Evolent Health Stock: Massive Insider Buying Amid 70% Decline

Several Evolent Health directors and executives have recently purchased substantial amounts of company stock as prices hover near 52-week lows. CEO Seth Blackley invested approximately $497,577 in 55,225 shares at $9.01 per share, while director Kim Keck acquired 10,540 shares for about $99,497 at $9.44 each. Board member Craig Barbarosh purchased 2,000 shares at $8.81, investing around $17,620. Additional directors making significant purchases include Peter Grua (11,040 shares), Brendan Springstubb (15,000 shares), and Russell Glass (5,400 shares). These insider transactions come as Evolent's stock has plummeted more than 70% over the past six months, trading near its 52-week low of $8.35, far below its high of $34.84. Market observers interpret these purchases as a strong vote of confidence from leadership in the company's future prospects despite recent market challenges.

Analysts Remain Optimistic Despite Disappointing Results

Evolent Health's fourth quarter performance fell short of analyst expectations, with an adjusted earnings per share of -$0.02 compared to projected $0.07. Revenue reached $646.5 million, slightly below forecasts but still representing a 16.3% year-over-year increase. While annual revenue for 2024 grew by 30.1% to $2.55 billion, the company's 2025 revenue guidance of $2.06-2.11 billion significantly trails analyst projections of $2.42 billion. Nevertheless, financial institutions like Piper Sandler and Citizens JMP maintain positive ratings while adjusting price targets. Analysts highlight recently signed contract amendments expected to improve net income and adjusted EBITDA by $115 million in 2025.