EquipmentShare.com (NASDAQ:EQPT) Shares Climb 8.6% - Should You Buy?

Key Points

• EquipmentShare.com shares surged 8.6% to about $15.15, despite trading below their 50-day and 200-day moving averages. The company has a $3.82 billion market capitalization and reported quarterly EPS of $0.18, exceeding expectations.
• Analyst sentiment is mixed: six analysts rate the stock Buy, five Hold and one Sell, resulting in a consensus Hold rating and a $30.78 price target.
• The board authorized a $500 million share-repurchase program, potentially covering up to 12.4% of outstanding shares, while insider activity was net negative over the past 90 days as sales substantially exceeded purchases.

EquipmentShare.com Inc (NASDAQ:EQPT - Get Free Report)'s stock price shot up 8.6% during mid-day trading on Tuesday. The stock traded as high as $15.12 and last traded at $15.1450. 1,354,561 shares changed hands during mid-day trading, a decline of 46% from the average session volume of 2,496,150 shares. The stock had previously closed at $13.95.

Wall Street Analysts Forecast Growth

EQPT has been the topic of several recent analyst reports. BNP Paribas Exane began coverage on shares of EquipmentShare.com in a research note on Monday, June 29th. They issued a "neutral" rating and a $22.00 target price on the stock. Robert W. Baird lowered their target price on EquipmentShare.com from $35.00 to $28.00 and set an "outperform" rating for the company in a research note on Tuesday. UBS Group cut their target price on shares of EquipmentShare.com from $24.00 to $22.00 and set a "neutral" rating on the stock in a research report on Thursday, August 20th. Citizens Jmp reaffirmed a "market outperform" rating and issued a $42.00 target price on shares of EquipmentShare.com in a research note on Monday, June 22nd. Finally, Truist Financial lowered their price target on shares of EquipmentShare.com from $35.00 to $31.00 and set a "buy" rating for the company in a research report on Monday, October 5th. Six analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $30.78.

EquipmentShare.com Stock Up 8.1%

The company has a market cap of $3.82 billion and a price-to-earnings ratio of 48.65. The company has a current ratio of 2.42, a quick ratio of 1.91 and a debt-to-equity ratio of 3.16. The firm's fifty day moving average price is $17.89 and its 200-day moving average price is $19.63.

EquipmentShare.com (NASDAQ:EQPT - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The company reported $0.18 EPS for the quarter, topping the consensus estimate of ($0.10) by $0.28. The business had revenue of $1.45 billion for the quarter. Sell-side analysts predict that EquipmentShare.com Inc will post 0.45 earnings per share for the current year.

EquipmentShare.com announced that its Board of Directors has initiated a stock repurchase program on Friday, July 10th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to purchase up to 12.4% of its shares through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In related news, major shareholder Neil Chheda sold 1,285,402 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $20.62, for a total value of $26,504,989.24. Following the completion of the transaction, the insider directly owned 40,476,688 shares in the company, valued at approximately $834,629,306.56. The trade was a 3.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Jabbok Schlacks bought 22,900 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were acquired at an average cost of $17.76 per share, with a total value of $406,704.00. Following the completion of the purchase, the chief executive officer owned 125,000 shares in the company, valued at $2,220,000. This represents a 22.43% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders acquired 85,950 shares of company stock worth $1,537,422 and sold 2,201,032 shares worth $45,393,501. Corporate insiders own 32.81% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. State of Alaska Department of Revenue acquired a new stake in shares of EquipmentShare.com during the third quarter worth $157,000. Arizona State Retirement System acquired a new position in EquipmentShare.com in the 2nd quarter worth $205,000. Chico Wealth RIA acquired a new position in EquipmentShare.com in the 2nd quarter worth $322,000. Bank of New York Mellon Corp acquired a new position in EquipmentShare.com in the 2nd quarter worth $326,000. Finally, BigSur Wealth Management LLC bought a new position in EquipmentShare.com during the 3rd quarter worth about $434,000.

About EquipmentShare.com

EquipmentShare is a construction equipment rental and technology company that combines equipment, digital tools and services for contractors and other businesses. Its operations include the rental of construction equipment, equipment sales, maintenance and repair, transportation, and related support services.

The company's technology platform, including its T3 telematics and fleet-management tools, is designed to help customers monitor equipment location, utilization, maintenance needs and operating conditions.

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