There is no doubt that Porch Group Inc. (PRCH) ticks all the boxes.

Porch Group Inc. (NASDAQ: PRCH) stock jumped 9.20% on Monday to $2.73 against a previous-day closing price of $2.50. With 3.41 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.12 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $2.7600 whereas the lowest price it dropped to was $2.4000. The 52-week range on PRCH shows that it touched its highest point at $11.00 and its lowest point at $0.94 during that stretch. It currently has a 1-year price target of $6.05.

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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 PRCH was up-trending over the past week, with a rise of 13.75%, but this was up by 45.21% over a month. Three-month performance surged to 89.58% while six-month performance rose 10.53%. The stock lost -74.63% in the past year, while it has gained 45.21% so far this year. A look at the trailing 12-month EPS for PRCH yields -1.42 with Next year EPS estimates of -0.76. For the next quarter, that number is -0.27. This implies an EPS growth rate of 42.10% for this year and 49.30% for next year.

Float and Shares Shorts:

At present, 100.55 million PRCH shares are outstanding with a float of 82.21 million shares on hand for trading. On Oct 13, 2022, short shares totaled 10.93 million, which was 10.96% higher than short shares on Sep 14, 2022. In addition to Mr. Matthew Ehrlichman as the firm’s Founder, Chairman & CEO, Mr. Martin L. Heimbigner CPA serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 90.76% of PRCH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.86% of PRCH, in contrast to 22.59% held by mutual funds. Shares owned by individuals account for 20.24%. As the largest shareholder in PRCH with 12.92% of the stake, Granahan Investment Management, L holds 12,991,796 shares worth 12,991,796. A second-largest stockholder of PRCH, Park West Asset Management LLC, holds 9,638,164 shares, controlling over 9.59% of the firm’s shares. Portolan Capital Management LLC is the third largest shareholder in PRCH, holding 5,904,286 shares or 5.87% stake. With a 3.14% stake in PRCH, the Fidelity Small Cap Growth Fund is the largest stakeholder. A total of 3,157,693 shares are owned by the mutual fund manager. The JNL Multi-Manager Small Cap Growt, which owns about 2.93% of PRCH stock, is the second-largest Mutual Fund holder. It holds 2,941,826 shares valued at 5.53 million. Vanguard Total Stock Market Index holds 2.66% of the stake in PRCH, owning 2,673,021 shares worth 5.03 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PRCH since 11 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 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 PRCH analysts setting a high price target of $14.00 and a low target of $1.40, the average target price over the next 12 months is $5.89. Based on these targets, PRCH could surge 412.82% to reach the target high and fall by -48.72% to reach the target low. Reaching the average price target will result in a growth of 115.75% 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. PRCH will report FY 2022 earnings on 02/28/2024. Analysts have provided yearly estimates in a range of -$1.40 being high and -$1.54 being low. For PRCH, this leads to a yearly average estimate of -$1.50. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Porch Group Inc. surprised analysts by -$0.69 when it reported -$0.88 EPS against a consensus estimate of -$0.19. The surprise factor in the prior quarter was -$0.06. Based on analyst estimates, the high estimate for the next quarter is -$0.26 and the low estimate is -$0.34. The average estimate for the next quarter is thus -$0.29.

Summary of Insider Activity:

Insiders traded PRCH stock several times over the past three months with 14 Buys and 4 Sells. In these transactions, 1,329,882 shares were bought while 27,389 shares were sold. The number of buy transactions has increased to 40 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 3,518,118 while 170,774 shares were sold.

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