David Blundin, a director and major owner of EverQuote (EVER) recently added 55,239 shares. The buy increased his holdings by just over 1.5 percent, and came to a total price of $812,000.
This is the fourth time the director has been a buyer of shares since the start of 2022, with additional purchases of over 150,000 shares totaling nearly $2 million. Going further back, insiders have been more likely to be sellers of shares.
Overall, insiders at the company own nearly 24 percent of shares.
The stock has been in a downtrend for the past year, with shares off over 62 percent. However, revenue has been growing, and the online marketplace for insurance shopping is near profitability with only a slight loss in the most recent quarter.
Action to take: Shares look set to potentially rebound from here. The company is providing a disruptive service for the insurance industry, and should trade at a higher valuation in time. As an early-stage company, investors are unlikely to see a dividend anytime soon.
For traders, the June $17.50 calls, last going for about $1.95, offer a leveraged upside to a reversal in shares in the next few months. However, traders may want to first wait for a technical confirmation that the long-term downtrend in shares is over.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.