Envestnet Stock Discussion

Despite a reported loss, the company's net income and revenue grew. Challenges faced include a struggling stock price, layoffs, and the CEO's impending departure.

The company's revenue growth is unimpressive due to its lack of profitability. Accelerated revenue growth may boost share price, but profitability is key. Despite a recent rise, long-term performance disappoints with a yearly loss of 1.5% over five years.

The departure of CEO Bill Crager, a co-founder of Envestnet, could potentially impact the company's future direction and performance. The company's recent struggles, including a declining stock price and criticism from an activist investor, suggest potential challenges ahead.

Insiders at Envestnet have recently sold more stock than they purchased, potentially concerning for investors. However, insider ownership suggests alignment with the company's long-term growth.

William Blair analyst rates the stock outperform amid strong organic growth, while JPMorgan analyst maintains a neutral view, seeing accelerated revenue growth a necessity for positive stock sentiment. Yet, 25% Ebitda margin target by 2025 seems unclear due to macro uncertainties and recent significant stock pullback.

Investors are frustrated with Envestnet's performance despite a respectable growth rate. Insiders buying stocks hint at a positive outlook, but the declining trend demands a careful scrutiny of the company's financial strength and growth trends.

Rich Aneser, CSO at Envestnet, advocates Connellan’s appointment, citing his deep understanding of ACE and track record in business results. They see these changes as a growth opportunity for ACE.