Porch Group (NASDAQ:PRCH) Shares Down 11.5% - What's Next?

Key Points

• Shares fell 11.5% intraday to about $8.96 on Thursday with roughly 363,137 shares traded, a 78% drop from average daily volume, leaving market cap near $1.21 billion.
• Porch beat quarterly estimates (EPS -$0.04 vs -$0.10; revenue $109.4M vs $94.0M) but remains unprofitable with a negative net margin and negative ROE, while analysts hold a consensus "Moderate Buy" and an average target of $17.36.
• Insiders (including the CEO and CFO) have sold shares recently—1.13M shares (~$8.44M) over three months to cover tax withholding—while institutional investors have markedly increased positions, leaving institutions owning about 48.5% and insiders about 23.3% of the stock.

Porch Group, Inc. (NASDAQ:PRCH - Get Free Report) shares were down 11.5% on Thursday . The stock traded as low as $9.24 and last traded at $8.9640. Approximately 363,137 shares traded hands during mid-day trading, a decline of 78% from the average daily volume of 1,631,963 shares. The stock had previously closed at $10.13.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on PRCH shares. Zacks Research upgraded shares of Porch Group from a "strong sell" rating to a "hold" rating in a report on Friday, March 6th. Keefe, Bruyette & Woods raised shares of Porch Group from a "market perform" rating to an "outperform" rating and lowered their price objective for the stock from $13.00 to $10.50 in a research report on Wednesday, February 11th. Finally, Benchmark raised their target price on shares of Porch Group from $21.00 to $22.00 and gave the company a "buy" rating in a research report on Wednesday. Seven equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Porch Group currently has a consensus rating of "Moderate Buy" and an average target price of $17.36.

Porch Group Trading Down 3.8%

The stock has a market capitalization of $1.21 billion, a P/E ratio of -195.30 and a beta of 3.09. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 17.20. The stock's fifty day moving average price is $7.65 and its two-hundred day moving average price is $9.34.

Porch Group (NASDAQ:PRCH - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.10) by $0.06. The company had revenue of $109.44 million during the quarter, compared to analysts' expectations of $93.99 million. Porch Group had a negative net margin of 0.72% and a negative return on equity of 51.86%. Equities research analysts forecast that Porch Group, Inc. will post 0.02 EPS for the current year.

Insider Buying and Selling

In other news, CFO Shawn Tabak sold 7,875 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $7.68, for a total transaction of $60,480.00. Following the transaction, the chief financial officer owned 374,684 shares in the company, valued at $2,877,573.12. This trade represents a 2.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Matt Ehrlichman sold 123,518 shares of the firm's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $7.68, for a total value of $948,618.24. Following the completion of the transaction, the chief executive officer owned 16,804,553 shares in the company, valued at $129,058,967.04. The trade was a 0.73% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,132,154 shares of company stock valued at $8,440,062 over the last three months. 23.32% of the stock is owned by company insiders.

Hedge Funds Weigh In On Porch Group

Institutional investors and hedge funds have recently made changes to their positions in the stock. Invesco Ltd. lifted its stake in Porch Group by 448.4% during the third quarter. Invesco Ltd. now owns 3,795,064 shares of the company's stock worth $63,681,000 after purchasing an additional 3,103,018 shares during the last quarter. Park West Asset Management LLC lifted its stake in Porch Group by 131.3% during the fourth quarter. Park West Asset Management LLC now owns 5,050,000 shares of the company's stock worth $46,106,000 after purchasing an additional 2,867,084 shares during the last quarter. Granahan Investment Management LLC lifted its stake in Porch Group by 20.3% during the fourth quarter. Granahan Investment Management LLC now owns 11,590,428 shares of the company's stock worth $105,821,000 after purchasing an additional 1,953,736 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in Porch Group by 264.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,084,265 shares of the company's stock valued at $9,899,000 after buying an additional 786,583 shares during the last quarter. Finally, Wellington Management Group LLP purchased a new stake in Porch Group in the third quarter valued at approximately $12,747,000. 48.48% of the stock is owned by institutional investors and hedge funds.

Porch Group Company Profile

Porch Group, Inc operates a technology-driven home services platform designed to connect homeowners with professional contractors, maintenance providers and home improvement specialists. Through its online marketplace and proprietary software solutions, Porch enables users to research, compare and book services ranging from home repairs and remodeling to maintenance and renovations. The company's platform integrates detailed provider profiles, customer reviews and real-time appointment scheduling to streamline the process of sourcing and managing home projects.

In addition to its core marketplace, Porch offers software products tailored for service professionals.

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