EverCommerce (NASDAQ:EVCM) Shares Gap Down - Should You Sell?

Key Points

• EverCommerce shares fell sharply, opening at $8.92 versus a prior close of $9.89 and later trading near $9.20.
• Analyst sentiment is mixed but leans neutral: the consensus rating is “Hold” with an $11.00 price target, based on three Buy, five Hold and two Sell ratings.
• The company missed quarterly earnings expectations, reporting $0.05 per share versus the $0.15 consensus estimate, while insiders have sold about 539,807 shares worth $5.3 million over the past 90 days.

EverCommerce Inc. (NASDAQ:EVCM - Get Free Report) shares gapped down prior to trading on Monday. The stock had previously closed at $9.89, but opened at $8.92. EverCommerce shares last traded at $9.1960, with a volume of 3,494 shares trading hands.

Analyst Ratings Changes

A number of brokerages have recently issued reports on EVCM. Wall Street Zen cut shares of EverCommerce from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 26th. Weiss Ratings upgraded shares of EverCommerce from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, September 24th. Royal Bank Of Canada dropped their price objective on EverCommerce from $11.00 to $10.00 and set a "sector perform" rating for the company in a report on Thursday, August 6th. Finally, Barclays boosted their price objective on shares of EverCommerce from $8.50 to $10.00 and gave the company an "underweight" rating in a research report on Thursday, August 6th. Three equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $11.00.

EverCommerce Price Performance

The stock has a market cap of $1.61 billion, a P/E ratio of 50.56, a P/E/G ratio of 0.87 and a beta of 0.75. The company's 50 day moving average price is $9.25 and its 200-day moving average price is $10.16. The company has a quick ratio of 2.14, a current ratio of 2.14 and a debt-to-equity ratio of 0.72.

EverCommerce (NASDAQ:EVCM - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.05 earnings per share for the quarter, missing analysts' consensus estimates of $0.15 by ($0.10). EverCommerce had a net margin of 5.69% and a return on equity of 3.95%. The company had revenue of $152.02 million during the quarter, compared to analyst estimates of $152.29 million. During the same quarter in the previous year, the company earned $0.04 earnings per share. The business's revenue for the quarter was up 2.7% on a year-over-year basis. As a group, sell-side analysts expect that EverCommerce Inc. will post 0.52 earnings per share for the current year.

Insider Activity

In other news, Director Eric Remer sold 47,353 shares of the company's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $8.24, for a total value of $390,188.72. Following the sale, the director directly owned 5,022,792 shares of the company's stock, valued at approximately $41,387,806.08. This represents a 0.93% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 539,807 shares of company stock valued at $5,298,817. 10.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On EverCommerce

A number of hedge funds have recently bought and sold shares of the company. CoreCap Advisors LLC bought a new stake in EverCommerce in the second quarter worth approximately $2,716,000. BlackRock Inc. bought a new position in shares of EverCommerce during the 2nd quarter worth approximately $10,724,000. Engineers Gate Manager LP grew its position in shares of EverCommerce by 16.7% during the 2nd quarter. Engineers Gate Manager LP now owns 20,821 shares of the company's stock worth $209,000 after buying an additional 2,982 shares during the period. Bank of America Corp DE acquired a new stake in shares of EverCommerce during the 2nd quarter worth approximately $125,000. Finally, Deutsche Bank AG bought a new stake in shares of EverCommerce in the 2nd quarter valued at $144,000. Institutional investors own 97.91% of the company's stock.

EverCommerce Company Profile

EverCommerce, Inc is a Denver-based provider of integrated software and payment solutions for service-oriented small and medium-sized businesses. The company develops and operates vertical-market software designed to help businesses manage customer relationships, scheduling, communications, billing, payments, marketing and other administrative functions.

Its solutions serve a range of industries, including health services, home and field services, fitness and wellness, and other professional services.

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