Porch Group (NASDAQ:PRCH) Stock Falls 7.3% – Here’s Why

Porch Group, Inc. (NASDAQ:PRCH) was down 7.3% on Wednesday. The stock traded as low as $16.42 and last traded at $16.3680. Approximately 1,427,639 shares traded hands during trading, a decline of 16% from the average session volume of 1,704,888 shares. The stock had previously closed at $17.66.

Analyst Ratings Changes

PRCH has been the subject of several research reports. Texas Capital raised shares of Porch Group to a “strong-buy” rating in a research report on Tuesday, September 22nd. Benchmark upped their target price on shares of Porch Group from $22.00 to $23.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. B. Riley Financial raised their price target on shares of Porch Group from $21.00 to $24.00 and gave the company a “buy” rating in a research report on Wednesday, October 14th. Craig Hallum lifted their price target on Porch Group from $20.00 to $22.00 and gave the company a “buy” rating in a research note on Wednesday, October 14th. Finally, Keefe, Bruyette & Woods boosted their price objective on Porch Group from $16.25 to $16.50 and gave the stock a “market perform” rating in a report on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, Porch Group presently has a consensus rating of “Buy” and a consensus price target of $19.64.

Porch Group Stock Performance

The company has a debt-to-equity ratio of 20.53, a current ratio of 1.45 and a quick ratio of 1.45. The firm has a market capitalization of $2.16 billion, a PE ratio of -136.77 and a beta of 3.18. The company’s fifty day simple moving average is $17.09 and its 200 day simple moving average is $11.88.

Porch Group (NASDAQ:PRCH) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.05 earnings per share for the quarter, beating the consensus estimate of ($0.03) by $0.08. The company had revenue of $131.81 million during the quarter, compared to analysts’ expectations of $122.30 million. Porch Group had a negative return on equity of 68.47% and a negative net margin of 2.67%. As a group, equities research analysts expect that Porch Group, Inc. will post -0.04 EPS for the current fiscal year.

Insider Activity at Porch Group

In related news, COO Matthew Neagle sold 31,250 shares of the company’s stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $18.01, for a total value of $562,812.50. Following the completion of the transaction, the chief operating officer directly owned 1,793,006 shares in the company, valued at approximately $32,292,038.06. The trade was a 1.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Shawn Tabak sold 6,690 shares of the company’s stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $17.35, for a total value of $116,071.50. Following the completion of the transaction, the chief financial officer owned 206,059 shares of the company’s stock, valued at $3,575,123.65. The trade was a 3.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 327,270 shares of company stock valued at $5,577,906. Company insiders own 27.78% of the company’s stock.

Institutional Investors Weigh In On Porch Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Granahan Investment Management LLC increased its stake in shares of Porch Group by 9.4% during the first quarter. Granahan Investment Management LLC now owns 12,674,987 shares of the company’s stock valued at $90,880,000 after buying an additional 1,084,559 shares during the period. BlackRock Inc. purchased a new stake in Porch Group in the second quarter worth $128,995,000. GC Wealth Management RIA LLC purchased a new stake in Porch Group in the first quarter worth $29,230,000. Park West Asset Management LLC bought a new stake in Porch Group in the second quarter valued at $53,194,000. Finally, Dimensional Fund Advisors LP boosted its holdings in Porch Group by 42.0% in the first quarter. Dimensional Fund Advisors LP now owns 1,540,082 shares of the company’s stock valued at $11,040,000 after acquiring an additional 455,817 shares in the last quarter. 48.48% of the stock is currently owned by institutional investors.

Porch Group Company Profile

Porch Group, Inc is a technology company that provides software and services for the residential home services industry. Its platform is designed to help businesses manage customer relationships, scheduling, communications, payments, marketing and other operational workflows.

The company serves professionals involved in the home-buying and home-maintenance ecosystem, including home inspection companies and other service providers. Its offerings have included specialized software platforms such as Inspection Support Network and Floify, which support inspection management and mortgage-related workflows, respectively.

Founded in 2012 by Matt Ehrlichman, Porch initially operated as a consumer-focused home improvement marketplace before expanding into vertical software and related services.