Evolent Health (NYSE:EVH) Shares Down 4% - Should You Sell?

Key Points

• Evolent Health shares fell 4% to approximately $4.73 in midday trading, with volume sharply below the stock’s average.
• Analyst sentiment remains broadly positive, with 12 Buy ratings, four Holds and one Sell; however, several firms reduced their price targets, resulting in an average target of $5.96.
• The company exceeded quarterly EPS expectations and posted 46.9% year-over-year revenue growth, but revenue missed estimates and Evolent remains unprofitable, with a negative net margin and projected full-year EPS of -$0.25.

Evolent Health, Inc (NYSE:EVH - Get Free Report)'s stock price fell 4% during trading on Thursday . The stock traded as low as $4.63 and last traded at $4.7250. 204,012 shares traded hands during mid-day trading, a decline of 93% from the average session volume of 3,043,218 shares. The stock had previously closed at $4.92.

Analyst Upgrades and Downgrades

EVH has been the topic of a number of recent research reports. 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 research note on Monday, August 10th. Weiss Ratings lowered Evolent Health from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Tuesday, August 18th. Truist Financial dropped their target price on Evolent Health from $7.00 to $6.00 and set a "hold" rating on the stock in a report on Wednesday, August 12th. Citigroup raised Evolent Health from a "neutral" rating to a "buy" rating and reduced their price target for the stock from $6.75 to $6.00 in a research report on Monday, August 10th. Finally, JPMorgan Chase & Co. upped their price target on Evolent Health from $5.00 to $6.00 and gave the stock an "overweight" rating in a report on Tuesday, August 18th. Twelve investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Evolent Health has an average rating of "Moderate Buy" and an average target price of $5.96.

Evolent Health Price 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 stock has a market cap of $540.99 million, a price-to-earnings ratio of -1.05 and a beta of 0.79. The business's fifty day simple moving average is $4.78 and its 200 day simple moving average is $3.82.

Evolent Health (NYSE:EVH - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The technology company reported $0.02 earnings per share for the quarter, beating analysts' consensus estimates of ($0.01) by $0.03. The company had revenue of $484.50 million during the quarter, compared to analysts' expectations of $597.70 million. Evolent Health had a negative net margin of 24.08% and a negative return on equity of 4.27%. The firm's revenue for the quarter was up 46.9% on a year-over-year basis. During the same period in the prior year, the company posted ($0.10) EPS. Research analysts predict that Evolent Health, Inc will post -0.25 EPS for the current fiscal year.

Institutional Investors Weigh In On Evolent Health

Hedge funds have recently bought and sold shares of the business. CIBC Private Wealth Group LLC raised its position in shares of Evolent Health by 4,000.0% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 4,100 shares of the technology company's stock valued at $35,000 after purchasing an additional 4,000 shares in the last quarter. Strs Ohio acquired a new stake in shares of Evolent Health during the first quarter worth approximately $47,000. Headlands Technologies LLC bought a new stake in shares of Evolent Health in the second quarter worth $58,000. California State Teachers Retirement System increased its stake in shares of Evolent Health by 41.7% in the second quarter. California State Teachers Retirement System now owns 8,471 shares of the technology company's stock worth $46,000 after buying an additional 2,494 shares during the last quarter. Finally, Quantbot Technologies LP bought a new stake in shares of Evolent Health in the third quarter worth $88,000.

About Evolent Health

Evolent Health, Inc is a U.S.-based healthcare technology and services company that partners with health systems, physician organizations and health plans to design, build and operate value-based care programs. Headquartered in Arlington, Virginia, the company was founded in 2011 as a joint venture between TPG and the University of Pittsburgh Medical Center (UPMC). Evolent Health aims to help its clients transition from fee-for-service payment models to value-based care arrangements by leveraging its proprietary technology platforms and clinical expertise.

The company's core offerings include care management solutions, population health analytics and clinical advisory services.

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