed with the SEC. InvestingPro subscribers have access to 6 additional key insights about NATL’s financial health and growth prospects.
The new compensation structures are part of the company’s broader initiative to maintain competitive compensation practices and incentivize their executive team in line with the company’s performance goals. The information about these new compensatory arrangements is based on a press release statement filed with the SEC.
In other recent news, NCR Atleos Corp. has received a Buy rating from Compass Point, accompanied by a price target of $57.00. The financial firm bases this decision on a forecast of NCR Atleos’ free cash flow reaching $418 million by the end of fiscal year 2026, with a market capitalization/free cash flow multiple of 10.0x. This outlook suggests a notable 74% upside from the current stock price. Compass Point highlights NCR Atleos’ strong market position, particularly in the ATM sector, and its potential benefits from growing demand for managed services and ATM as a Service products. The firm’s analysis indicates that NCR Atleos’ average revenue per unit is expected to rise in the self-service banking segment. Analysts also mention that Wall Street may be underestimating NCR Atleos’ strategic direction, potentially undervaluing its future free cash flow. An improvement in the company’s return on invested capital is projected, which could enhance profitability. Additionally, NCR Atleos is shifting towards a more capital-light business model, reducing reliance on hardware sales, which aligns with industry trends and supports its growth in cash withdrawals.
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