David B. Blundin, a director and ten percent owner of EverQuote , Inc. (NASDAQ:EVER), has sold a significant portion of his holdings in the company, totaling over $4 million. The transactions, which took place on August 6 and 7, 2024, were executed through a pre-arranged trading plan.
The sales were conducted at varying prices, with a range between $27.03 and $27.89 per share. The total value of the shares sold amounted to approximately $4,002,430. These transactions were made public in a recent filing, which detailed the sale of Class A Common Stock by Mr. Blundin.
EverQuote, Inc., based in Cambridge, Massachusetts, operates within the tech sector, specializing in services related to computer programming, data processing, and other related fields. The company's stock, traded under the ticker EVER, has seen various transactions from its key executives and owners, which are closely watched by investors.
It is important to note that the sales by Mr. Blundin were carried out under a Rule 10b5-1 trading plan, which he had adopted on September 5, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a defense against potential claims of insider trading.
Following the sales, Mr. Blundin's direct ownership in EverQuote stands at 192,127 shares, according to the filing. Additionally, he has indirect ownership through entities such as Recognition Capital, LLC, and Link Ventures, LLLP, with disclaimers of beneficial ownership in some cases, as noted in the footnotes of the filing.
Investors and followers of EverQuote, Inc. will continue to monitor insider transactions as they can provide insights into the executives' perspectives on the company's value and future prospects.
In other recent news, EverQuote has seen significant growth and financial improvements. Analysts from Craig-Hallum and B.Riley have both increased their price targets for EverQuote, maintaining a Buy rating. The adjustments were influenced by a recovery in auto insurance spending and EverQuote's strong second-quarter performance, which exceeded expectations by approximately 14%. The third-quarter revenue guidance was also reported to be about 42% higher than the prior consensus estimate.
The company's robust second-quarter performance resulted in record numbers for adjusted EBITDA, net income, and free cash flow. EverQuote's streamlined cost structure contributed to an 11% adjusted EBITDA margin in the second quarter, surpassing B.Riley's expectation. The company's management anticipates a multi-year recovery phase in the Auto segment, with an adjusted EBITDA margin expected to maintain around or above pre-downturn levels of approximately 6%.
Analysts from B.Riley and Craig-Hallum have expressed confidence in EverQuote's recovery and its potential for growth. The development of an independent agent channel and investments in the platform are expected to contribute to this upward trajectory. These are recent developments that reflect EverQuote's strong start to the year and its positive outlook for the upcoming quarters.
InvestingPro Insights
Amid the news of David B. Blundin's recent sale of EverQuote shares, investors might be seeking additional context to assess the company's financial health and future outlook. According to recent data from InvestingPro, EverQuote's market capitalization stands at $813.25 million. Despite a challenging period, with a reported revenue decline of 13.51% over the last twelve months as of Q2 2024, the company has shown a significant quarterly revenue growth of 72.3% in Q2 2024. This indicates a potential rebound in sales, which aligns with analysts' expectations of sales growth in the current year, an InvestingPro Tip that may be particularly relevant to investors.
Furthermore, EverQuote boasts a gross profit margin of 93.36% over the same period, which is a testament to its impressive ability to manage costs relative to its revenues. This high margin is a critical InvestingPro Tip, as it suggests that the company has a strong underlying business model with the potential for profitability, a factor that analysts predict will materialize this year.
Investors may also note that EverQuote's stock has experienced a large price uptick over the last six months, with a 65.76% return, and an even more impressive year-to-date return of 98.53% as of the given date. However, it's important to consider that the company is trading at a high Price / Book multiple of 7.88, which could indicate that the stock is priced optimistically relative to its book value.
For those looking to delve deeper into EverQuote's financials and future prospects, there are additional InvestingPro Tips available on the platform, providing a more comprehensive analysis. For instance, EverQuote holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations, which are important considerations for assessing the company's financial stability. To explore these insights further, investors can visit InvestingPro's dedicated EverQuote page, which offers a total of 11 tips for a detailed investment evaluation.
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