Evolent Health Inc. (EVH) expanding its growth trajectory ahead

Evolent Health Inc. (NYSE: EVH) stock fell -3.26% on Wednesday to $30.88 against a previous-day closing price of $31.92. With 0.72 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.94 million shares. During the session, the Health Information Services company that operates in wider Healthcare sector, reached to the highest price of $31.92 whereas the lowest price it dropped to was $30.83. The 52-week range on EVH shows that it touched its highest point at $39.78 and its lowest point at $21.83 during that stretch. It currently has a 1-year price target of $47.25. Beta for the stock currently stands at 1.54.

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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 EVH was down-trending over the past week, with a drop of -9.28%, but this was down by -12.47% over a month. Three-month performance dropped to -11.57% while six-month performance rose 15.27%. The stock gained 4.93% in the past year, while it has gained 9.97% so far this year. A look at the trailing 12-month EPS for EVH yields -0.38 with Next year EPS estimates of 1.06. For the next quarter, that number is 0.13. This implies an EPS growth rate of 43.30% for this year and 85.79% 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 26.70%.

Float and Shares Shorts:

At present, 107.78 million EVH shares are outstanding with a float of 93.07 million shares on hand for trading. On Apr 27, 2023, short shares totaled 5.28 million, which was 4.69% higher than short shares on Mar 30, 2023. 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.

Institutional Ownership:

Through their ownership of 92.94% of EVH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.00% of EVH, in contrast to 49.48% held by mutual funds. Shares owned by individuals account for 12.39%. As the largest shareholder in EVH with 11.73% of the stake, Fidelity Management & Research Co holds 13,024,436 shares worth 13,024,436. A second-largest stockholder of EVH, The Vanguard Group, Inc., holds 9,087,659 shares, controlling over 8.18% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in EVH, holding 5,352,966 shares or 4.82% stake. With a 2.55% stake in EVH, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,833,186 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.15% of EVH stock, is the second-largest Mutual Fund holder. It holds 2,382,577 shares valued at 86.75 million. JPMorgan Funds – Global Healthcar holds 1.75% of the stake in EVH, owning 1,940,640 shares worth 70.66 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, EVH reported revenue of $319.94M and operating income of -$3.83M. The EBITDA in the recently reported quarter was $13.75M and diluted EPS was -$0.05.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EVH since 0 analysts follow the stock currently. 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 $63.00 and a low target of $36.00, the average target price over the next 12 months is $47.56. Based on these targets, EVH could surge 104.02% to reach the target high and rise by 16.58% to reach the target low. Reaching the average price target will result in a growth of 54.02% 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.

Summary of Insider Activity:

Insiders traded EVH stock several times over the past three months with 12 Buys and 21 Sells. In these transactions, 1,242,741 shares were bought while 744,608 shares were sold. The number of buy transactions has increased to 35 while that of sell transactions has risen to 45 over the past year. The total number of shares bought during that period was 2,342,960 while 1,633,981 shares were sold.

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