Evolent Health, Inc. (NYSE:EVH) CEO Blackley Seth has engaged in significant trading of company stock, according to a recent SEC filing. Seth sold shares totaling approximately $5.6 million at an average price of $30.00, with transactions ranging from $30.00 to $30.02. Additionally, the CEO acquired shares worth roughly $1.6 million through option exercises with prices between $6.87 and $10.27.
The transactions, which took place on August 22, 2024, were executed under a pre-arranged trading plan in accordance with Rule 10b5-1, set up earlier in the year on February 29, 2024. This rule allows company insiders to set up a trading plan for selling stocks they own in a way that avoids accusations of insider trading.
The filing detailed the acquisition of 100,000 shares at $6.87 per share and another set of transactions acquiring 35,162 and 52,742 shares at $10.27 per share. The total value of shares acquired through these transactions amounted to $1,589,774.
On the same day, Seth sold 187,904 shares of Evolent Health stock at $30.00 each, amounting to a total sale value of $5,637,120. The sale significantly reduced the CEO's direct holdings in the company, although the exact post-transaction share ownership was not disclosed in the filing.
Footnotes in the SEC filing indicate that the shares sold and acquired include restricted stock units under awards previously reported. Additionally, it was noted that since the last ownership report, Seth had transferred shares pursuant to a domestic relations order and no longer reports beneficial ownership of securities owned by his ex-spouse.
Investors and followers of Evolent Health will likely keep a close watch on the trading activities of its CEO for hints about the company's financial health and future prospects. Evolent Health, Inc., based in Arlington, Virginia, specializes in management services and has been publicly traded since its IPO.
In other recent news, Evolent Health is reportedly exploring sale options following unsolicited acquisition interest. This development coincides with significant consolidation within the healthcare industry. Several analysts have maintained positive ratings for the company. Truist Securities and Piper Sandler have maintained a Buy and Overweight rating respectively, while BTIG and RBC Capital Markets have upheld a Buy and Outperform rating respectively.
Recent developments also highlight Evolent Health's strong financial performance. The company reported significant revenue growth in its recent second-quarter earnings call, raising its full-year revenue guidance to between $2.56 billion and $2.6 billion. In addition, the company projects Q3 revenues between $615 million and $635 million, and an adjusted EBITDA between $60 million and $68 million.
In line with its growth strategy, Evolent Health has announced the strategic acquisition of Machinify Technology, a move expected to enhance operational efficiency and expand product offerings. Analysts, such as those from Truist Securities, suggest potential acquisition offers could reach around $35 per share for Evolent Health, possibly more if a joint partnership between a strategic buyer and a private equity firm materializes. These are the recent developments for Evolent Health.
InvestingPro Insights
Evolent Health, Inc. (NYSE:EVH) has demonstrated a notable performance in the market, with the CEO's recent trading activity drawing attention to the company's stock. According to InvestingPro data, Evolent Health has a current market capitalization of $3.65 billion, reflecting a substantial presence in its sector. Despite a negative P/E ratio of -34, indicating that the company has reported a loss per share over the last twelve months as of Q2 2024, the adjusted P/E ratio suggests a significant market expectation of future earnings, standing at 176.71.
The company has experienced impressive revenue growth of 44.25% over the last twelve months as of Q2 2024, signaling strong business expansion. This growth is supported by a solid gross profit margin of 18.57%, although the operating income margin is relatively modest at 1.75%. Investors may find these metrics particularly relevant when assessing the company's operational efficiency and profitability potential.
Turning to InvestingPro Tips, there are indications of mixed sentiment among analysts and market indicators. While net income is expected to grow this year, seven analysts have revised their earnings estimates downwards for the upcoming period, which could signal potential headwinds or a more conservative outlook for the company. Additionally, the stock has shown significant returns over the last week, month, and three months, with price total returns of 13.13%, 33.64%, and 35.82% respectively, highlighting recent positive momentum.
For readers interested in a deeper analysis of Evolent Health, there are additional InvestingPro Tips available. These tips could provide further insights into the company's valuation multiples, profitability forecasts, and stock price volatility. InvestingPro offers a total of 13 tips for Evolent Health, which can be accessed through the dedicated InvestingPro page for EVH at https://www.investing.com/pro/EVH.
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