Eric Richard Remer, the Chief Executive Officer of EverCommerce Inc. (NASDAQ:EVCM), has recently sold shares of the company's common stock. According to a recent SEC filing, Remer sold a total of 11,837 shares over three consecutive days, with the transactions occurring on October 22, 23, and 24, 2024. The shares were sold at prices ranging from $10.3681 to $10.5247, amounting to a total value of $123,732.
Following these transactions, Remer retains a significant stake in the company, with 8,064,640 shares held indirectly through Buckrail Partners, LLC. Additionally, he holds shares through various family trusts, including the EMJ Remer Family Trust and the Remer Family Trust.
These sales were conducted under a Rule 10b5-1 trading plan established in June 2024, allowing insiders to set up a predetermined schedule for selling stocks to avoid any accusations of insider trading.
In other recent news, EverCommerce has experienced several significant developments. The company reported a revenue of $177.4 million for Q2 2024, a 4.3% increase from the previous year. Excluding the sale of fitness assets, the pro forma revenue growth stood at 6%. Adjusted EBITDA reached $41.2 million, representing a 23.2% margin. Payments revenue, excluding fitness solutions, saw an 8% YoY increase, driven by an 8.4% growth in total payment volume.
EverCommerce also announced changes to its Board of Directors. Alexi Wellman, with her extensive background in financial management and corporate governance, has been elected as a Class II director. Concurrently, Debby Soo has resigned from the Board. EverCommerce is also expecting Q3 total revenue to be between $172 million and $176 million, with adjusted EBITDA projections set at $39 million to $42 million.
These recent developments reflect EverCommerce's ongoing focus on profitability and generating significant free cash flow. The company's growth strategy, board changes, and financial results are noteworthy for investors.
InvestingPro Insights
As Eric Richard Remer sells a portion of his EverCommerce Inc. (NASDAQ:EVCM) shares, investors might be curious about the company's financial health and future prospects. According to InvestingPro data, EverCommerce has a market capitalization of $1.93 billion and generated revenue of $691.69 million in the last twelve months as of Q2 2024, with a modest growth of 6.23% over the same period.
Despite the CEO's recent stock sales, there are some positive indicators for the company. An InvestingPro Tip suggests that net income is expected to grow this year, which could be a sign of improving financial performance. Additionally, analysts predict that the company will be profitable this year, potentially marking a turnaround from its current unprofitable status over the last twelve months.
However, investors should be aware that EverCommerce is trading at high EBIT and EBITDA valuation multiples, as noted by another InvestingPro Tip. This could indicate that the stock is relatively expensive compared to its earnings, which may be a consideration for value-oriented investors.
It's worth noting that 6 analysts have revised their earnings downwards for the upcoming period, which might explain some of the caution reflected in the CEO's stock sales. The company also does not pay a dividend to shareholders, which could be a factor for income-focused investors.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a fuller picture of EverCommerce's financial situation and prospects. In fact, there are 7 more InvestingPro Tips available for EVCM, which could offer valuable context for the recent insider selling activity and the company's overall market position.
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