The EverQuote (NASDAQ:EVER) Share Price Is Down 30% So Some Shareholders Are Getting Worried
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
It is doubtless a positive to see that the EverQuote, Inc. (NASDAQ:EVER) share price has gained some 70% in the last three months. But that doesn't change the reality of under-performance over the last twelve months. In fact, the price has declined 30% in a year, falling short of the returns you could get by investing in an index fund.
See our latest analysis for EverQuote
Given that EverQuote didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year EverQuote saw its revenue grow by 29%. That's definitely a respectable growth rate. Meanwhile, the share price is down 30% over twelve months, which is disappointing given the progress made. This implies the market was expecting better growth. But if revenue keeps growing, then at a certain point the share price would likely follow.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on EverQuote
A Different Perspective
Given that the market gained 6.9% in the last year, EverQuote shareholders might be miffed that they lost 30%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. It's great to see a nice little 70% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of EverQuote by clicking this link.
EverQuote is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
