Porch Group (NASDAQ:PRCH) Shares Gap Down on Disappointing Earnings

Shares of Porch Group, Inc. (NASDAQ:PRCH) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $15.96, but opened at $11.67. Porch Group shares last traded at $10.5460, with a volume of 4,069,676 shares.

The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.02). Porch Group had a negative return on equity of 41.71% and a net margin of 12.82%.The company had revenue of $118.08 million for the quarter, compared to the consensus estimate of $114.42 million. Porch Group has set its FY 2025 guidance at EPS.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Benchmark reiterated a “buy” rating on shares of Porch Group in a report on Thursday, October 30th. Oppenheimer restated an “outperform” rating and set a $25.00 price objective (up previously from $17.00) on shares of Porch Group in a report on Monday, September 22nd. The Goldman Sachs Group began coverage on Porch Group in a report on Tuesday, September 2nd. They set a “buy” rating and a $21.00 price objective for the company. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $20.00 target price on shares of Porch Group in a research report on Tuesday, September 2nd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Porch Group in a research note on Wednesday, October 8th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $16.56.

Insiders Place Their Bets

In other news, Director Regi Vengalil sold 40,000 shares of the stock in a transaction dated Friday, September 5th. The stock was sold at an average price of $18.20, for a total transaction of $728,000.00. Following the transaction, the director directly owned 165,903 shares in the company, valued at approximately $3,019,434.60. This represents a 19.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Amanda L. Reierson sold 50,000 shares of the stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $17.67, for a total value of $883,500.00. Following the transaction, the director owned 151,375 shares in the company, valued at $2,674,796.25. This trade represents a 24.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 145,000 shares of company stock worth $2,639,450 in the last ninety days. 23.32% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Porch Group

Several institutional investors have recently modified their holdings of PRCH. Bank of New York Mellon Corp increased its position in shares of Porch Group by 3.0% during the 1st quarter. Bank of New York Mellon Corp now owns 329,379 shares of the company’s stock valued at $2,401,000 after purchasing an additional 9,670 shares during the last quarter. CWM LLC increased its position in shares of Porch Group by 112.2% during the 1st quarter. CWM LLC now owns 8,732 shares of the company’s stock valued at $64,000 after purchasing an additional 4,617 shares during the last quarter. Zweig DiMenna Associates LLC bought a new position in shares of Porch Group during the 1st quarter valued at about $1,604,000. Bryce Point Capital LLC bought a new position in shares of Porch Group during the 1st quarter valued at about $317,000. Finally, Vanguard Group Inc. increased its position in shares of Porch Group by 5.7% during the 1st quarter. Vanguard Group Inc. now owns 5,823,961 shares of the company’s stock valued at $42,457,000 after purchasing an additional 312,370 shares during the last quarter. 48.48% of the stock is currently owned by institutional investors.

Porch Group Trading Down 34.8%

The company has a market capitalization of $1.28 billion, a PE ratio of 20.41 and a beta of 2.84. The firm has a fifty day moving average of $16.71 and a two-hundred day moving average of $13.27.

Porch Group Company Profile

Porch Group, Inc, together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services.