What Happened?
Shares of online insurance comparison site EverQuote (NASDAQ: EVER) fell 4.2% in the morning session after Raymond James downgraded the stock from Strong Buy to Outperform and cut its price target.
The investment firm lowered its price target on the shares to $30 from $35. The downgrade came as the firm noted an expectation for revenue growth to slow down year-over-year in the third quarter of 2025 and beyond. This view held even with continued strong ad spending from personal auto insurance carriers.
Analysts at the firm projected that revenue growth could slow to a high single-digit rate by fiscal year 2027, falling below the company's own targets. They also expected the rate of adjusted EBITDA margin expansion to slow after fiscal year 2025.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy EverQuote? Access our full analysis report here, it’s free.
What Is The Market Telling Us
EverQuote’s shares are very volatile and have had 26 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 about 1 month ago when the stock gained 3.7% on the news that Federal Reserve Chair Jerome Powell signaled a potential for future interest rate cuts.
The broader market surged after Federal Reserve Chair Jerome Powell, speaking at the Jackson Hole Economic Policy Symposium, indicated a willingness to consider interest rate cuts. This signal of a potentially looser monetary policy was met with enthusiasm by investors, breaking a five-day losing streak for major indices. The Dow Jones Industrial Average, S&P 500, and Nasdaq all posted significant gains as the prospect of lower borrowing costs boosted sentiment across various sectors. EverQuote's rise appears to be in line with this widespread positive market reaction rather than specific company news.
EverQuote is up 21.9% since the beginning of the year, but at $24.68 per share, it is still trading 16.9% 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 $586.78.
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