VYX

NCR Voyix ($VYX) President Buys $248K in Shares After Stock Plunge - A Signal of Recovery?

05/19/2025 20:50

NCR Voyix ($VYX) President James Kelly made a substantial stock purchase last Friday (May 16), according to a Form 4 filing with the SEC. Kelly acquired 22,603 shares at an average price of $10.99, representing a total investment of approximately $248,407. This purchase comes at a notable time, just as the company's stock has begun to rebound following a sharp decline from early April through early May. This marks Kelly's second significant stock purchase within a year, following his acquisition of 14,800 shares in August 2024. His latest buy occurred after the stock had fallen approximately 28% from its December high of $15.21. Kelly's purchase continues a pattern of insider buying that began in August last year when several executives, including CEO David Wilkinson and multiple EVPs (Brian Webb-Walsh, Eric Schoch, and Beimnet Tadele), made substantial stock purchases following a price dip. This consistent buying behavior among the leadership team could signal internal confidence in the company's long-term prospects. The timing of Kelly's purchase is particularly interesting as it follows closely after NCR Voyix's Q1 2025 earnings release on May 8. The company reported adjusted earnings per share of $0.09, surpassing analyst expectations but falling short of the $0.13 reported in the same quarter last year. Revenue declined by 28.4% to $617 million, though this slightly exceeded market forecasts. NCR Voyix, formerly known as NCR Corporation until October 2023, provides digital commerce solutions for the retail and restaurant sectors. The company offers a comprehensive suite of services including API-based point-of-sale software platforms, hardware terminals, self-service kiosks, and payment processing solutions. However, NCR Voyix has struggled in recent quarters. The company's financial data shows a trailing twelve-month revenue of $2.73 billion but a net loss of $167 million, with earnings per share at -$1.15. Additionally, the company carries a significant debt burden of approximately $2.4 billion. In response to these financial challenges, NCR Voyix was reported to be exploring the sale of its digital banking unit in July 2024. This unit, valued at approximately $3 billion, accounts for about 20% of the company's revenue. Goldman Sachs is reportedly leading this sale process, attracting interest from private equity firms and payment processors including TPG and Warburg Pincus. This potential divestiture appears to be a strategic move to reduce debt. Looking at the stock's performance, NCR Voyix shares climbed above $15 in mid-December 2024 before beginning a steady decline in 2025. The stock experienced a particularly sharp drop in early April, falling to as low as $7.81 on April 8. However, since May 9, the stock has begun to recover, regaining the $10 level, coinciding with Kelly's stock purchase. Analysts maintain a 'buy' rating on NCR Voyix, with a median 12-month price target of $15.50, significantly higher than the current share price. However, it's worth noting that there have been recent downgrades to earnings estimates. The company's high profit margin of 35.90% suggests potential for efficiency improvements, though the negative return on equity of -22.14% remains a concern. If debt reduction and business restructuring efforts prove successful, the company's financial position could improve. Kelly's stock purchase serves as a strong signal that the leadership team believes the current price represents an investment opportunity. However, investors should carefully consider multiple factors, including the company's debt burden, ongoing net losses, and the progress of the digital banking unit sale, when evaluating NCR Voyix as an investment opportunity.

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