EverCommerce (NASDAQ:EVCM) Shares Gap Down on Disappointing Earnings

Key Points

• EverCommerce shares fell sharply, opening at $10.69 versus a prior close of $11.85, after quarterly EPS of $0.05 missed the $0.15 consensus estimate. Revenue of $152.02 million was essentially in line with expectations and rose 2.7% year over year.
• Near-term growth expectations weakened: Third-quarter revenue guidance of $151.5 million to $154.5 million fell below the $156.8 million analyst consensus, while full-year guidance offered limited upside.
• Alex Goor will become CEO on August 6, with founder Eric Remer remaining on the board. Analysts maintain a consensus “Hold” rating and an $11.25 price target, while recent insider sales were conducted under pre-arranged Rule 10b5-1 plans.

Shares of EverCommerce Inc. (NASDAQ:EVCM - Get Free Report) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $11.85, but opened at $10.69. EverCommerce shares last traded at $10.13, with a volume of 29,709 shares trading hands.

The company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.15 by ($0.10). EverCommerce had a return on equity of 3.37% and a net margin of 5.47%.The business had revenue of $152.02 million for the quarter, compared to the consensus estimate of $152.29 million. During the same period in the previous year, the firm earned $0.04 earnings per share. The company's revenue was up 2.7% on a year-over-year basis.

EverCommerce News Roundup

Here are the key news stories impacting EverCommerce this week:

• Positive Sentiment: EverCommerce appointed Alex Goor as chief executive officer effective August 6. Goor brings technology and fintech experience, while founder Eric Remer will remain on the board, potentially providing continuity as the company pursues additional growth and value creation. EverCommerce Appoints Alex Goor as Chief Executive Officer
• Positive Sentiment: Second-quarter revenue increased 2.7% year over year to approximately $152.0 million, essentially matching the $152.29 million consensus estimate. This indicates continued, though modest, top-line growth. EverCommerce Announces Second Quarter 2026 Financial Results
• Neutral Sentiment: CEO Eric Remer sold 5,757 shares on August 5 and 13,443 shares on August 4, while President Matthew Feierstein sold 10,000 shares on August 5 and another 10,000 shares on August 3. The transactions were executed under pre-arranged Rule 10b5-1 plans, and each executive retains a substantial stake, reducing their immediate significance.
• Negative Sentiment: Second-quarter EPS was $0.05, below the $0.15 analyst consensus, despite revenue broadly meeting expectations. The shortfall highlights profitability pressure and is the most significant negative earnings catalyst. EverCommerce Earnings Report
• Negative Sentiment: Third-quarter revenue guidance of $151.5 million to $154.5 million trails the $156.8 million consensus at both ends of the range, signaling slower near-term growth. Full-year revenue guidance of $612 million to $632 million is near consensus at the midpoint but offers limited upside.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on EVCM. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $14.00 price objective on shares of EverCommerce in a research note on Friday, May 8th. Canaccord Genuity Group increased their price objective on shares of EverCommerce from $12.00 to $13.00 and gave the company a "buy" rating in a research note on Monday, May 11th. Weiss Ratings cut shares of EverCommerce from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, May 26th. Wall Street Zen downgraded EverCommerce from a "strong-buy" rating to a "buy" rating in a research note on Sunday, June 14th. Finally, Barclays upped their target price on EverCommerce from $8.50 to $10.00 and gave the company an "underweight" rating in a report on Thursday. Three analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $11.25.

Insider Buying and Selling

In related news, President Matthew David Feierstein sold 10,000 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $11.83, for a total value of $118,300.00. Following the transaction, the president owned 2,001,679 shares in the company, valued at approximately $23,679,862.57. This represents a 0.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric Richard Remer sold 5,757 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $11.83, for a total value of $68,105.31. Following the transaction, the chief executive officer directly owned 5,602,651 shares of the company's stock, valued at approximately $66,279,361.33. This trade represents a 0.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 306,500 shares of company stock worth $3,238,333 in the last ninety days. 10.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On EverCommerce

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. CoreCap Advisors LLC bought a new position in EverCommerce during the second quarter worth about $2,716,000. Tudor Investment Corp ET AL grew its stake in EverCommerce by 200.7% in the 3rd quarter. Tudor Investment Corp ET AL now owns 125,553 shares of the company's stock valued at $1,397,000 after buying an additional 83,794 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in EverCommerce by 11.9% during the 2nd quarter. JPMorgan Chase & Co. now owns 112,574 shares of the company's stock valued at $1,107,000 after acquiring an additional 11,996 shares during the period. Goldman Sachs Group Inc. lifted its position in shares of EverCommerce by 94.7% during the fourth quarter. Goldman Sachs Group Inc. now owns 104,563 shares of the company's stock worth $1,266,000 after acquiring an additional 50,854 shares in the last quarter. Finally, Los Angeles Capital Management LLC boosted its holdings in shares of EverCommerce by 111.6% in the fourth quarter. Los Angeles Capital Management LLC now owns 66,317 shares of the company's stock worth $749,000 after acquiring an additional 34,979 shares during the period. 97.91% of the stock is currently owned by institutional investors.

EverCommerce Stock Performance

The company has a quick ratio of 2.08, a current ratio of 2.08 and a debt-to-equity ratio of 0.72. The company has a market capitalization of $1.86 billion, a PE ratio of 61.83, a PEG ratio of 1.07 and a beta of 0.91. The company has a 50-day moving average price of $10.37 and a two-hundred day moving average price of $10.93.

About EverCommerce

EverCommerce, Inc is a provider of cloud-based software-as-a-service (SaaS) solutions designed for local service businesses. The company delivers an integrated platform that helps organizations manage customer interactions, streamline operations and facilitate recurring revenue. By combining multiple functions into a single interface, EverCommerce aims to simplify back-office processes and enhance the overall customer experience.

The company’s offerings encompass tools for appointment scheduling, payment processing, client relationship management, marketing automation, reputation management and reporting analytics.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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