EverQuote , Inc. (NASDAQ:EVER) Chief Financial Officer Joseph Sanborn has recently completed a series of stock transactions, according to the company's latest SEC filings. On July 2, 2024, Sanborn sold a total of 644 shares of Class A Common Stock at prices ranging from $20.90 to $21.02, resulting in a total sale value of approximately $13,459.
The transactions were carried out under a pre-arranged 10b5-1 trading plan, which allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own. These plans are used to avoid accusations of insider trading by allowing insiders to sell a predetermined number of shares at a predetermined time.
According to the footnotes in the SEC filing, the sales were made to satisfy tax withholding obligations related to the vesting of restricted stock units. It's worth noting that the sales do not represent discretionary trades by the reporting person.
Prior to these sales, on July 1, 2024, shares of Class A Common Stock were withheld by EverQuote to satisfy tax withholding obligations upon the vesting of restricted stock units granted to Sanborn. The withheld shares amounted to 1,552 shares at a price of $21.10 per share, totaling $32,747.
Following the sales, Sanborn's ownership in EverQuote stands at 216,411 shares of Class A Common Stock. Investors often monitor insider transactions as they can provide insights into the company's performance and insider sentiment. However, it's important to consider that selling shares to satisfy tax obligations is a common practice and not necessarily indicative of the insider’s belief in the company's future prospects.
EverQuote, based in Cambridge, Massachusetts, operates in the technology sector, providing an online marketplace for insurance shopping. The company's stock is traded on the NASDAQ under the ticker symbol EVER.
In other recent news, EverQuote Inc. has been a focal point of financial analysts due to its strong performance. Craig-Hallum and Canaccord Genuity have both raised their stock price targets for the company, reflecting confidence in EverQuote's growth prospects and recent earnings that surpassed expectations. Craig-Hallum's analyst emphasized the company's potential for sustained growth and profit gains, while Canaccord Genuity highlighted the company's strong first quarter results, including revenues, Variable Marketing Margin (VMM), and adjusted EBITDA, which all exceeded their estimates.
EverQuote's first quarter performance also surpassed its own financial guidance, announcing record net income, adjusted EBITDA, and operating cash flow. The company attributes this success to an improvement in auto insurance carrier underwriting profitability, leading to increased carrier activity and growth in both auto and home insurance revenues. EverQuote's second quarter forecast anticipates revenues between $100 million and $105 million and an adjusted EBITDA between $7 million and $9 million.
These recent developments underscore the company's robust financial health and positive outlook, with both Craig-Hallum and Canaccord Genuity maintaining a Buy rating on the stock. It is noteworthy that these analyses suggest a long-term growth trajectory for EverQuote, with potential for the company's story to evolve over the next several quarters as it capitalizes on these trends.
InvestingPro Insights
As investors digest the recent insider transactions at EverQuote, Inc. (NASDAQ:EVER), it's beneficial to consider the company's financial health and market performance. With a market capitalization of 749.03 million USD, EverQuote's position in the technology sector is notable, especially considering the company's impressive gross profit margin of 91.95% over the last twelve months as of Q1 2024. This high margin indicates strong efficiency in the company's operations and its ability to retain a significant portion of its revenue as profit.
An InvestingPro Tip that stands out for EverQuote is the analysts' anticipation of sales growth in the current year. This optimism is bolstered by the fact that EverQuote holds more cash than debt on its balance sheet, providing a strong liquidity position. Additionally, analysts predict the company will be profitable this year, which is a key factor for potential investors to consider, given the prior year's lack of profitability.
With a substantial price increase of 84.93% over the last six months, and a year-to-date price total return of 75.41%, the stock has shown considerable growth. This performance is further highlighted by the one-year price total return of 214.81%, underlining the positive momentum the stock has experienced.
For those looking to delve deeper into EverQuote's potential, InvestingPro offers a wealth of additional tips. Currently, there are 9 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/EVER. These tips provide a more comprehensive understanding of the company's financial metrics and market prospects.
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