What Happened?
Shares of online insurance comparison site EverQuote (NASDAQ: EVER) jumped 3.3% in the pre-market session after it announced the repurchase of $21 million of its shares from entities affiliated with its Chairman and Co-Founder, David Blundin. The transaction involved 900,000 shares purchased at $23.33 each, representing a discount to both the recent closing price and the 10-day average price. This repurchase is a significant execution of a previously announced $50 million share buyback program, utilizing 42% of the total authorization. By reducing the total number of outstanding shares by approximately 2.5%, the move is expected to be accretive, boosting key financial metrics like earnings per share. EverQuote's CFO, Joseph Sanborn, noted the transaction was an "accretive use of capital." This action follows a recent second-quarter report where the company announced strong results and its confidence in its financial trajectory.
After the initial pop the shares cooled down to $23.54, down 1% from previous close.
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What Is The Market Telling Us
EverQuote’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 4.8% on the news that analysts at Needham & Company reiterated a "buy" rating on the stock following the company's second-quarter earnings report. The investment firm gave the stock a $38.00 price target. This vote of confidence came after EverQuote reported strong second-quarter results that included record net income. The company also surpassed earnings per share estimates. In a further sign of strength, the board of directors authorized a $50 million share repurchase program.
EverQuote is up 16.2% since the beginning of the year, but at $23.54 per share, it is still trading 20.8% below its 52-week high of $29.71 from March 2025. Investors who bought $1,000 worth of EverQuote’s shares 5 years ago would now be looking at an investment worth $635.74.
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