Porch Group (NASDAQ:PRCH) Shares Gap Down - Here's What Happened

Key Points

• Porch Group shares gapped down on Monday, opening at $14.19 after closing at $14.85 and last trading around $13.92, a drop of about 5.4%.
• Analyst sentiment remains mixed but generally constructive: Porch has a Moderate Buy consensus rating with an average target price of $18.54, though some firms still have neutral or sell views.
• The company recently beat first-quarter expectations, reporting EPS of -$0.04 versus the expected -$0.10 and revenue of $109.44 million versus $94.72 million estimated, even as profitability remained negative.

Porch Group, Inc. (NASDAQ:PRCH - Get Free Report) shares gapped down prior to trading on Monday . The stock had previously closed at $14.85, but opened at $14.19. Porch Group shares last traded at $13.9180, with a volume of 262,665 shares trading hands.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Keefe, Bruyette & Woods reiterated a "market perform" rating and set a $16.25 target price (up from $13.00) on shares of Porch Group in a report on Monday. Stephens started coverage on Porch Group in a report on Monday, May 4th. They issued an "overweight" rating and a $12.00 price target for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Porch Group in a report on Friday, May 22nd. Finally, Benchmark lifted their price objective on Porch Group from $21.00 to $22.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Six investment analysts have rated the stock with 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, the stock presently has an average rating of "Moderate Buy" and an average target price of $18.54.

Porch Group Stock Down 5.4%

The firm has a market capitalization of $1.79 billion, a P/E ratio of -82.67 and a beta of 3.13. The firm's 50-day moving average is $11.58 and its 200 day moving average is $9.27. The company has a debt-to-equity ratio of 14.87, a quick ratio of 1.28 and a current ratio of 1.28.

Porch Group (NASDAQ:PRCH - Get Free Report) last announced its earnings results on Tuesday, April 28th. The company reported ($0.04) earnings per share for the quarter, topping analysts' consensus estimates of ($0.10) by $0.06. Porch Group had a negative net margin of 3.41% and a negative return on equity of 115.59%. The firm had revenue of $109.44 million during the quarter, compared to analyst estimates of $94.72 million. As a group, equities research analysts predict that Porch Group, Inc. will post -0.04 EPS for the current fiscal year.

Insider Buying and Selling at Porch Group

In related news, CEO Matt Ehrlichman sold 145,882 shares of the stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $6.84, for a total transaction of $997,832.88. Following the completion of the transaction, the chief executive officer directly owned 17,163,175 shares in the company, valued at approximately $117,396,117. This trade represents a 0.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 2,213,386 shares of company stock worth $20,332,837 over the last ninety days. 27.78% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Porch Group

Several hedge funds have recently made changes to their positions in the business. GC Wealth Management RIA LLC bought a new stake in shares of Porch Group in the first quarter worth $29,230,000. Invesco Ltd. increased its stake in Porch Group by 448.4% in the 3rd quarter. Invesco Ltd. now owns 3,795,064 shares of the company's stock valued at $63,681,000 after buying an additional 3,103,018 shares during the last quarter. Park West Asset Management LLC increased its stake in Porch Group by 131.3% in the 4th quarter. Park West Asset Management LLC now owns 5,050,000 shares of the company's stock valued at $46,106,000 after buying an additional 2,867,084 shares during the last quarter. Granahan Investment Management LLC lifted its position in Porch Group by 20.3% during the 4th quarter. Granahan Investment Management LLC now owns 11,590,428 shares of the company's stock worth $105,821,000 after buying an additional 1,953,736 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its position in Porch Group by 264.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,084,265 shares of the company's stock worth $9,899,000 after buying an additional 786,583 shares in the last quarter. 48.48% of the stock is owned by institutional investors.

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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