Should You Buy VeriFone Stock Like The Insiders Are Doing?
Shares of VeriFone Systems Inc. (NYSE:PAY) took a spill on Friday after the credit card terminal maker reported a disappointing third-quarter sales report, which came in lower than analysts' estimates.
However, it appears this could be a good buy opportunity, with a low share price and millions of dollars' worth of insider buys reported to the SEC by company officials in recent months.
According to Bloomberg, revenue climbed 54 percent compared with a year earlier, rising to $489.1 million, lower than the $489.1 million estimate held by analyst. The company said the decline came after a fire crippled the company's Brazilian staging and repair facility.
"The revenue was a little low in the quarter, and guidance for the next quarter and the next year was lower," said Gil Luria, an analyst at Wedbush Securities Inc., told the media outlet in an interview.
Total income rose 43 percent to $37.7 million, or 34 cents per share, compared with $26.3 million in the same period last year.
In the last three months, company insiders have purchased a total of $5.04 million in shares.
Do you think now is a good time to make like the insiders and buy?
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