Porch Group (NASDAQ:PRCH) Reaches New 12-Month High - Here's Why

Key Points

• Porch Group shares hit a new 52-week high, trading around $21.83, above the previous close of $21.52.
• The company beat quarterly expectations, reporting EPS of $0.10 versus $0.01 expected and revenue of $143.86 million versus a $134.65 million consensus.
• Analyst sentiment is broadly positive: the stock has a consensus “Buy” rating, with an average price target of $20.79; Oppenheimer raised its target to $25.

Porch Group, Inc. (NASDAQ:PRCH - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Wednesday. The company traded as high as $21.82 and last traded at $21.83, with a volume of 5,785 shares trading hands. The stock had previously closed at $21.52.

Analysts Set New Price Targets

Several research firms have commented on PRCH. Oppenheimer increased their price objective on shares of Porch Group from $20.00 to $25.00 and gave the company an "outperform" rating in a research report on Thursday, October 29th. Keefe, Bruyette & Woods boosted their target price on shares of Porch Group from $16.25 to $16.50 and gave the stock a "market perform" rating in a report on Thursday, July 30th. Benchmark upped their target price on shares of Porch Group from $22.00 to $23.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Cantor Fitzgerald increased their price target on shares of Porch Group from $18.00 to $20.00 and gave the company an "overweight" rating in a report on Friday, September 25th. Finally, Zacks Research upgraded Porch Group from a "hold" rating to a "strong-buy" rating in a research report on Thursday, October 15th. Two research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Porch Group has a consensus rating of "Buy" and an average price target of $20.79.

Porch Group Price Performance

The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 13.21. The firm's 50 day simple moving average is $17.38 and its 200 day simple moving average is $12.14. The company has a market capitalization of $2.83 billion, a PE ratio of 270.69 and a beta of 3.16.

Porch Group (NASDAQ:PRCH - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The company reported $0.10 earnings per share for the quarter, beating analysts' consensus estimates of $0.01 by $0.09. Porch Group had a net margin of 1.81% and a return on equity of 39.28%. The business had revenue of $143.86 million for the quarter, compared to analysts' expectations of $134.65 million. As a group, research analysts anticipate that Porch Group, Inc. will post -0.01 EPS for the current fiscal year.

Insider Activity at Porch Group

In related news, Director Sean Davis Kell sold 10,500 shares of the company's stock in a transaction dated Thursday, October 29th. The shares were sold at an average price of $20.00, for a total transaction of $210,000.00. Following the transaction, the director directly owned 303,147 shares in the company, valued at approximately $6,062,940. This represents a 3.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Matthew Neagle sold 50,000 shares of the stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $16.46, for a total transaction of $823,000.00. Following the completion of the sale, the chief operating officer directly owned 1,940,705 shares in the company, valued at $31,944,004.30. This trade represents a 2.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 353,054 shares of company stock worth $6,222,022 in the last three months. 27.78% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Osbon Capital Management LLC purchased a new stake in Porch Group in the 2nd quarter valued at about $40,000. State of Wyoming purchased a new position in shares of Porch Group during the second quarter worth approximately $64,000. Persistent Asset Partners Ltd purchased a new position in shares of Porch Group during the second quarter worth approximately $103,000. Integrated Wealth Concepts LLC bought a new stake in shares of Porch Group during the second quarter valued at approximately $138,000. Finally, PNC Financial Services Group Inc. raised its stake in shares of Porch Group by 697.8% during the first quarter. PNC Financial Services Group Inc. now owns 9,390 shares of the company's stock valued at $67,000 after acquiring an additional 8,213 shares in the last quarter. Institutional investors own 48.48% of the company's stock.

About Porch Group

Porch Group, Inc is a technology company that provides software and services for the residential home services industry. Its platform is designed to help businesses manage customer relationships, scheduling, communications, payments, marketing and other operational workflows.

The company serves professionals involved in the home-buying and home-maintenance ecosystem, including home inspection companies and other service providers. Its offerings have included specialized software platforms such as Inspection Support Network and Floify, which support inspection management and mortgage-related workflows, respectively.

Founded in 2012 by Matt Ehrlichman, Porch initially operated as a consumer-focused home improvement marketplace before expanding into vertical software and related services.

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