Porch Group (NASDAQ:PRCH) Stock Price Up 10.8% - Here's Why

Key Points

• Porch Group shares rose 10.8% to about $16.01, with the move supported by several analyst target increases. The stock has a “Moderate Buy” consensus rating and an average price target of $18.79.
• The company’s latest quarterly results exceeded expectations, reporting earnings of $0.05 per share versus an expected loss of $0.03 and revenue of $131.81 million compared with the $122.30 million consensus estimate.
• Insiders sold more than 1 million shares worth approximately $10.7 million over the past 90 days, while institutional ownership stands at 48.48%; CEO Matt Ehrlichman’s sale was made to cover tax obligations, and the CFO’s transaction followed a pre-arranged trading plan.

Porch Group, Inc. (NASDAQ:PRCH - Get Free Report) was up 10.8% on Monday . The company traded as high as $15.89 and last traded at $16.0060. Approximately 791,077 shares changed hands during trading, a decline of 56% from the average daily volume of 1,795,035 shares. The stock had previously closed at $14.45.

Analyst Upgrades and Downgrades

PRCH has been the subject of several analyst reports. Stephens initiated coverage on Porch Group in a research report on Monday, May 4th. They set an "overweight" rating and a $12.00 target price for the company. Benchmark upped their price target on Porch Group from $22.00 to $23.00 and gave the company a "buy" rating in a research report on Thursday. Cantor Fitzgerald increased their price objective on Porch Group from $13.00 to $18.00 and gave the stock an "overweight" rating in a research note on Thursday. Keefe, Bruyette & Woods lifted their price objective on Porch Group from $16.25 to $16.50 and gave the company a "market perform" rating in a report on Thursday. Finally, B. Riley Financial boosted their target price on shares of Porch Group from $19.00 to $21.00 and gave the company a "buy" rating in a research note on Monday. Six research 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. According to MarketBeat, Porch Group presently has a consensus rating of "Moderate Buy" and a consensus target price of $18.79.

Porch Group Stock Up 10.8%

The firm has a market capitalization of $2.04 billion, a price-to-earnings ratio of -133.42 and a beta of 3.13. The firm has a fifty day moving average price of $12.42 and a 200 day moving average price of $9.68. The company has a current ratio of 1.45, a quick ratio of 1.45 and a debt-to-equity ratio of 20.53.

Porch Group (NASDAQ:PRCH - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.05 earnings per share for the quarter, beating analysts' consensus estimates of ($0.03) by $0.08. Porch Group had a negative return on equity of 68.47% and a negative net margin of 2.67%.The firm had revenue of $131.81 million during the quarter, compared to analysts' expectations of $122.30 million. Sell-side analysts anticipate that Porch Group, Inc. will post -0.06 EPS for the current fiscal year.

Insider Activity

In other Porch Group news, CEO Matt Ehrlichman sold 120,368 shares of the firm's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $9.78, for a total value of $1,177,199.04. Following the completion of the sale, the chief executive officer owned 15,972,080 shares in the company, valued at approximately $156,206,942.40. This trade represents a 0.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Shawn Tabak sold 25,000 shares of the stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $16.13, for a total transaction of $403,250.00. Following the sale, the chief financial officer directly owned 240,495 shares in the company, valued at $3,879,184.35. This trade represents a 9.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,012,281 shares of company stock worth $10,696,082. 27.78% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in PRCH. AQR Capital Management LLC raised its stake in shares of Porch Group by 134.7% during the first quarter. AQR Capital Management LLC now owns 226,795 shares of the company's stock worth $1,653,000 after buying an additional 130,166 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Porch Group by 4.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 48,275 shares of the company's stock worth $352,000 after acquiring an additional 2,002 shares during the period. Goldman Sachs Group Inc. grew its holdings in Porch Group by 2.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,161,064 shares of the company's stock worth $8,464,000 after acquiring an additional 26,119 shares during the period. Creative Planning bought a new stake in shares of Porch Group during the 2nd quarter valued at $136,000. Finally, Legal & General Group Plc lifted its stake in shares of Porch Group by 1,203.8% in the 2nd quarter. Legal & General Group Plc now owns 108,759 shares of the company's stock valued at $1,282,000 after purchasing an additional 100,417 shares during the period. 48.48% of the stock is currently 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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