Everquote executive sells shares worth over $12k By Investing.com

Jon Ayotte, the Chief Accounting Officer of EverQuote , Inc. (NASDAQ:), has recently sold a total of 564 shares of Class A Common Stock at a price of $22.62 per share, according to a new SEC filing. The transactions, which took place on August 16, 2024, resulted in a total sale value of $12,757.

The sales were made under prearranged 10b5-1 trading plans, which are set up to allow insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information. Specifically, these sales were conducted to cover tax withholding obligations related to the vesting of restricted stock units. Ayotte’s plans were adopted on November 23, 2021, and November 5, 2020, respectively, and are intended to comply with the affirmative defense conditions of Rule 10b5-1(c).

Following these transactions, Ayotte still holds 58,086 shares of EverQuote’s Class A Common Stock, indicating a continued investment in the company’s future. Investors often monitor insider sales as they may provide insights into an executive’s perspective on the company’s current valuation and future prospects.

EverQuote, based in Cambridge, Massachusetts, operates within the computer programming and data processing sector and is known for its online marketplace for insurance shopping. The company’s stock is publicly traded on the NASDAQ exchange under the ticker symbol EVER.

In other recent news, EverQuote has witnessed a series of upgrades from various analysts following robust financial performance. Both Craig-Hallum and B.Riley have increased their price target for EverQuote, with Craig-Hallum raising it to $33.00 and B.Riley to $36.50, maintaining a ‘Buy’ rating on the stock. Needham also raised its price target to $38, reflecting strong Q2 results. EverQuote’s second-quarter revenue surpassed its guidance by approximately 14%, and third-quarter revenue guidance was about 42% higher than the prior consensus estimate.

The company’s significant growth is attributed to the recovery in the auto insurance sector, with more carriers increasing their spending and more states reaching rate adequacy. EverQuote’s record numbers for adjusted EBITDA, net income, and free cash flow in the second quarter were also highlighted. Despite a more competitive market that could lead to higher media costs, EverQuote is expected to maintain strong performance in EBITDA and free cash flow.

Additionally, EverQuote is preparing for new FCC regulations that may impact its business model, while also planning to invest in technology and product expansion. These are among the recent developments that reflect EverQuote’s strong start to the year and its positive outlook for the upcoming quarters. The company’s record revenue, secured record EBITDA, and the projection of sustained growth indicate a promising future for EverQuote.

InvestingPro Insights

EverQuote, Inc. (NASDAQ:EVER) is navigating a dynamic market environment, and recent insider transactions have drawn attention to the company’s financial health and future outlook. In light of the Chief Accounting Officer’s stock sale, insights from InvestingPro provide a broader context for investors considering the company’s performance and potential.

InvestingPro Tips reveal that EverQuote holds more cash than debt, suggesting a strong balance sheet that could provide resilience in challenging market conditions. Additionally, analysts are optimistic about EverQuote’s future, expecting net income and sales growth in the current year. This positive sentiment is further reinforced by two analysts who have revised their earnings estimates upwards for the upcoming period. These tips underscore the potential for EverQuote’s financial recovery and growth, aligning with the company’s strategic objectives.

From a data perspective, EverQuote’s market capitalization stands at $779.22 million, with a Price / Book ratio of 7.68 as of the last twelve months leading into Q2 2024. The company’s gross profit margin impressively reaches 93.36%, reflecting strong operational efficiency. However, it’s worth noting that the company has experienced a revenue decline of 13.51% over the same period, presenting a potential area for improvement. Despite this, the company’s stock has seen a significant price uptick of 42.2% over the last six months, indicating investor confidence in its trajectory.

For those interested in a deeper dive into EverQuote’s financials and strategic positioning, InvestingPro offers additional tips, providing a comprehensive toolkit for informed investment decisions. Visit https://www.investing.com/pro/EVER to explore more about the company’s prospects and performance metrics.

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