Evolent Health Inc. (NYSE: EVH) stock fell -2.52% on Friday to $35.58 against a previous-day closing price of $36.50. With 1.45 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.87 million shares. During the session, the Health Information Services company that operates in wider Healthcare sector, reached to the highest price of $36.76 whereas the lowest price it dropped to was $34.85. The 52-week range on EVH shows that it touched its highest point at $39.00 and its lowest point at $21.36 during that stretch. It currently has a 1-year price target of $42.29. Beta for the stock currently stands at 1.89.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of EVH was up-trending over the past week, with a rise of 3.97%, but this was up by 5.83% over a month. Three-month performance surged to 21.43% while six-month performance rose 51.02%. The stock gained 56.74% in the past year, while it has gained 28.59% so far this year. A look at the trailing 12-month EPS for EVH yields -0.28 with Next year EPS estimates of 0.59. For the next quarter, that number is 0.05. This implies an EPS growth rate of 90.90% for this year and 89.97% for next year. EPS is expected to grow by 30.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 37.00%.
Float and Shares Shorts:
At present, 89.51 million EVH shares are outstanding with a float of 83.39 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.42 million, which was 9.20% higher than short shares on Jun 14, 2022. In addition to Mr. Frank John Williams as the firm’s Co-Founder & Chairman, Mr. Seth Barrie Blackley serves as its Co-Founder, CEO & Director.
Through their ownership of 96.30% of EVH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.28% of EVH, in contrast to 46.67% held by mutual funds. Shares owned by individuals account for 14.56%. As the largest shareholder in EVH with 8.20% of the stake, The Vanguard Group, Inc. holds 7,508,173 shares worth 7,508,173. A second-largest stockholder of EVH, UMPC Health Plan, Inc., holds 6,434,283 shares, controlling over 7.03% of the firm’s shares. Engaged Capital LLC is the third largest shareholder in EVH, holding 5,775,800 shares or 6.31% stake. With a 2.95% stake in EVH, the CS Invt. Fds. 2 – is the largest stakeholder. A total of 2,700,000 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.67% of EVH stock, is the second-largest Mutual Fund holder. It holds 2,445,039 shares valued at 75.09 million. Alger Funds – Small Cap Focus Fun holds 2.32% of the stake in EVH, owning 2,128,115 shares worth 65.35 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EVH since 8 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With EVH analysts setting a high price target of $55.00 and a low target of $37.00, the average target price over the next 12 months is $45.71. Based on these targets, EVH could surge 54.58% to reach the target high and rise by 3.99% to reach the target low. Reaching the average price target will result in a growth of 28.47% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. EVH will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $0.72 being high and $0.11 being low. For EVH, this leads to a yearly average estimate of $0.40. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Evolent Health Inc. surprised analysts by $0.05 when it reported $0.10 EPS against a consensus estimate of $0.05. The surprise factor in the prior quarter was $0.12. Based on analyst estimates, the high estimate for the next quarter is $0.24 and the low estimate is -$0.02. The average estimate for the next quarter is thus $0.10.
Summary of Insider Activity:
Insiders traded EVH stock several times over the past three months with 9 Buys and 2 Sells. In these transactions, 50,076 shares were bought while 6,111 shares were sold. The number of buy transactions has increased to 33 while that of sell transactions has risen to 38 over the past year. The total number of shares bought during that period was 1,268,715 while 789,104 shares were sold.