Evolent Health (NYSE:EVH) Shares Up 8.1% - Here's What Happened

Key Points

• Evolent Health shares jumped 8.1% to $4.8450, although trading volume was roughly 92% below the stock’s average daily volume.
• Analyst sentiment is broadly positive: the stock has a consensus “Moderate Buy” rating from 16 analysts, with an average price target of $5.96, despite several recent target-price reductions.
• The company beat quarterly EPS expectations with $0.02 versus a projected loss of $0.01, while revenue rose 46.9% year over year to $484.5 million but missed estimates of $597.7 million; an executive also sold 65,892 shares under a pre-arranged trading plan.

Evolent Health, Inc (NYSE:EVH - Get Free Report)'s stock price shot up 8.1% on Tuesday. The company traded as high as $4.80 and last traded at $4.8450. Approximately 238,234 shares traded hands during trading, a decline of 92% from the average daily volume of 2,905,948 shares. The stock had previously closed at $4.48.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on EVH shares. Citigroup upgraded shares of Evolent Health from a "neutral" rating to a "buy" rating and lowered their target price for the company from $6.75 to $6.00 in a report on Monday, August 10th. Canaccord Genuity Group cut their target price on shares of Evolent Health from $7.00 to $6.00 and set a "buy" rating on the stock in a research note on Monday, August 10th. Truist Financial cut their target price on Evolent Health from $7.00 to $6.00 and set a "hold" rating on the stock in a research report on Wednesday, August 12th. JPMorgan Chase & Co. lifted their target price on Evolent Health from $5.00 to $6.00 and gave the company an "overweight" rating in a research note on Tuesday, August 18th. Finally, TD Cowen boosted their target price on shares of Evolent Health from $5.00 to $6.00 and gave the company a "buy" rating in a research note on Monday, August 17th. Eleven research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $5.96.

Evolent Health Stock Performance

The company's fifty day simple moving average is $4.17 and its 200 day simple moving average is $4.14. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 2.52. The stock has a market capitalization of $548.91 million, a price-to-earnings ratio of -1.06 and a beta of 1.02.

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

Insider Activity

In other news, President Daniel Mccarthy sold 65,892 shares of the company's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $5.00, for a total transaction of $329,460.00. Following the completion of the transaction, the president directly owned 655,133 shares of the company's stock, valued at approximately $3,275,665. This represents a 9.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.48% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Maverick Capital Ltd. grew its position in Evolent Health by 1.3% in the 1st quarter. Maverick Capital Ltd. now owns 2,572,763 shares of the technology company's stock valued at $5,866,000 after acquiring an additional 32,833 shares during the last quarter. Congress Asset Management Co. grew its stake in shares of Evolent Health by 20.3% during the 3rd quarter. Congress Asset Management Co. now owns 275,158 shares of the technology company's stock worth $960,000 after purchasing an additional 46,466 shares during the period. Public Employees Retirement System of Ohio acquired a new position in shares of Evolent Health during the 2nd quarter worth approximately $760,000. Sei Investments Co. lifted its stake 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 worth $689,000 after buying an additional 101,867 shares in the last quarter. Finally, First Trust Advisors LP purchased a new position in Evolent Health during the first quarter worth about $488,000.

About Evolent Health

Evolent Health, Inc is a healthcare services and technology company that helps health plans and providers manage specialty care and transition to value-based models. Its offerings are designed to coordinate care, improve clinical outcomes and support more predictable healthcare costs across complex medical conditions.

The company provides technology-enabled administrative, clinical and analytical services for areas such as oncology, cardiology, musculoskeletal care and other specialty-care categories.

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