Evolv Technologies (NASDAQ: EVLV) reported its quarterly earnings on October 19, 2023, revealing better-than-expected results. The company recorded earnings per share (EPS) of ($0.01), surpassing the consensus estimate of ($0.07) by $0.06. Despite a negative net margin of 43.76% and a negative return on equity of 54.09%, Evolv’s revenue for the quarter reached $42.85 million, significantly exceeding the forecast of $33.73 million.
In light of these results, Evolv Technologies updated its guidance for fiscal year 2025.
Stock Performance and Market Activity
Following the earnings announcement, Evolv Technologies’ stock experienced a decline of $0.58 during midday trading on October 20, settling at $6.00. The trading volume surged to 7,535,532 shares, far above the average volume of 2,377,491. Over the past year, the stock has fluctuated between a low of $2.49 and a high of $8.91. Evolv Technologies currently boasts a market capitalization of $1.03 billion, a price-to-earnings ratio of -16.22, and a beta of 1.70.
Analysts have varied opinions on the stock, with some recent upgrades and downgrades shaping the outlook. For instance, Lake Street Capital raised its price target from $9.00 to $10.00 and assigned a “buy” rating in a note released on October 20. Conversely, Weiss Ratings maintained a “sell (d-)” rating on October 8. Cantor Fitzgerald also increased its target price from $7.00 to $9.00, designating the stock as “overweight” on August 15. Currently, one analyst rates the stock as a Strong Buy, four as Buy, one as Hold, and one as Sell, resulting in an average rating of “Moderate Buy” with a price target of $9.13 according to MarketBeat.com.
Insider Transactions and Institutional Investments
Recent insider activity highlights significant transactions within Evolv Technologies. On October 15, Director Michael Ellenbogen sold 80,745 shares at an average price of $8.26, totaling approximately $666,953.70. Following this sale, Ellenbogen retained 2,083,961 shares, valued at around $17.21 million, reflecting a 3.73% decrease in his holdings.
Additionally, major shareholder Gates Frontier, LLC sold 776,236 shares on September 11 at an average price of $8.20, bringing in approximately $6.37 million. After this transaction, Gates Frontier holds 17,189,096 shares, valued at about $140.95 million, which is a 4.32% reduction in their ownership. Over the past quarter, corporate insiders sold a total of 1,911,445 shares for approximately $15.56 million. Currently, insiders own 11.30% of the company’s stock.
Institutional investors have also shown active interest in Evolv Technologies. For example, CW Advisors LLC increased its stake by 19.0% during the second quarter, now holding 12,614 shares valued at $79,000. Victory Capital Management Inc. boosted its position by 16.5% in the third quarter, owning 15,601 shares worth $118,000. BNP Paribas Financial Markets grew its holdings by 38.3% in the same period, owning 12,985 shares valued at $81,000.
Overall, institutional investors now control 66.65% of Evolv Technologies’ stock, indicating robust backing from larger financial entities.
Evolv Technologies Holdings, Inc. specializes in artificial intelligence (AI)-based weapon detection systems for security screening, both in the United States and internationally. Its flagship product, Evolv Express, is a contactless security screening solution designed to identify firearms, improvised explosive devices, and other tactical weapons. The company also offers Evolv Insights, which provides insights into visitor flow, performance metrics, and alarm statistics.
As Evolv Technologies continues to navigate market dynamics and enhance its product offerings, stakeholders will be keen to monitor its financial performance and strategic developments in the coming quarters.
