Porch Group (NASDAQ:PRCH) Upgraded to Strong-Buy at Texas Capital

Key Points

• Texas Capital upgraded Porch Group to “strong buy,” while the broader analyst consensus remains “moderate buy” with an average price target of $18.42.
• Porch Group reported quarterly EPS of $0.05, beating estimates by $0.08, and revenue of $131.81 million, above the $122.30 million consensus forecast.
• The stock opened at $16.47, near its 12-month high of $18.37; insiders have sold 133,135 shares worth approximately $2.18 million over the past 90 days.

Porch Group (NASDAQ:PRCH - Get Free Report) was upgraded by analysts at Texas Capital to a "strong-buy" rating in a note issued to investors on Tuesday, Zacks reports.

Other research analysts have also issued research reports about the company. Keefe, Bruyette & Woods upped their price target on Porch Group from $16.25 to $16.50 and gave the company a "market perform" rating in a research report on Thursday, July 30th. Weiss Ratings upgraded Porch Group from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Thursday, July 30th. Benchmark boosted their target price on Porch Group from $22.00 to $23.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Cantor Fitzgerald upped their target price on Porch Group from $13.00 to $18.00 and gave the company an "overweight" rating in a report on Thursday, July 30th. Finally, B. Riley Financial raised their price target on Porch Group from $19.00 to $21.00 and gave the stock a "buy" rating in a research note on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Porch Group presently has a consensus rating of "Moderate Buy" and an average price target of $18.42.

Porch Group Price Performance

Shares of Porch Group stock opened at $16.47 on Tuesday. The company's fifty day simple moving average is $15.87 and its two-hundred day simple moving average is $12.07. Porch Group has a 12-month low of $6.36 and a 12-month high of $18.37. The firm has a market cap of $2.17 billion, a PE ratio of -137.25 and a beta of 3.17. The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 20.53.

Porch Group (NASDAQ:PRCH - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.05 EPS for the quarter, beating the consensus estimate of ($0.03) by $0.08. The firm had revenue of $131.81 million during the quarter, compared to the consensus estimate of $122.30 million. Porch Group had a negative net margin of 2.67% and a negative return on equity of 68.47%. As a group, equities analysts expect that Porch Group will post -0.09 EPS for the current year.

Insider Activity

In related news, Director Amanda L. Reierson sold 33,135 shares of Porch Group stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $16.46, for a total transaction of $545,402.10. Following the completion of the transaction, the director directly owned 134,180 shares of the company's stock, valued at $2,208,602.80. This trade represents a 19.80% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Matthew Neagle sold 50,000 shares of the business's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $16.46, for a total transaction of $823,000.00. Following the sale, the chief operating officer directly owned 1,940,705 shares in the company, valued at $31,944,004.30. The trade was a 2.51% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 133,135 shares of company stock worth $2,176,902. Corporate insiders own 27.78% of the company's stock.

Hedge Funds Weigh In On Porch Group

Several large investors have recently made changes to their positions in the business. Granahan Investment Management LLC grew its stake in shares of Porch Group by 9.4% in the 1st quarter. Granahan Investment Management LLC now owns 12,674,987 shares of the company's stock worth $90,880,000 after buying an additional 1,084,559 shares during the last quarter. BlackRock Inc. purchased a new stake in shares of Porch Group in the second quarter worth $128,995,000. GC Wealth Management RIA LLC purchased a new stake in shares of Porch Group in the first quarter worth $29,230,000. Park West Asset Management LLC bought a new position in shares of Porch Group during the second quarter valued at $53,194,000. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Porch Group by 42.0% during the first quarter. Dimensional Fund Advisors LP now owns 1,540,082 shares of the company's stock valued at $11,040,000 after acquiring an additional 455,817 shares in the last quarter. 48.48% of the stock is currently owned by hedge funds and other institutional investors.

Porch Group Company Profile

Porch Group, Inc is a technology company that provides software and services for the residential real estate and home services industries. Its platform is designed to help home service businesses manage operations, attract customers, and support homeowners throughout the process of buying, moving into, maintaining, and improving a home.

The company's products and services have included software for home inspectors, moving companies, contractors, and other service providers. Porch has also operated businesses connected with homeowners insurance and related services, although its portfolio and operating structure have changed over time as the company has adjusted its strategy.

Founded in 2012, Porch Group is headquartered in Seattle, Washington, and primarily serves the U.S.

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