In a recent move, David Brainard, the Chief Technology Officer of EverQuote , Inc. (NASDAQ:EVER), sold a portion of his company stock, totaling $69,671. The sales occurred on August 21, 2024, and were executed under a prearranged trading plan.
The transactions were made at variable prices ranging from $21.63 to $22.28 per share, with the reported weighted average price being $22.02. The specific number of shares sold at each price point within this range has not been disclosed, but the total number of shares sold was 3,164. This sale was conducted in accordance with a Rule 10b5-1 trading plan, which Brainard had adopted on December 15, 2023.
In addition to the sale, the company withheld 4,231 shares of Brainard's Class A Common Stock to satisfy tax withholding obligations related to the vesting of restricted stock units on August 20, 2024. The total value of the shares withheld was $94,308, based on the closing price of EverQuote's Class A Common Stock on the date of vesting.
Following these transactions, Brainard's remaining direct ownership in EverQuote stands at 160,986 shares of Class A Common Stock. The company has not provided further details on the transactions.
Investors typically watch insider buying and selling as it can provide insights into the executive's view of the company's stock value and future performance. However, transactions under a Rule 10b5-1 trading plan are often scheduled in advance to avoid any potential conflicts with insider trading regulations.
EverQuote, based in Cambridge, Massachusetts, operates within the computer programming and data processing sector, providing an online marketplace for insurance shopping.
In other recent news, EverQuote has seen a series of positive developments. Analyst firms Craig-Hallum, B.Riley, and Needham have all raised their price targets for EverQuote, maintaining a Buy rating for the stock. This follows the company's Q2 results which exceeded expectations, with record revenue, net income, and free cash flow. Reports suggest this strong performance is largely due to a recovery in auto insurance spending.
EverQuote's Q2 revenue surpassed its guidance by approximately 14%, with Q3 revenue guidance being about 42% higher than the prior consensus estimate. The company's robust recovery in the auto insurance sector has led to significant operating leverage. Despite facing a competitive market, EverQuote is expected to maintain strong EBITDA and free cash flow performance.
EverQuote is also preparing for new FCC regulations that may impact its business model. Despite these potential challenges, the company's Q3 revenue is projected to be between $137 million and $143 million, with adjusted EBITDA between $14 million and $17 million. These are recent developments that reflect EverQuote's strong performance and positive outlook for the upcoming quarters.
InvestingPro Insights
As EverQuote's Chief Technology Officer, David Brainard, engages in planned stock sales, investors may seek additional context to understand the company’s financial health and stock performance. Here are some key InvestingPro Data metrics and InvestingPro Tips that shed light on EverQuote's current situation:
InvestingPro Data shows that EverQuote holds a market capitalization of $725.54 million, indicating its size within the marketplace. Despite a challenging period with a revenue decline of 13.51% over the last twelve months as of Q2 2024, the company has managed to maintain an impressive gross profit margin of 93.36%. This suggests that while sales might have dipped, the company is efficient in controlling the cost of goods sold relative to its revenue.
Moreover, the stock's performance has been volatile, with significant price total returns over various timeframes. Investors have seen a 261.03% return over the last year, yet the stock has experienced a decline of 17.82% over the last month. This could reflect market sentiment and broader economic factors impacting stock performance.
Turning to InvestingPro Tips, it's noteworthy that EverQuote holds more cash than debt on its balance sheet, which can be a sign of financial stability. Additionally, analysts have revised their earnings upwards for the upcoming period, which may indicate optimism regarding the company's future profitability. Specifically, 2 analysts have made these positive revisions, suggesting consensus in their outlook.
For those interested in deeper analysis and more tips, InvestingPro offers additional insights. In fact, there are 13 more InvestingPro Tips available for EverQuote at https://www.investing.com/pro/EVER, which can provide further guidance for investors considering this stock.
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