$Porch Group, Inc.(PRCH)$ ๐บ๐ ฑ๏ธ๐๐ ป๐ ป๐ ธ๐๐ ท
๐ฏ $4
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Analyst Ratings:
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๐ก Hold: 34
๐ด Sell: 8
Source: Stock Titan
Porch Group Announces Reciprocal Exchange Regulatory Approval, A Key Milestone
Porch Group (NASDAQ: PRCH) has received approval from the Texas Department of Insurance to form Porch Insurance Reciprocal Exchange (PIRE), a new homeowners insurance reciprocal exchange. This strategic move aims to increase profitability and stabilize earnings by reducing exposure to claims and weather risks. Porch will contribute $10 million to capitalize PIRE and plans to sell Homeowners of America Insurance Company (HOAIC) to PIRE around January 2025. As the operator, Porch will earn approximately 20% of Gross Written Premium in commissions and fees. HOAIC is expected to maintain its 'A' financial stability rating, with no impact on Porch's 2024 financials.
Positive
* Approval received for new insurance reciprocal exchange formation
* Expected 20% take rate on Gross Written Premium through commissions and fees
* HOAIC maintaining 'A' financial stability rating from Demotech
* Reduced exposure to claims and weather risks
Negative
* $10 million cash contribution required for PIRE capitalization
* Divestment of HOAIC insurance business to PIRE
Insights
Insurance Industry Analyst positive
10/28/2024 - 08:30 AM
SEATTLE--(BUSINESS WIRE)-- Porch Group, Inc. (โPorchโ or โthe Companyโ) (NASDAQ: PRCH), a homeowners insurance and vertical software platform, today announced the Texas Department of Insurance (โTDIโ) has approved its application to form and license Porch Insurance Reciprocal Exchange, a new homeowners insurance reciprocal exchange (โthe Reciprocalโ or โPIREโ).
Happy trading ahead. Cheers, BC ๐
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Porch Group, Inc. (PRCH) Stock Analysis
Company Overview: Porch Group, Inc. is a homeowners insurance and vertical software platform company.
Earnings Analysis:
Forecasted EPS: In 2024FY, the forecasted EPS is -0.99 USD, in 2025FY it is -0.77 USD, and in 2026FY it is -0.60 USD.
Forecasted Gross Income: In 2024FY, the forecasted gross income is 458.42 million USD, in 2025FY it is 483.91 million USD, and in 2026FY it is 565.35 million USD.
Forecasted EBIT: In 2024FY, the forecasted EBIT is -88.32 million USD, in 2025FY it is -39.58 million USD, and in 2026FY it is -28.80 million USD.
Analyst Recommendations: Among the analysts, 2 recommend, 3 buy, and 2 hold the stock.
Target Price: The mean target price estimated by 7 analysts is 3.85714 USD, with a low target of 1.5 USD and a high target of 7.0 USD.
Capital Flow Data:
5-day capital flow data: On 10-21, the capital flow was -0.13 million USD, on 10-22 it was -17.0 million USD, on 10-23 it was -79.4 million USD, on 10-24 it was 65.54 million USD, and on 10-25 it was -29.23 million USD.
1-day capital flow data: On the latest day, the total inflow was 20.1019 million USD, and the total outflow was 20.8575 million USD.
Resistance and Support Price: The resistance price as of 2024-10-28 is 2.19 USD, and the support price is 1.46 USD.
Average Cost: The average cost as of 2024-10-28 is 1.9 USD.
Profiteer Ratio: The profiteer ratio on 2024-10-28 is 0.7924.
Latest Stock Price: The latest stock price for Porch Group, Inc. is 2.18 USD.
Earnings Result: In 2024Q2, the EPS for Porch Group, Inc. was -0.65. Other financial ratios for this quarter include gross profit margin (17.32%), quick ratio (0.67), current ratio (0.99), total asset turnover (0.50), return on investment (-37.21%), fixed asset turnover (24.05), accounts receivable turnover ratio (20.99), net assets per share (-1.02), and total liabilities to total assets ratio (130.43%).
Important Notes: This analysis is for informational purposes only and should not be considered as investment advice. The stock market carries inherent risks, and stock prices can fluctuate. Investors should conduct independent research and consider their own risk tolerance before making any investment decisions.
Please let me know if there is anything else I can help you with!Porch Group, Inc. (PRCH) Analysis:
Porch Group, Inc. is a homeowners insurance and vertical software platform.
The Texas Department of Insurance has approved Porch Group's application to form and license Porch Insurance Reciprocal Exchange (PIRE), a new homeowners insurance reciprocal exchange. This move is seen as a key step in increasing profitability and stabilizing earnings by reducing direct exposure to claims and weather risks.
Porch Group will contribute $10 million cash in exchange for a surplus note to capitalize PIRE. On or around January 1, 2025, Porch will sell Homeowners of America Insurance Co. (HOAIC) to PIRE, including all its policies, premium, assets, and liabilities. Porch will earn approximately 20% of Gross Written Premium in commissions and fees as the operator of the reciprocal.
Analysts have a mixed recommendation on the stock: 3 buy and 2 hold.
The average target price among analysts is $3.86, with a low of $1.50 and a high of $7.00.
The stock has a support price of $1.46 and a resistance price of $2.19.
The latest earnings forecast for Porch Group shows negative earnings per share (EPS) for the years 2024, 2025, and 2026. However, the forecast also predicts an increase in gross income in these years.
Recent capital flow data shows both inflows and outflows over a 5-day period, indicating some volatility in investor sentiment.
The latest available financial data for the company shows a negative net profit margin and a negative return on investment.
Recent News Viewpoints:
Porch Group received approval from the Texas Department of Insurance for the formation and licensing of Porch Insurance Reciprocal Exchange, leading to a jump in the stock price. (source)
Porch Group announced that it will sell Homeowners of America Insurance Company to the reciprocal exchange and will contribute $10 million in cash for PIRE's capitalization. Shares of the company were up over 15% in recent pre-market activity. (source)
Porch Group plans to release its third-quarter 2024 earnings on November 7, 2024, and will host an Investor Day in early December. (source)
Please note that the above information is for reference purposes only and should not be considered as investment advice. Investing in stocks involves risks, and it's important to conduct thorough research and analysis before making any investment decisions.
Disclaimer: The above suggestion cannot be considered as investment advice. The information provided is for reference purposes only and does not guarantee any specific financial outcome. Investors should be aware of the inherent risks in the stock market and the normal fluctuations in stock prices. It is recommended to consult with a qualified financial advisor before making any investment decisions.
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