EverQuote , Inc. (NASDAQ:EVER), a leading online insurance marketplace, has reported a recent sale of shares by Chief Technology Officer David Brainard. According to the latest filings, Brainard sold 2,043 shares of Class A Common Stock at an average price of $20.96, netting a total of $42,821.
The transactions, which took place on July 2, 2024, were executed under a pre-arranged trading plan known as a Rule 10b5-1 plan, which Brainard had adopted on December 15, 2023. Such plans allow company insiders to sell shares over a predetermined period of time, in compliance with insider trading laws. The shares sold by Brainard were priced within a range from $20.87 to $21.08.
In addition to the sale, Brainard also disposed of 3,143 shares on July 1 due to tax withholding obligations related to the vesting of restricted stock units. These shares were withheld by EverQuote at a price of $21.10 per share, amounting to a total transaction value of $66,317. This disposal was not part of the open market transactions but a mandatory process to satisfy tax requirements.
Following these transactions, Brainard's ownership in the company has been adjusted to 169,956 shares of Class A Common Stock. The sale and withholding of shares were disclosed in accordance with SEC regulations, providing transparency to investors and the market.
Investors and followers of EverQuote, Inc. are often keen to track the buying and selling activities of company insiders as it can provide insights into their perspectives on the company's current valuation and future prospects.
In other recent news, online insurance marketplace EverQuote has seen a series of positive developments. The company's shares target was raised by both Craig-Hallum and Canaccord Genuity analysts, who cited strong Q1 results and growth prospects as reasons for the increase. EverQuote's performance in the first quarter of the year outpaced its own financial guidance, with record net income, adjusted EBITDA, and operating cash flow.
A key factor behind this growth was an improvement in auto insurance carrier underwriting profitability, leading to increased carrier activity and growth in both auto and home insurance revenues. The company's Q2 forecast anticipates revenues between $100 million and $105 million and an adjusted EBITDA between $7 million and $9 million.
Craig-Hallum analysts noted that EverQuote's momentum is expected to continue, with projections of sustained growth and profit gains in the upcoming quarters. Meanwhile, Canaccord Genuity analysts highlighted the company's financial health, including $11 million in cash generated during the quarter and positive net income. These recent developments underline EverQuote's potential for continued growth and profitability in the coming quarters.
InvestingPro Insights
Amid the recent insider selling activity at EverQuote, Inc. (NASDAQ:EVER), investors might be seeking deeper insights into the company's financial health and future outlook. According to PRONEWS24, EverQuote's market capitalization stands at a robust $749.03 million, indicating a significant presence in the online insurance marketplace sector.
One of the key strengths highlighted by InvestingPro Tips is EverQuote's impressive gross profit margin, which reached a remarkable 91.95% in the last twelve months as of Q1 2024. This figure not only reflects the company's ability to manage its cost of services effectively but also suggests a competitive advantage in its operational efficiency.
Despite not being profitable over the last twelve months, analysts are optimistic about EverQuote's potential, predicting that the company will turn a profit this year. This is a crucial point for investors to consider, as it may signal a pivotal moment in the company's growth trajectory. Moreover, EverQuote's liquid assets have surpassed short term obligations, providing the company with a solid financial cushion to navigate the market and invest in strategic initiatives.
For those interested in the company's stock performance, EverQuote has experienced a large price uptick over the last six months, with a six-month price total return of 84.93%. This robust performance is part of a broader trend that has seen the stock's one-year price total return skyrocket to an impressive 214.81%.
In terms of valuation, EverQuote is trading at a high Price / Book multiple of 8.39 as of the last twelve months up to Q1 2024. While this may suggest a premium valuation, it could also reflect the market's confidence in the company's assets and growth potential. Investors can find additional InvestingPro Tips to further evaluate the investment opportunity presented by EverQuote, Inc. by visiting https://www.investing.com/pro/EVER. There are 9 additional tips available, which could provide further clarity and guidance in making informed investment decisions. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription for more in-depth analysis and exclusive insights.
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