Link Ventures, LLLP, a significant shareholder in EverQuote , Inc. (NASDAQ:EVER), has recently sold a portion of its holdings in the company. According to the latest filings, the venture firm disposed of 5,384 shares of Class A Common Stock at an average price of $23.16 per share, totaling approximately $124,693.
The transaction, which took place on June 7, 2024, was executed at prices ranging from $23.00 to $23.35 per share. This range indicates a slight fluctuation in the market price during the period the shares were sold. Following the sale, Link Ventures still holds a substantial stake in EverQuote, with 1,519,511 shares remaining in its possession.
EverQuote, a tech company specializing in services related to computer programming, data processing, and other information-based solutions, has been part of Link Ventures' investment portfolio, with the latter being a ten percent owner. The reported securities are owned directly by Link Ventures, while Link Management, LLC, as the general partner, holds a 1% general partner interest in Link Ventures.
The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission. It's a routine disclosure for insiders and significant shareholders who are required to report their trading activities in the company's stock.
Investors and market watchers often monitor such transactions closely to gauge insider sentiment and potential shifts in company ownership. The sales and purchases of company stock by insiders can provide valuable insights into their perspective on the company's current valuation and its future prospects.
In other recent news, EverQuote has made headlines with impressive earnings and revenue results. The online insurance marketplace reported record net income, adjusted EBITDA, and operating cash flow in the first quarter of 2024. Total revenues amounted to $91.1 million, with auto insurance contributing 85%, and a variable marketing margin (VMM) of $30.8 million, up 50% from the previous quarter.
These recent developments have sparked a positive response from analysts. Both Craig-Hallum and Canaccord Genuity raised their stock price target for EverQuote to $30, maintaining a Buy rating. Craig-Hallum's analyst emphasized the company's strong start to the year and projected sustained growth and profit gains in upcoming quarters. Similarly, Canaccord Genuity noted EverQuote's robust first quarter, which surpassed expectations across key financial metrics.
EverQuote's management anticipates a multi-year recovery phase in the Auto segment and expects revenues between $100 million and $105 million in Q2, with an adjusted EBITDA between $7 million and $9 million. The company's focus on efficiency and strategic investments, particularly in data science and AI, sets the stage for future growth.
InvestingPro Insights
In light of Link Ventures' recent sale of EverQuote (NASDAQ:EVER) shares, investors seeking to understand the company's current financial state and future potential may find the following InvestingPro Insights particularly informative:
EverQuote's market capitalization stands at $743.47 million, reflecting the company's size and market value as of Q1 2024. The company's impressive gross profit margin, which InvestingPro data shows at 91.95% for the last twelve months as of Q1 2024, suggests strong efficiency in its operations and the ability to retain a significant portion of its revenue as gross profit.
Despite not being profitable in the last twelve months, analysts predict that EverQuote will become profitable this year. This optimism is likely factored into the company's high Price / Book multiple of 8.4, indicating that investors may expect future growth and profitability. Additionally, EverQuote's liquid assets exceeding its short-term obligations is a positive sign of the company's liquidity and ability to cover immediate liabilities, which is a reassuring factor for investors.
InvestingPro Tips highlight that EverQuote has experienced a strong return over the last three months, with a 28.22% price total return, and an even more striking 112.87% price uptick over the last six months. This performance, coupled with the fact that EverQuote holds more cash than debt on its balance sheet, provides a compelling narrative for both current shareholders and potential investors considering the company's stock.
For those interested in a deeper dive into EverQuote's financials and further expert analysis, there are additional InvestingPro Tips available. Utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the full range of insights that could guide investment decisions surrounding EverQuote.
As of the latest data, the fair value estimates for EverQuote stand at $30 according to analyst targets, while InvestingPro's own fair value assessment is slightly lower at $23.42. This discrepancy suggests that there may be differing opinions on the company's valuation, which could provide a basis for further research and consideration.
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