EverQuote , Inc. (NASDAQ:EVER) has reported that its General Counsel, Julia Brncic, sold 812 shares of the company's Class A Common Stock for a total value of $16,970. The transaction took place on July 2, 2024, with each share sold at a price of $20.90.
The sale was conducted under a Rule 10b5-1 trading plan, which Brncic had adopted on March 12, 2024. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing an affirmative defense against accusations of trading on nonpublic information.
In addition to the sale, the SEC filing disclosed that on July 1, 2024, Brncic disposed of 1,315 shares of Class A Common Stock at a price of $21.10 per share. However, this disposal, totaling $27,746, was not a market sale but rather shares withheld by EverQuote to satisfy tax withholding obligations related to the vesting of restricted stock units.
Following these transactions, Brncic still holds a significant stake in the company with 116,836 shares of Class A Common Stock remaining in her possession. EverQuote has not provided any further comments on the transactions at this time.
Investors and stakeholders typically monitor insider transactions as they may provide insights into the company's performance and the executives' confidence in the company's future. EverQuote, headquartered in Cambridge, Massachusetts, operates within the computer programming and data processing sector and continues to be a key player in online insurance marketplace technology.
In other recent news, EverQuote Inc. has been the focus of increased confidence from financial analysts. Craig-Hallum and Canaccord Genuity both raised their stock price targets for the company to $30, maintaining a Buy rating. These adjustments come on the back of EverQuote's impressive first-quarter performance, where it exceeded expectations on key financial metrics such as revenue, Variable Marketing Margin (VMM), and adjusted EBITDA.
EverQuote's strong start to the year is attributed to increased performance marketing investments by auto carriers. This trend is expected to continue, contributing to sustained growth and profit gains in upcoming quarters. The company's second-quarter outlook has also seen a significant upward revision, indicating a larger trend of growth.
Craig-Hallum analysts predict a long-term growth trajectory for EverQuote, with the development of an independent agent channel expected to contribute to more sustainable growth. On the other hand, Canaccord Genuity notes that despite possible slight dips in Auto revenue in the second half of the year, EverQuote is anticipated to maintain an adjusted EBITDA margin around pre-downturn levels of approximately 6%.
EverQuote's first-quarter results reported total revenues of $91.1 million, with auto insurance contributing 85%. The company also achieved its first positive GAAP net income since Q3 2019. Looking ahead, EverQuote's Q2 forecast anticipates revenues between $100 million and $105 million, and an adjusted EBITDA between $7 million and $9 million. These recent developments suggest a positive outlook for EverQuote's future growth and profitability.
InvestingPro Insights
EverQuote, Inc. (NASDAQ:EVER) has recently been under the spotlight due to insider transactions, but what does the broader financial picture look like for this online insurance marketplace technology provider? According to InvestingPro, EverQuote's financial health and market performance reveal a mix of strengths and challenges.
One of the most notable InvestingPro Tips for EverQuote is its impressive gross profit margin, which stands at a remarkable 91.95% for the last twelve months as of Q1 2024. This indicates that the company maintains a strong ability to retain a significant portion of its sales as gross profit. Additionally, analysts predict that EverQuote will become profitable this year, a milestone that could be a positive catalyst for the company's stock.
On the other hand, EverQuote is not currently profitable, with a reported Operating Income Margin of -8.99% for the same period. Moreover, the company's revenue has seen a decline, with a -33.01% change in the last twelve months as of Q1 2024. Despite this, EverQuote's market performance has been robust, with a 214.81% return over the last year.
In terms of valuation, EverQuote is trading at a high Price / Book multiple of 8.39, which may suggest the stock is priced optimistically relative to its book value. Investors considering EverQuote should weigh this alongside the company's potential for sales growth and anticipated profitability in the current year.
Looking at the InvestingPro Data, EverQuote's Market Cap stands at 749.03M USD, and while the P/E Ratio is negative at -15.52, reflecting its lack of profitability, the PEG Ratio is 0.15, which might indicate potential for future earnings growth relative to its earnings multiple.
For those interested in diving deeper into EverQuote's financials and performance metrics, there are additional InvestingPro Tips available. Currently, there are 9 more tips listed on InvestingPro that could provide further insights into EverQuote's financial state and market potential.
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