What Happened:
Shares of critical event management software company Everbridge (NASDAQ:EVBG) fell 6.82% in the after-market session after Florida terminated its contract with the company after a false “Emergency Alert” test was mistakenly sent out to smartphones at 4:45 a.m. Following the news, Stephens analyst downgraded the stock's rating from Overweight (Buy) to Equal-Weight (Hold).
What is the market telling us:
Everbridge's shares are somewhat volatile and over the last year have had 61 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Everbridge is down 4.05% since the beginning of the year, and at $27.37 per share it is trading 42% below its 52-week high of $47.18 from April 2022. Investors who bought $1,000 worth of Everbridge's shares 5 years ago would now be looking at an investment worth $734.90.
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