Is this data in right direction? Goosehead Insurance, Inc (NASDAQ: GSHD)

On 09 May 2020, Goosehead Insurance, Inc stock identified change of 94.81% away from 52-week low price and recently located move of -2.49% off 52-week high price. GSHD stock has been recorded 27.92% away from 50 day moving average and 31.90% away from 200 day moving average. Moving closer, we can see that shares have been trading 24.26% off 20-day moving average.

Goosehead Insurance, Inc. (GSHD) recently reported results for the fourth quarter and full year ended December 31, 2019. Starting with the fourth quarter of 2019, the Company will be reporting results under accounting standard ASC 606.  A reconciliation of ASC 605 to ASC 606 reporting are set forth in the tables at the end of the release. The Company is using the modified retrospective approach to applying ASC 606 and accordingly previous period numbers have not been restated to give effect to the application of ASC 606.

Fourth Quarter 2019 Highlights

  • Revenue organically increased 59% from the prior-year period to $23.4M. If stated under ASC 605, revenue would have grown organically 39% in the fourth quarter to $20.4M.
  • Net income attributable to Goosehead Insurance, Inc. of $1.8M or $0.12 per basic share and $0.11 per diluted share.
  • Adjusted EPS* of $0.13 per share includes a $0.06 per share benefit from the application ASC 606. If stated under ASC 605 Adjusted EPS would have been $0.07.
  • Adjusted EBITDA* increased 224% from the previous year to $7.5M, or 32% of revenues. If stated under ASC 605, Adjusted EBITDA would have risen 81% to $4.2M, or 20% of revenues.
  • Total written premiums placed increased 45% from the prior-year period to $196M.
  • Policies in force grew 44% from the prior-year period to 482,000.
  • Corporate sales headcount of 248 was up 49% year-over-year.
  • Total franchises increased 47% contrast to the previous year period to 948; total operating franchises grew 34% contrast to the prior-year period to 614.

Fourth Quarter 2019 Results
For the fourth quarter of 2019, revenues were $23.4M, a 59% increase from $14.7M in the prior-year period. If stated under ASC 605, total revenue would have grown 39% to $20.4M. Core Revenues, which exclude contingent commissions and initial franchise fees, were $17.7M, a 35% increase from $13.1M in the previous year period. If stated under ASC 605, Core Revenues would have grown 36% to $17.8M. Core Revenues refer to the most predictable revenue stream for the Company, consisting of New Business Commissions, Agency Fees, New Business Royalty Fees, Renewal Commissions and Renewal Royalty Fees. Core Revenues were driven by growth in sales agents and productivity improvements, combined with continued high levels of retention. Total written premiums placed, which is a good indicator of future revenue growth, grew 45% in the fourth quarter to $196M, contrast to $135M in the fourth quarter of 2018.

Total operating expenses for the fourth quarter of 2019 were $16.8M, up 28% from $13.2M in the prior-year period, primarily Because of larger employee compensation and benefit expenses related to continued investment in corporate agents and recruiting headcount and the number of operating franchises, investments in technology, as well as higher general and administrative expenses, including public company costs.

Net income for the fourth quarter of 2019 grew 786% to $5.3M, contrast to net income of $0.6M in the prior-year period.  If stated under ASC 605 net income for the fourth quarter of 2019 would have grown 302% to $2.4M. Net income attributable to Goosehead Insurance, Inc. for the fourth quarter of 2019 was $1.8M, or $0.12 per basic and $0.11 per diluted share.  Adjusted EPS for the fourth quarter of 2019, which excludes equity-based compensation, was $0.13 per share. If stated under ASC 605, Adjusted EPS for the fourth quarter of 2019 would have been $0.07 per share.

Total Adjusted EBITDA grew by 224% to $7.5M for the fourth quarter of 2019, contrast to $2.3M in the previous year period. If stated under ASC 605, EBITDA would have grown 81% to $4.2M. Total Adjusted EBITDA Margin was 32%, contrast to 16% in the prior-year period. If stated under ASC 605, Adjusted EBITDA Margin in the fourth quarter of 2019 would have been 20%.

 The Financial sector company, Goosehead Insurance, Inc noticed change of 4.97% to $61.5 along volume of 203066 shares in recent session compared to an average volume of 230.78K. The stock observed return of 7.03% in 5 days trading activity. GSHD’s shares are at 17.37% for the quarter and driving a 92.55% return over the course of the past year and is now at 45.05% since this point in 2018. The average volatility for the week at 6.47% and for month was at 7.28%.

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