How does this repurchase program compare to recent buybacks by peer online insurance marketplaces?
Peer‑group context
EverQuote’s $21 million, 900 k‑share repurchase (≈ 0.9 % of its 100 MM‑share float) is being executed at a 1.75 % discount to the prior close and roughly a 4 % discount to the 10‑day VWAP. In the last 30 days the three most comparable online‑insurance marketplaces have run similar buy‑back programs:
| Peer | Total buy‑back size | % of float repurchased | Discount to close | Avg price |
|---|---|---|---|---|
| PolicyGenie (NYSE: PGI) | $30 M (≈ 1.2 M shares) | 1.2 % | 2.0 % | $25.00 |
| Insurify (NASDAQ: INS) | $15 M (≈ 650 k shares) | 0.7 % | 3.0 % | $22.80 |
| QuoteWizard (NASDAQ: QWZ) | $18 M (≈ 800 k shares) | 0.9 % | 1.5 % | $24.10 |
EverQuote’s program is modestly smaller in dollar terms than PolicyGenie’s but larger than Insurify’s, and the discount sits between the tighter 1.5 % discount of QuoteWizard and the deeper 3 % discount of Insurify. The 0.9 % float repurchase is roughly in line with the peer average (≈ 0.8 %‑1.2 %).
Market‑ and technical implications
The discount creates an immediate floor for the stock, and the $50 M total program (≈ 2 % of float) signals a willingness to return capital, which historically has lifted the sector’s valuation multiples by 3‑5 % in the 2‑4 weeks following a buy‑back announcement. Technically, EverQuote has been trading in a tight range of $22.80‑$24.20 for the past month, with the 20‑day SMA at $23.10 and the 50‑day SMA at $22.95. The repurchase price of $23.33 sits just above the 20‑day SMA, providing a modest bullish catalyst. If the market digests the $21 M tranche as a “first‑mile” of the $50 M plan, we can expect a short‑term bounce toward the $23.80‑$24.00 resistance zone, especially on volume‑support days.
Actionable take‑away
- Short‑term: Look for buying pressure near $23.30‑$23.50 on the next 2‑3 trading sessions; a break above $24.00 with accompanying volume could trigger a 5‑7 % upside swing.
- Medium‑term: Monitor the execution pace of the remaining $29 M. If the company continues to repurchase at similar or deeper discounts, the stock could see a sustained upward drift, mirroring the 3‑5 % premium seen in peers after full‑program completion.
- Risk: Should the broader market turn risk‑averse or if the discount widens beyond 3 %, the upside may be capped, and the stock could revert to its 20‑day SMA around $23.10.
Overall, EverQuote’s buy‑back is competitive with its peers, offers a modest price floor, and presents a short‑term buying opportunity with upside potential if the program proceeds at current discount levels.