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EverQuote , Inc. (NASDAQ:EVER) Chief Financial Officer Joseph Sanborn has recently engaged in transactions involving the company's stock, according to a new SEC filing. On August 21, 2024, Sanborn sold 4,800 shares of Class A Common Stock at weighted average prices ranging from $21.09 to $21.94, netting a total of $103,392.
The sales were conducted under a Rule 10b5-1 trading plan, which Sanborn had adopted on December 15, 2023. This plan allows company insiders to sell shares at predetermined times to avoid any accusations of trading on non-public information.
In addition to the sale, the filing revealed that on August 20, 2024, shares of Class A Common Stock were withheld by EverQuote to satisfy tax withholding obligations as part of a net issuance from the vesting of restricted stock units. The number of shares withheld was 3,173, valued at the closing price on that date, which amounted to a total of $70,726.
Following these transactions, the SEC filing indicated that Sanborn still owned 207,691 shares of EverQuote's Class A Common Stock. The company, based in Cambridge, Massachusetts, operates within the technology sector, providing services in computer programming, data processing, and other related areas.
Investors and market watchers often monitor insider transactions as they can provide insights into an executive's view of the company's stock value and financial health.
In other recent news, EverQuote has been making headlines with impressive financial results and promising growth prospects. The company's second-quarter revenue surpassed its guidance by about 14%, with the third-quarter revenue guidance being about 42% higher than the prior consensus estimate, according to B.Riley. This surge was driven by a robust recovery in the auto insurance sector, with more insurance carriers boosting their budgets.
Craig-Hallum and B.Riley analysts have increased EverQuote's share price target to $33.00 and $36.50 respectively, while maintaining a Buy rating. This adjustment comes as auto insurance carriers show a growing interest in market opportunities following two years of price hikes. EverQuote's strong performance also resulted in significant operating leverage, reporting record numbers for adjusted EBITDA, net income, and free cash flow in the second quarter.
Despite facing a more competitive market that could lead to higher media costs and pressure on the variable marketing margin (VMM), EverQuote is expected to maintain strong performance in EBITDA and free cash flow (FCF). The forecast is positive, with expectations of additional carriers expanding their budgets in the second half of 2024, more states achieving rate adequacy in the first half of 2025, and captive agents beginning to invest throughout 2025.
Needham also raised its stock price target on EverQuote shares to $38 from $30, maintaining a Buy rating. This adjustment follows EverQuote's second-quarter results, which surpassed expectations in terms of revenue and earnings. The online insurance marketplace's performance benefited from increased spending on customer acquisition as insurance premiums rose and competition for new customers intensified.
In the company's recent earnings call, EverQuote reported a robust financial performance for the second quarter of 2024, surpassing its own guidance with record revenue, variable marketing margin (VMM), adjusted EBITDA, net income, and operating cash flow. The company's growth was fueled by its auto and home insurance verticals. Despite the optimism, EverQuote is preparing for new FCC regulations that may impact its business model, while also planning to invest in technology and product expansion.
InvestingPro Insights
As EverQuote, Inc. (NASDAQ:EVER) navigates through its financial journey, recent transactions by Chief Financial Officer Joseph Sanborn have drawn investor attention. To further understand the implications of these insider activities, let's delve into some key data and insights from InvestingPro.
InvestingPro Data highlights a market capitalization of $725.54 million for EverQuote, with a notable gross profit margin of 93.36% in the last twelve months as of Q2 2024. This impressive figure suggests the company's ability to efficiently manage its cost of goods sold and maintain profitability on its services. Despite a decrease in revenue growth by 13.51% in the same period, the quarterly revenue growth saw a substantial rise of 72.3%, indicating potential seasonal strength or successful new initiatives.
One InvestingPro Tip points out that EverQuote holds more cash than debt on its balance sheet, which is a strong indicator of financial stability and potential resilience in challenging economic times. Additionally, the company is expected to become profitable this year, as per analyst predictions. This forward-looking optimism is supported by the fact that two analysts have recently revised their earnings estimates upwards for the upcoming period, an encouraging sign for potential investors.
While the stock has experienced volatility, with a significant hit over the last week and month, the one-year price total return as of 2024 stands at an impressive 261.03%, reflecting a substantial gain for long-term investors. Furthermore, with the stock trading at a high Price/Book multiple of 7.15, it suggests that the market may be pricing in growth expectations or unique company assets not fully captured on the balance sheet.
For those interested in further insights and metrics, InvestingPro offers additional tips on EverQuote, which can be found at InvestingPro's dedicated EVER page. With these insights in hand, investors can make more informed decisions regarding the company's stock and its future prospects.
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