Evolent Health Inc. (NYSE: EVH) stock fell -1.92% on Tuesday to $31.19 against a previous-day closing price of $31.80. With 0.77 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.16 million shares. During the session, the Health Information Services company that operates in wider Healthcare sector, reached to the highest price of $32.20 whereas the lowest price it dropped to was $30.94. The 52-week range on EVH shows that it touched its highest point at $39.78 and its lowest point at $21.36 during that stretch. It currently has a 1-year price target of $45.25. Beta for the stock currently stands at 1.55.
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 1.10%, but this was up by 16.12% over a month. Three-month performance dropped to -0.57% while six-month performance fell -6.87%. The stock gained 40.88% in the past year, while it has gained 11.08% so far this year. A look at the trailing 12-month EPS for EVH yields -0.05 with Next year EPS estimates of 0.65. For the next quarter, that number is 0.16. This implies an EPS growth rate of 90.90% for this year and -29.78% 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, 95.29 million EVH shares are outstanding with a float of 93.07 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.68 million, which was 6.88% higher than short shares on Sep 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 91.96% of EVH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.98% of EVH, in contrast to 47.81% held by mutual funds. Shares owned by individuals account for 12.93%. As the largest shareholder in EVH with 8.34% of the stake, The Vanguard Group, Inc. holds 8,440,988 shares worth 8,440,988. A second-largest stockholder of EVH, UMPC Health Plan, Inc., holds 6,434,283 shares, controlling over 6.36% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in EVH, holding 5,499,773 shares or 5.44% stake. With a 2.75% stake in EVH, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,781,234 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.32% of EVH stock, is the second-largest Mutual Fund holder. It holds 2,346,675 shares valued at 65.89 million. CS Invt. Fds. 2 – holds 2.17% of the stake in EVH, owning 2,200,000 shares worth 61.78 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EVH since 9 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 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 $57.00 and a low target of $34.00, the average target price over the next 12 months is $45.25. Based on these targets, EVH could surge 82.75% to reach the target high and rise by 9.01% to reach the target low. Reaching the average price target will result in a growth of 45.08% 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 02/22/2024. Analysts have provided yearly estimates in a range of $1.40 being high and $0.50 being low. For EVH, this leads to a yearly average estimate of $0.86. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Evolent Health Inc. surprised analysts by $0.47 when it reported $0.59 EPS against a consensus estimate of $0.12. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $0.21 and the low estimate is $0.05. 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 4 Buys and 9 Sells. In these transactions, 405,000 shares were bought while 405,000 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 35 over the past year. The total number of shares bought during that period was 1,638,461 while 1,100,489 shares were sold.