The stock of TWFG Inc (NASDAQ: TWFG) has decreased by -3.64 when compared to last closing price of 27.78.Despite this, the company has seen a loss of -5.21% in its stock price over the last five trading days. prnewswire.com reported 2024-08-27 that – Total Written Premium increased 20.3% over the prior year period to $393.6 million – – Total Revenue increased 17.4% over the prior year period to $53.3 million – – Organic Revenue Growth Rate* of 13.8% – – Net Income of $6.9 million – – Adjusted Net Income* increased 18.1% over the prior year period to $9.8 million – – Adjusted EBITDA* increased 25.8% over the prior year period to $10.8 million – – Completed Initial Public Offering in July 2024 – THE WOODLANDS, Texas, Aug. 27, 2024 /PRNewswire/ — TWFG, Inc. (“TWFG” or the “Company”) (NASDAQ: TWFG), a high-growth insurance distribution company, today announced results for the second quarter ended June 30, 2024. Second Quarter 2024 Highlights Total Written Premium for the quarter increased 20.3% to $393.6 million, compared to $327.2 million in the same period in the prior year Total revenues for the quarter increased 17.4% to $53.3 million, compared to $45.4 million in the same period in the prior year Organic Revenue Growth Rate* for the quarter was 13.8% Net income for the quarter was $6.9 million, compared to $7.1 million in the same period in the prior year Adjusted Net Income* for the quarter increased 18.1% over the prior year period to $9.8 million, and Adjusted Net Income Margin* for the quarter was 18.4% Adjusted EBITDA* for the quarter increased 25.8% over the prior year period to $10.8 million, and Adjusted EBITDA Margin* for the quarter was 20.2% Cash flow from operating activities for the quarter was $7.4 million, compared to $6.9 million in the same period in the prior year Adjusted Free Cash Flow* for the quarter was $3.7 million, compared to $1.9 million in the same period in the prior year *Organic Revenue Growth Rate, Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Free Cash Flow are non-GAAP measures.
Is It Worth Investing in TWFG Inc (NASDAQ: TWFG) Right Now?
Analysts have mixed views on the stock, with 0 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”
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The public float for TWFG is 11.94M, and currently, short sellers hold a 2.42% ratio of that float. The average trading volume of TWFG on September 20, 2024 was 298.16K shares.
TWFG’s Market Performance
The volatility ratio for the week is 5.97%, and the volatility levels for the past 30 days are at 6.28% for TWFG Inc The simple moving average for the past 20 days is -3.28% for TWFG’s stock, with a 4.30% simple moving average for the past 200 days.
Analysts’ Opinion of TWFG
UBS, on the other hand, stated in their research note that they expect to see TWFG reach a price target of $29. The rating they have provided for TWFG stocks is “Buy” according to the report published on August 12th, 2024.
RBC Capital Mkts gave a rating of “Outperform” to TWFG, setting the target price at $29 in the report published on August 12th of the current year.
TWFG Trading at 4.30% from the 50-Day Moving Average
After a stumble in the market that brought TWFG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -16.11% of loss for the given period.
Volatility was left at 6.28%, however, over the last 30 days, the volatility rate increased by 5.97%, as shares surge +4.94% for the moving average over the last 20 days.
During the last 5 trading sessions, TWFG fell by -5.21%, in comparison to the 20-day moving average, which settled at $27.74. In addition, TWFG Inc saw 21.63% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at TWFG starting from Bunch Richard F. III, who purchase 185,426 shares at the price of $17.00 back on Jul 19 ’24. After this action, Bunch Richard F. III now owns 678,375 shares of TWFG Inc, valued at $3,152,242 using the latest closing price.
Bunch Richard F. III, the President and CEO of TWFG Inc, purchase 17,550 shares at $17.00 during a trade that took place back on Jul 19 ’24, which means that Bunch Richard F. III is holding 695,925 shares at $298,350 based on the most recent closing price.
Stock Fundamentals for TWFG
Current profitability levels for the company are sitting at:
- 0.16 for the present operating margin
- 0.25 for the gross margin
The net margin for TWFG Inc stands at 0.14. The total capital return value is set at 0.13.
Based on TWFG Inc (TWFG), the company’s capital structure generated 0.43 points at debt to capital in total, while cash flow to debt ratio is standing at 0.34. The debt to equity ratio resting at 0.75. The interest coverage ratio of the stock is 17.49.
Currently, EBITDA for the company is 24.2 million with net debt to EBITDA at 1.32. When we switch over and look at the enterprise to sales, we see a ratio of 4.38. The receivables turnover for the company is 3.0for trailing twelve months and the total asset turnover is 0.61.
Conclusion
To put it simply, TWFG Inc (TWFG) has had a mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
