Everi Holdings Terminates Stock Repurchase Program, Effective May 2, 2024 And Implements A Mandatory Sell-To-Cover Policy
Portfolio Pulse from Benzinga Newsdesk
Everi Holdings Inc. (EVRI) has terminated its stock repurchase program effective May 2, 2024, having repurchased $100 million of its common stock. The company also announced a mandatory sell-to-cover policy for tax withholdings on RSUs and PSUs, effective May 1, 2024, to retain cash for a potential Special Dividend related to its merger with International Game Technology PLC (IGT) and other entities. The Special Dividend will be based on various financial metrics and the company's cash position at the merger's closing.
May 06, 2024 | 8:55 pm
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NEUTRAL IMPACT
Everi Holdings terminates its stock repurchase program and introduces a sell-to-cover policy for RSUs and PSUs, aiming to allocate more cash towards a Special Dividend.
Terminating the stock repurchase program may have a neutral to slightly negative short-term impact on EVRI's stock price as it signals a shift in capital allocation priorities. However, the potential for a Special Dividend could offset negative sentiment by attracting dividend-seeking investors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
International Game Technology PLC (IGT) is involved in a merger with Everi Holdings, which may lead to a Special Dividend for Everi stockholders.
IGT's involvement in the merger with Everi Holdings is likely to have a positive short-term impact on its stock price, as the merger and the potential Special Dividend for Everi stockholders could be viewed positively by investors, reflecting well on IGT's strategic decisions.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70