Porch Group (NASDAQ:PRCH) Shares Down 7.3% - Time to Sell?

Key Points

• Porch Group shares fell 7.3% to about $16.64, on trading volume 58% below the daily average.
• Analyst sentiment remains generally positive: five analysts rate the stock Buy, two Hold and one Sell, producing a “Moderate Buy” consensus and an average price target of $18.42.
• The company beat quarterly expectations, reporting $0.05 in earnings per share versus a $0.03 loss estimate and revenue of $131.81 million versus $122.30 million expected. However, it remains unprofitable, with a negative net margin and projected full-year EPS of -$0.09; its CFO also sold 25,000 shares under a pre-arranged trading plan.

Porch Group, Inc. (NASDAQ:PRCH - Get Free Report) fell 7.3% on Tuesday . The stock traded as low as $16.71 and last traded at $16.6350. 731,495 shares were traded during trading, a decline of 58% from the average daily volume of 1,727,255 shares. The stock had previously closed at $17.94.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the company. Cantor Fitzgerald raised their target price on Porch Group from $13.00 to $18.00 and gave the stock an "overweight" rating in a research report on Thursday, July 30th. Benchmark increased their price objective on Porch Group from $22.00 to $23.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Keefe, Bruyette & Woods lifted their target price on Porch Group from $16.25 to $16.50 and gave the company a "market perform" rating in a research note on Thursday, July 30th. B. Riley Financial upped their target price on Porch Group from $19.00 to $21.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Finally, Weiss Ratings upgraded shares of Porch Group from a "sell (d-)" rating to a "sell (d+)" rating in a report on Thursday, July 30th. Five research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Porch Group has a consensus rating of "Moderate Buy" and an average price target of $18.42.

Porch Group Price Performance

The company has a market capitalization of $2.20 billion, a PE ratio of -138.54 and a beta of 3.17. The company has a debt-to-equity ratio of 20.53, a quick ratio of 1.45 and a current ratio of 1.45. The stock has a 50 day moving average price of $15.42 and a two-hundred day moving average price of $11.30.

Porch Group (NASDAQ:PRCH - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.05 earnings per share for the quarter, beating the consensus estimate of ($0.03) by $0.08. Porch Group had a negative net margin of 2.67% and a negative return on equity of 68.47%. The firm had revenue of $131.81 million for the quarter, compared to analyst estimates of $122.30 million. Equities analysts forecast that Porch Group, Inc. will post -0.09 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Shawn Tabak sold 25,000 shares of Porch Group stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $16.21, for a total value of $405,250.00. Following the transaction, the chief financial officer owned 215,495 shares of the company's stock, valued at $3,493,173.95. This trade represents a 10.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 27.78% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of PRCH. AQR Capital Management LLC increased its stake in Porch Group by 134.7% during the first quarter. AQR Capital Management LLC now owns 226,795 shares of the company's stock valued at $1,653,000 after acquiring an additional 130,166 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Porch Group by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 48,275 shares of the company's stock valued at $352,000 after purchasing an additional 2,002 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Porch Group by 2.3% in the first quarter. Goldman Sachs Group Inc. now owns 1,161,064 shares of the company's stock valued at $8,464,000 after purchasing an additional 26,119 shares in the last quarter. Creative Planning acquired a new position in shares of Porch Group in the second quarter valued at $136,000. Finally, Legal & General Group Plc lifted its position in Porch Group by 1,203.8% in the second quarter. Legal & General Group Plc now owns 108,759 shares of the company's stock worth $1,282,000 after purchasing an additional 100,417 shares during the period. Institutional investors and hedge funds own 48.48% of the company's stock.

Porch Group Company Profile

Porch Group, Inc operates a technology-driven home services platform designed to connect homeowners with professional contractors, maintenance providers and home improvement specialists. Through its online marketplace and proprietary software solutions, Porch enables users to research, compare and book services ranging from home repairs and remodeling to maintenance and renovations. The company's platform integrates detailed provider profiles, customer reviews and real-time appointment scheduling to streamline the process of sourcing and managing home projects.

In addition to its core marketplace, Porch offers software products tailored for service professionals.

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