In a recent transaction, Marc Christopher Thompson, the Chief Financial Officer of EverCommerce Inc. (NASDAQ:EVCM), sold shares in the company. The sale, which took place on June 7, 2024, involved a total of 4,384 shares of common stock at an average price of $9.52 per share, resulting in a total value of $41,735.
The transaction was executed as part of a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to set up a trading schedule in advance to sell stocks at a predetermined time. This plan was put in place by Thompson on March 29, 2023, to facilitate the sale of shares to cover taxes associated with the vesting of restricted stock units (RSUs).
According to the filing, the shares sold by Thompson were part of a block trade carried out through multiple transactions. The average price of $9.52 reflects a weighted average calculated by the broker handling the sell-to-cover transactions. Post-sale, Thompson still retains a substantial holding in EverCommerce Inc., with 1,191,859 shares of common stock in his possession.
Additionally, the filing revealed that Thompson has an indirect ownership of 70,000 shares of EverCommerce Inc. common stock through a family trust.
Investors and interested parties can request detailed information about the individual transactions, including the number of shares sold at each separate price, from Thompson, EverCommerce Inc., or the Securities and Exchange Commission if needed.
The sale by Thompson comes as part of the regular financial planning and is a routine practice for many executives to manage their stock-based compensation and associated tax obligations. EverCommerce Inc. specializes in providing software services and continues to maintain its operations out of Denver, Colorado.
In other recent news, EverCommerce has reported a notable first quarter in 2024 with a 6% increase in revenue year-over-year and a substantial 28% growth in adjusted EBITDA. The company also announced an expansion of its share repurchase program, with an additional $50 million allocation, raising the total authorization to $200 million through December 31, 2025. Goldman Sachs has adjusted its outlook on EverCommerce, raising the price target to $8.00 while maintaining a Sell rating.
Analysts have observed EverCommerce's strategic initiatives, including the divestiture of its fitness assets, seen as a move to focus on higher-growth areas such as payments and EverHealth products. The company's management is actively involved in optimization and transformation initiatives, which are expected to fully materialize by the fiscal year 2026. EverCommerce's solid Q1 performance and strategic initiatives have been acknowledged by analysts, despite concerns about execution risks associated with the company's transformation initiatives.
EverCommerce has been recognized for its shareholder-friendly actions, including a repurchase authorization of approximately $28M remaining. The company's efficient management and mid-20s EBITDA margins are expected to benefit from operational optimization in the coming years. The consensus among analysts is that EverCommerce is a company with strong fundamentals and strategic initiatives that could lead to robust growth.
InvestingPro Insights
Amidst the backdrop of EverCommerce Inc.'s (NASDAQ:EVCM) CFO Marc Christopher Thompson's recent stock sale, there are several financial metrics and expert analyses from InvestingPro that offer a deeper understanding of the company's current valuation and performance. The market capitalization of EverCommerce stands at $1.78 billion, with a notable revenue growth in the last twelve months as of Q1 2024 at 7.21%. This growth is a testament to the company's ability to increase its sales over time.
Despite not having paid dividends and being unprofitable over the last twelve months, analysts predict a change in fortune for EverCommerce. An InvestingPro Tip points to expectations of net income growth this year, which could signal a turnaround for the company's profitability. Moreover, the company's liquid assets surpassing short-term obligations suggests a solid financial position to meet immediate liabilities.
InvestingPro also highlights that the company is trading at a high EBIT valuation multiple, indicating that investors may be expecting future growth or that the stock is overvalued compared to its earnings before interest and taxes. Additionally, with a price to book ratio of 2.22 as of the last twelve months ending Q1 2024, investors are valuing the company at slightly more than twice its book value.
For those interested in a more comprehensive analysis, InvestingPro offers a range of additional tips on EverCommerce. By using the promo code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable insights that could further inform investment decisions. Currently, there are six additional InvestingPro Tips available for EverCommerce at https://www.investing.com/pro/EVCM, which delve into earnings revisions, profitability forecasts, and valuation multiples.
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