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Some EverQuote, Inc. (NASDAQ:EVER) shareholders are probably rather concerned to see the share price fall 35% over the last three months. But that doesn’t change the fact that the returns over the last year have been very strong. Like an eagle, the share price soared 105% in that time. So we think most shareholders won’t be too upset about the recent fall. More important, going forward, is how the business itself is going.
EverQuote wasn’t profitable in the last twelve months, it is unlikely we’ll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year EverQuote saw its revenue grow by 58%. That’s a head and shoulders above most loss-making companies. Meanwhile, the market has paid attention, sending the share price soaring 105% in response. That sort of revenue growth is bound to attract attention, even if the company doesn’t turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
EverQuote boasts a total shareholder return of 105% for the last year. We regret to report that the share price is down 35% over ninety days. Shorter term share price moves often don’t signify much about the business itself. It’s always interesting to track share price performance over the longer term. But to understand EverQuote better, we need to consider many other factors. Take risks, for example – EverQuote has 3 warning signs we think you should be aware of.
EverQuote is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.