What Happened?
Shares of online insurance comparison site EverQuote (NASDAQ: EVER) jumped 4.8% in the afternoon session after analysts at Needham & Company reiterated a "buy" rating on the stock following the company's second-quarter earnings report. The investment firm gave the stock a $38.00 price target. This vote of confidence came after EverQuote reported strong second-quarter results that included record net income. The company also surpassed earnings per share estimates. In a further sign of strength, the board of directors authorized a $50 million share repurchase program.
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What Is The Market Telling Us
EverQuote’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 7.3% on the news that the company issued disappointing third-quarter guidance that signaled a significant growth slowdown, overshadowing an otherwise strong quarterly report. The online insurance marketplace reported a 34% year-over-year revenue jump and record net income for its second quarter. EverQuote also announced a new $50 million share repurchase program. However, investors looked past these positives and focused on the future. The company projected third-quarter revenue that represented only 15% year-over-year growth at the midpoint, a sharp deceleration. This outlook was compounded by second-quarter revenue that slightly missed analyst expectations, which ended a six-quarter streak of revenue beats. Following the report, JPMorgan trimmed its price target on the shares.
EverQuote is up 23.7% since the beginning of the year, but at $25.06 per share, it is still trading 15.7% below its 52-week high of $29.71 from March 2025. Investors who bought $1,000 worth of EverQuote’s shares 5 years ago would now be looking at an investment worth $624.66.
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