Summary: As per a recent study, EngageSmart, Inc. (NYSE:ESMT) witnessed a substantial rise in short interest during December. The data shows that as of December 15th, there was a total of 1,920,000 shares with short interest, an increase of 58.7% from the previous month’s total of 1,210,000 shares. Currently, approximately 4.5% of the stock’s shares are being short sold, with a days-to-cover ratio of 1.5. Additionally, the analysis reveals that EngageSmart has been the subject of various research reports, resulting in mixed ratings from Wall Street analysts.
Diverse Ratings Impact EngageSmart’s Market Standing:
EngageSmart has seen a range of ratings from different research reports. A research report by William Blair downgraded the company’s shares from “outperform” to “market perform.” Similarly, Citigroup lowered EngageSmart’s rating from “buy” to “neutral,” while also increasing the target price from $22.00 to $23.00. KeyCorp maintained a “sector weight” rating, and Needham & Company LLC reaffirmed a “hold” rating. Truist Financial downgraded EngageSmart from “buy” to “hold” and decreased the target price from $30.00 to $23.00. Overall, the stock received a consensus rating of “Hold” from nine equities research analysts, with only one analyst giving it a “Buy” rating. The average price target for EngageSmart stands at $24.38.
Insider Activity at EngageSmart:
In recent news, insider Kevin William O’brien sold 3,000 shares of EngageSmart on November 1st, amounting to a total value of $67,980. Following the sale, O’brien’s insider holdings amounted to 26,713 shares, valued at approximately $605,316.58. Furthermore, CAO Patrick F. Donovan sold 32,000 shares of the company’s stock on November 27th, with a total value of $731,200. After the transaction, Donovan holds 4,130 shares worth around $94,370.50. These insider activities were disclosed in filings with the SEC.
Institutional Investments:
Several hedge funds have made changes to their positions in EngageSmart. RiverPark Advisors LLC acquired a new position in the company during the third quarter, with a value of approximately $25,000. Qube Research & Technologies Ltd also purchased a new position in EngageSmart, valuing around $40,000. Hedge fund Quarry LP increased its stake by 82.7%, and Advisors Asset Management Inc. grew its position by 106.7%. Metropolitan Life Insurance Co NY also saw a 43.4% growth in their holdings. Overall, hedge funds and other institutional investors own approximately 92.34% of EngageSmart’s stock.
EngageSmart’s Stock Performance:
EngageSmart’s stock (NYSE:ESMT) closed at $22.90 on Friday, with a total of 467,476 shares exchanged. The stock has fluctuated between $15.45 and $23.10 over the past 52 weeks. EngageSmart has a 50-day simple moving average of $22.80 and a 200-day simple moving average of $19.87. The company’s market capitalization currently stands at $3.85 billion, with a price-to-earnings ratio of 152.67 and a beta of 0.31. EngageSmart announced its quarterly earnings data on November 2nd, reporting earnings per share of $0.04 for the quarter, in line with the consensus estimate. The company generated revenue of $97.73 million, surpassing the consensus estimate of $95.54 million. Analysts expect EngageSmart to post an EPS of 0.22 for the current fiscal year.
About EngageSmart:
EngageSmart, Inc. is a provider of vertically-tailored customer engagement and integrated payments solutions. The company operates through two segments: Enterprise Solutions and SMB Solutions. Its Enterprise Solutions segment offers SaaS solutions for customer-client engagement through electronic billing and digital payments.
In conclusion, EngageSmart has experienced a significant surge in interest from the market, as indicated by the increased short interest. The company’s ratings have been mixed among Wall Street analysts, leading to a consensus rating of “Hold.” Insider activity and institutional investments have also played a role in EngageSmart’s recent developments. The stock’s performance remains steady, with a consistent trading range. EngageSmart’s innovative customer engagement and payment solutions continue to position the company as a key player in the market.