Evolent Health (NYSE:EVH) Share Price Breaks Below 50-Day Moving Average - Should You Sell?

Key Points

• Evolent Health shares fell below their 50-day moving average, trading as low as $3.32 versus the $3.99 average, with the latest price around $3.47.
• Analyst sentiment remains generally positive: 11 analysts rate the stock Buy, four Hold, and one Sell, producing a “Moderate Buy” consensus and an average price target of $5.96.
• The company beat quarterly EPS expectations and reported 46.9% year-over-year revenue growth, but revenue missed estimates, profitability remained negative, and analysts expect a full-year loss.

Shares of Evolent Health, Inc (NYSE:EVH - Get Free Report) passed below its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $3.99 and traded as low as $3.32. Evolent Health shares last traded at $3.4740, with a volume of 1,772,512 shares changing hands.

Analyst Ratings Changes

EVH has been the topic of several analyst reports. Weiss Ratings downgraded Evolent Health from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday, September 14th. JPMorgan Chase & Co. lifted their price objective on shares of Evolent Health from $5.00 to $6.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 18th. Citigroup upgraded shares of Evolent Health from a "neutral" rating to a "buy" rating and cut their price objective for the company from $6.75 to $6.00 in a research report on Monday, August 10th. TD Cowen raised their price target on Evolent Health from $5.00 to $6.00 and gave the stock a "buy" rating in a research note on Monday, August 17th. Finally, Canaccord Genuity Group reduced their price objective on Evolent Health from $7.00 to $6.00 and set a "buy" rating on the stock in a report on Monday, August 10th. Eleven research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Evolent Health presently has an average rating of "Moderate Buy" and an average target price of $5.96.

Evolent Health Stock Performance

The company has a debt-to-equity ratio of 2.52, a quick ratio of 1.24 and a current ratio of 1.24. The firm's 50-day moving average price is $3.99 and its two-hundred day moving average price is $3.99. The stock has a market cap of $392.77 million, a price-to-earnings ratio of -0.76 and a beta of 1.02.

Evolent Health (NYSE:EVH - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The technology company reported $0.02 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.01) by $0.03. The business had revenue of $484.50 million during the quarter, compared to the consensus estimate of $597.70 million. Evolent Health had a negative net margin of 24.08% and a negative return on equity of 4.27%. The business's revenue was up 46.9% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.10) EPS. On average, analysts expect that Evolent Health, Inc will post -0.25 EPS for the current fiscal year.

Insider Activity

In related news, President Daniel Mccarthy sold 65,892 shares of the business's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $5.00, for a total value of $329,460.00. Following the sale, the president directly owned 655,133 shares in the company, valued at approximately $3,275,665. The trade was a 9.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.48% of the company's stock.

Institutional Trading of Evolent Health

A number of institutional investors and hedge funds have recently added to or reduced their stakes in EVH. Maverick Capital Ltd. lifted its stake in Evolent Health by 1.3% during the first quarter. Maverick Capital Ltd. now owns 2,572,763 shares of the technology company's stock worth $5,866,000 after purchasing an additional 32,833 shares in the last quarter. Castle Hook Partners LP purchased a new stake in shares of Evolent Health in the 4th quarter valued at $3,751,000. Public Employees Retirement System of Ohio purchased a new position in Evolent Health during the 2nd quarter valued at about $760,000. Sei Investments Co. raised its holdings in shares of Evolent Health by 50.8% in the first quarter. Sei Investments Co. now owns 302,281 shares of the technology company's stock valued at $689,000 after buying an additional 101,867 shares during the last quarter. Finally, First Trust Advisors LP purchased a new position in shares of Evolent Health during the first quarter worth about $488,000.

About Evolent Health

Evolent Health, Inc NYSE: EVH is a healthcare technology and services company focused on helping health plans and healthcare providers transition to value-based care. Its platform and services are designed to support the management of patient populations, improve clinical outcomes, and align healthcare payments with the quality and cost effectiveness of care.

The company provides solutions that may include specialty care management, population health management, administrative services, payment integrity, clinical decision support, and technology for coordinating care.

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