EquipmentShare.com (NASDAQ:EQPT) Stock Jumps 7.2% - Should You Buy?

Key Points

• EquipmentShare.com shares rose 7.2% to about $17.43, though trading volume was 82% below the stock’s average daily volume.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and a $30 average price target, despite several firms recently lowering their targets.
• The company reported quarterly earnings of $0.18 per share, beating estimates, and authorized a $500 million stock buyback covering up to 12.4% of outstanding shares. However, insiders have been net sellers over the past three months.

EquipmentShare.com Inc (NASDAQ:EQPT - Get Free Report)'s stock price rose 7.2% during trading on Tuesday. The company traded as high as $17.18 and last traded at $17.4330. 454,155 shares were traded during mid-day trading, a decline of 82% from the average daily volume of 2,497,085 shares. The stock had previously closed at $16.26.

Analyst Upgrades and Downgrades

EQPT has been the subject of a number of research analyst reports. UBS Group cut 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 note on Thursday, August 20th. Robert W. Baird decreased their price target on EquipmentShare.com from $35.00 to $28.00 and set an "outperform" rating on the stock in a research report on Tuesday, October 20th. Truist Financial decreased their price target on EquipmentShare.com from $35.00 to $31.00 and set a "buy" rating on the stock in a research report on Monday, October 5th. Citigroup dropped their price target on EquipmentShare.com from $17.00 to $16.00 and set a "neutral" rating for the company in a report on Tuesday, October 20th. Finally, BNP Paribas Exane started coverage on EquipmentShare.com in a research report on Monday, June 29th. They issued a "neutral" rating and a $22.00 price objective for the company. Six research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, EquipmentShare.com has a consensus rating of "Hold" and a consensus price target of $30.00.

EquipmentShare.com Price Performance

The stock has a 50-day simple moving average of $17.56 and a 200 day simple moving average of $21.30. The stock has a market capitalization of $4.62 billion and a P/E ratio of 58.79. The company has a debt-to-equity ratio of 3.16, a quick ratio of 1.91 and a current ratio of 2.42.

EquipmentShare.com (NASDAQ:EQPT - Get Free Report) last released its earnings results on Wednesday, August 12th. The company reported $0.18 earnings per share for the quarter, topping analysts' consensus estimates of ($0.10) by $0.28. The firm had revenue of $1.45 billion for the quarter. On average, equities analysts forecast that EquipmentShare.com Inc will post 0.45 earnings per share for the current fiscal year.

EquipmentShare.com announced that its Board of Directors has authorized a stock buyback program on Friday, July 10th that permits the company to repurchase $500 million in shares. This buyback authorization permits the company to repurchase up to 12.4% of its stock through open market purchases. Share buyback programs are often an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling at EquipmentShare.com

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of EQPT. State of Alaska Department of Revenue bought a new position in EquipmentShare.com during the third quarter worth $157,000. Arizona State Retirement System bought a new position in shares of EquipmentShare.com in the second quarter valued at about $205,000. Chico Wealth RIA acquired a new stake in shares of EquipmentShare.com during the 2nd quarter worth about $322,000. Bank of New York Mellon Corp bought a new stake in shares of EquipmentShare.com during the 2nd quarter worth about $326,000. Finally, BigSur Wealth Management LLC bought a new stake in shares of 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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