Is it Time to Dispose Your Everbridge (EVBG) Shares?

Alger, an investment management firm, published its “Alger Weatherbie Specialized Growth Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the largest portfolio sector weightings were Information Technology and Health Care. The largest sector overweight was Financials. The portfolio had no exposure to the Consumer Staples or utility sectors and negligible exposure to Communication Services. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Alger Weatherbie Specialized Growth Fund, in its Q4 2021 investor letter, mentioned Everbridge, Inc. (NASDAQ: EVBG) and discussed its stance on the firm. Everbridge, Inc. is a Burlington, Massachusetts-based software company with a $1.8 billion market capitalization. EVBG delivered a -31.23% return since the beginning of the year, while its 12-month returns are down by -65.50%. The stock closed at $46.30 per share on January 26, 2022.

Here is what Alger Weatherbie Specialized Growth Fund has to say about Everbridge, Inc. in its Q4 2021 investor letter:

“Everbridge announced the unexpected resignation of its chief executive officer (CEO) who is becoming the CEO of a large private technology company. His responsibilities will be temporarily covered by Everbridge’s chief financial officer and chief revenue officer while the search for a permanent CEO is underway. Importantly, the company reiterated guidance for the fourth quarter and stated that the resignation is not related to the company’s financial condition, reported financial results or internal controls. Given this risk of business disruption, management offered preliminary guidance for 2022 revenue growth of 20% to 23%, below the consensus expectation of 26%. The stock price reaction was sharply negative in response to this news.”

Photo by Danial Igdery on Unsplash

Our calculations show that Everbridge, Inc. (NASDAQ: EVBG) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. EVBG was in 23 hedge fund portfolios at the end of the third quarter of 2021, compared to 26 funds in the previous quarter. Everbridge, Inc. (NASDAQ: EVBG) delivered a -69.52% return in the past 3 months.

In May 2021, we also shared another hedge fund’s views on EVBG in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.