Evolent Health, Inc. (EVH) Traders Turning South Sharply

Evolent Health, Inc. (NYSE:EVH) is now being followed by Leerink Partners, as they initiated the stock at Outperform on October 05. Analysts at Piper Jaffray, started covering the stock on June 04 with a Overweight rating. Analysts at JP Morgan, made their first call about the stock on April 24, recommending it is Neutral. KeyBanc Capital Mkts, released new analyst coverage on September 20, calling the stock is Overweight.

EVH stock dropped -0.38% in recent trade and currently has a stock-market value of $1.05B. The shares finished at $13.01. Trading activity significantly weakened as the volume at ready counter decreased to 1,409,248 shares versus 2,193,840 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,460,810 shares. The stock is now 7.61% above against its bear-market low of $12.09 on March 08, 2019. It has retreated -123.29% since it’s 52-week high of $29.05 reached in September. Now the market price is down -15.79% on the year and down -34.79% YTD.

Evolent Health, Inc. (EVH)’s 50 day simple moving average (SMA 50) price is $16.45 and its 200-day simple moving average (SMA 200) price is $21.57. The company’s stock currently has a total float of 69.35M shares. Its weekly volatility is hovering around 3.88% and felt 6.2% volatility in price over a month. On the upside, the share price will test short term resistance at around $13.21. On a downside, the stock is likely to find some support, which begins at $12.83. The failure to get near-term support could push it to $12.64.

Moreover, it trades for 100.85 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.9x price/book and 1.67x price/sales. Compared to others, Evolent Health, Inc. is in a different league with regards to profitability, having net margins of -8.4%. To put some perspective around this, the industry’s average net margin is -14%. EVH’s ROE is -4.9%, which is also considerably worse than the industry’s ROE of 9.11%. It’s also very liquid in the near term, with a current ratio of 1.8. The stock has a debt/capital of 0.19.

EVH last reported earnings that receded expectations. The company raked in -$0.07 per share, -99.9% change on the same period last year. That was worse than consensus for -$0.04. Revenue for the recent quarter stood at $193.32 million, up 70% on last year and above the $188.74 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $190 million to $197.02 million, which should be compared with $165.84 million generated last year. EPS is seen in a range of -$0.57 to $0.03, against the -$0.01 reported a year ago.