EquipmentShare.com (NASDAQ:EQPT) Shares Gap Down - Should You Sell?

Key Points

• EQPT shares fell sharply, opening at $14.99 after closing at $16.21 and later trading around $12.73.
• Analysts have cut price targets, though ratings remain mixed: six Buy, five Hold, and one Sell, for a consensus Hold and average target of $30.
• EquipmentShare beat quarterly earnings estimates, reporting $0.16 per share versus $0.02 expected, and has authorized a $500 million share buyback.

EquipmentShare.com Inc (NASDAQ:EQPT - Get Free Report)'s share price gapped down before the market opened on Tuesday. The stock had previously closed at $16.21, but opened at $14.99. EquipmentShare.com shares last traded at $12.7320, with a volume of 990,234 shares changing hands.

Analysts Set New Price Targets

Several research firms have recently weighed in on EQPT. Wells Fargo & Company reduced their price target on EquipmentShare.com from $25.00 to $19.00 and set an "overweight" rating on the stock in a report on Monday, October 26th. Truist Financial dropped their price objective on EquipmentShare.com from $35.00 to $31.00 and set a "buy" rating on the stock in a research note on Monday, October 5th. Robert W. Baird reduced their price target on shares of EquipmentShare.com from $35.00 to $28.00 and set an "outperform" rating for the company in a report on Tuesday, October 20th. Citigroup reduced their price objective on EquipmentShare.com from $17.00 to $16.00 and set a "neutral" rating for the company in a research note on Tuesday, October 20th. Finally, UBS Group decreased their target price on shares of EquipmentShare.com from $24.00 to $22.00 and set a "neutral" rating for the company in a research report on Thursday, August 20th. Six research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $30.00.

EquipmentShare.com Price Performance

The stock has a market capitalization of $3.17 billion and a PE ratio of 40.96. The company's 50 day simple moving average is $16.95 and its 200 day simple moving average is $21.01. The company has a current ratio of 2.42, a quick ratio of 1.91 and a debt-to-equity ratio of 3.16.

EquipmentShare.com (NASDAQ:EQPT - Get Free Report) last announced its quarterly earnings results on Monday, November 9th. The company reported $0.16 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $0.14. The company had revenue of $1.47 billion during the quarter. On average, equities analysts anticipate that EquipmentShare.com Inc will post 0.45 earnings per share for the current year.

EquipmentShare.com declared that its Board of Directors has initiated a share buyback program on Wednesday, July 22nd that authorizes the company to buy back $500 million in shares. This repurchase authorization authorizes the company to purchase up to 11.3% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Insider Transactions at EquipmentShare.com

In other EquipmentShare.com news, insider William J. Schlacks bought 2,000 shares of the stock in a transaction on Friday, August 21st. The shares were purchased at an average cost of $18.64 per share, with a total value of $37,280.00. Following the completion of the transaction, the insider directly owned 60,950 shares of the company's stock, valued at $1,136,108. This represents a 3.39% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder Neil Chheda sold 1,285,402 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were 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 $834,629,306.56. The trade was a 3.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders acquired 85,950 shares of company stock valued at $1,537,422 and sold 2,201,032 shares valued at $45,393,501. 32.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On EquipmentShare.com

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Teachers Retirement System of The State of Kentucky increased its position in EquipmentShare.com by 318.2% in the 3rd quarter. Teachers Retirement System of The State of Kentucky now owns 83,049 shares of the company's stock valued at $1,443,000 after acquiring an additional 63,191 shares during the period. Optas LLC purchased a new position in EquipmentShare.com during the third quarter worth approximately $402,000. Fulcrum Asset Management LLP acquired a new stake in EquipmentShare.com in the 3rd quarter valued at $247,000. Brighton Jones LLC acquired a new stake in shares of EquipmentShare.com in the third quarter valued at about $304,000. Finally, Parallel Advisors LLC increased its stake in EquipmentShare.com by 23,621.2% during the 3rd quarter. Parallel Advisors LLC now owns 7,828 shares of the company's stock worth $136,000 after buying an additional 7,795 shares in the last quarter.

About EquipmentShare.com

EquipmentShare.com is a construction equipment rental and technology company serving contractors and other customers in the United States. Its offerings include heavy equipment, tools, aerial equipment and other machinery, along with equipment sales, parts and maintenance services.

The company also provides T3, a technology platform designed to help customers manage equipment, track assets and coordinate construction operations. By combining rentals with fleet and jobsite management tools, EquipmentShare aims to support customers' equipment needs both on and off the jobsite.

EquipmentShare was founded in 2015 by brothers Willy and Jabbok Schlacks and is headquartered in Columbia, Missouri.

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