David B. Blundin, a director and a ten percent owner of EverQuote , Inc. (NASDAQ:EVER), recently sold a significant number of shares in the company, according to the latest SEC filings. The transactions, which took place on May 2nd and 3rd, 2024, amounted to a total value of over $3.1 million.
The sales were executed under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was adopted by Blundin on September 5, 2023. This plan allows company insiders to sell shares over a predetermined period of time, to avoid concerns about transactions being made on the basis of non-public information.
On May 2nd, Blundin sold shares in multiple transactions at prices ranging from $21.70 to $22.26, which resulted in a weighted average price of $21.88 per share. The total value of shares sold on this day was calculated based on the weighted average price. Similarly, on May 3rd, shares were sold at a weighted average price of $21.90, with individual transactions again ranging from $21.70 to $22.10 per share.
The SEC filing details the specific amounts of shares sold and the post-transaction holdings. For instance, on the first day, transactions included the sale of 23,362 shares with a post-transaction holding of 511,696 shares, and another sale of 26,304 shares with subsequent holdings of 576,105 shares. On the following day, Blundin sold 41,789 shares and 47,050 shares in two separate transactions, with post-sale holdings of 469,907 and 529,055 shares, respectively.
The filings also reveal that some of the shares were held indirectly through entities such as Recognition Capital, LLC and Link Ventures, LLLP, with Blundin being associated with the management of these entities. However, Blundin has disclaimed beneficial ownership of these securities, except to the extent of his pecuniary interest.
Investors and followers of EverQuote, Inc. often monitor such transactions as they can provide insights into the perspectives of company insiders regarding the stock's value and future performance. However, it is important to note that insider selling does not always indicate a lack of confidence in the company, especially when done as part of a pre-arranged trading plan.
InvestingPro Insights
As market participants evaluate the implications of David B. Blundin's recent sale of EverQuote, Inc. shares, a closer look at the company's financial health and performance metrics can provide additional context. According to real-time data from InvestingPro, EverQuote's market capitalization stands at a moderate $741.73 million, reflecting a relatively small-cap company in the current market landscape.
One notable aspect of EverQuote's financial profile is its impressive gross profit margin, which has reached a staggering 92.2% over the last twelve months as of Q4 2023. This figure suggests that the company is highly efficient in generating profit from its revenues, a positive signal for potential investors. Additionally, EverQuote has experienced significant price returns, with a 230.05% increase over the past year and a 192.34% surge over the last six months, indicating a strong bullish trend in its stock price.
Despite not being profitable over the last twelve months, with a negative P/E ratio of -24.18, InvestingPro Tips indicate that analysts predict the company will become profitable this year. This projection, coupled with the fact that EverQuote holds more cash than debt on its balance sheet and has liquid assets that exceed short-term obligations, paints a picture of a company that is potentially on a path to financial stability and growth.
For readers looking to delve deeper into EverQuote's potential and explore additional insights, InvestingPro offers a comprehensive suite of tools and analyses. There are currently 13 additional InvestingPro Tips available for EverQuote, which can be accessed by visiting: https://www.investing.com/pro/EVER. For a more informed investment decision, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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