Evolent Health (NYSE:EVH) Shares Gap Down Following Weak Earnings

Key Points

• Evolent Health's stock price opened significantly lower at $8.39 after closing at $9.69, reflecting a downward movement of approximately 10.8% before market activities began.
• Despite the stock's drop, multiple analysts maintain a "buy" rating with target prices ranging from $13.00 to $17.93, indicating confidence in the company's future performance.
• In their latest earnings report, Evolent Health missed earnings expectations with a reported $0.06 EPS, compared to a consensus estimate of $0.08 EPS, amid a revenue decline of 24.4% year-over-year.

Evolent Health, Inc (NYSE:EVH - Get Free Report)'s share price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $9.69, but opened at $8.39. Evolent Health shares last traded at $8.59, with a volume of 2,409,684 shares.

The technology company reported ($0.10) EPS for the quarter, missing analysts' consensus estimates of $0.10 by ($0.20). The firm had revenue of $444.33 million for the quarter, compared to analysts' expectations of $459.43 million. Evolent Health had a positive return on equity of 1.78% and a negative net margin of 5.94%. The firm's revenue for the quarter was down 31.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.30 earnings per share.

Analyst Ratings Changes

EVH has been the subject of a number of analyst reports. Truist Financial boosted their price target on Evolent Health from $14.00 to $16.00 and gave the stock a "buy" rating in a report on Thursday, July 17th. JMP Securities reissued a "market outperform" rating and issued a $13.00 price target on shares of Evolent Health in a report on Friday, June 20th. Needham & Company LLC reissued a "buy" rating and issued a $15.00 price target on shares of Evolent Health in a report on Tuesday, May 13th. Finally, UBS Group boosted their price target on Evolent Health from $14.00 to $15.00 and gave the stock a "buy" rating in a report on Friday, May 9th. One investment analyst has rated the stock with a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $17.93.

Institutional Investors Weigh In On Evolent Health

Institutional investors have recently added to or reduced their stakes in the company. Banque Cantonale Vaudoise purchased a new stake in Evolent Health during the first quarter valued at about $25,000. Nisa Investment Advisors LLC grew its position in Evolent Health by 88.0% during the second quarter. Nisa Investment Advisors LLC now owns 2,551 shares of the technology company's stock valued at $29,000 after acquiring an additional 1,194 shares during the period. Parallel Advisors LLC grew its position in Evolent Health by 82.6% during the second quarter. Parallel Advisors LLC now owns 3,487 shares of the technology company's stock valued at $39,000 after acquiring an additional 1,577 shares during the period. Strs Ohio purchased a new stake in Evolent Health during the first quarter valued at about $47,000. Finally, US Bancorp DE grew its position in Evolent Health by 291.0% during the first quarter. US Bancorp DE now owns 5,153 shares of the technology company's stock valued at $49,000 after acquiring an additional 3,835 shares during the period.

Evolent Health Stock Performance

The stock has a 50-day simple moving average of $9.96 and a 200-day simple moving average of $9.63. The company has a debt-to-equity ratio of 0.69, a current ratio of 0.98 and a quick ratio of 0.98. The stock has a market cap of $1.11 billion, a PE ratio of -5.88 and a beta of 0.82.

About Evolent Health

Evolent Health, Inc, through its subsidiary, Evolent Health LLC, offers specialty care management services in oncology, cardiology, and musculoskeletal markets in the United States. The company provides platform for health plan administration and value-based business infrastructure. It offers administrative services, such as health plan services, pharmacy benefits management, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients.