Exploring Evolent Health, Inc. (EVH) Investor Profile: Who’s Buying and Why?

You are looking at Evolent Health, Inc. (EVH) and trying to figure out if the smart money still believes in the long-term story, especially with the stock trading around $4.44 per share as of November 2025, down significantly from a year ago. Honestly, the investor profile tells a complex story: institutional investors hold a massive 81.9% of the company, controlling 114,177,447 shares, which shows conviction from major players like Vanguard Group Inc. and BlackRock, Inc.. But what does it mean when the institutional buying volume has totaled approximately $520.48M over the last 24 months, yet the stock price has struggled? You have to ask yourself: are the institutions buying a dip, or are they simply rotating positions in a company that reported a latest quarter revenue of $427.7M, yet still faces market skepticism? The Street's consensus price target of $12.86 suggests a huge upside, but the recent insider buying, like a director purchasing 10,000 shares in November 2025, is a more concrete signal of internal confidence. We need to look past the noise to see who is actually driving the bus, and what their buying patterns tell us about Evolent's path to realizing that $12.86 target.

Who Invests in Evolent Health, Inc. (EVH) and Why?

You're looking at Evolent Health, Inc. (EVH) and trying to figure out which smart money is buying, and more importantly, what their thesis is. The quick takeaway is that Evolent Health is overwhelmingly an institutional play, with major index funds providing a passive floor while a significant cohort of active hedge funds are betting on a high-growth, value-based care turnaround.

The company's ownership structure tells a clear story of a growth-stage healthcare technology firm. As of late 2025, approximately 81.9% of Evolent Health's shares are held by institutions, with hedge funds accounting for another 12.5%. Retail investors and individual insiders hold the remaining small, but not insignificant, portion. That means three out of every four shares are in the hands of professional money managers. It's a stock driven by large block trading, not the day-to-day retail crowd.

Key Investor Types and Their Footprint

The investor base for Evolent Health is a mix of passive giants, active growth managers, and dedicated hedge funds. This blend creates a dynamic tension between long-term stability and short-term performance pressure. Here's the quick math on the top players, based on September 2025 filings:

• Passive Institutional Investors: Firms like The Vanguard Group, Inc. and BlackRock, Inc. are consistently the largest shareholders. Vanguard holds about 10.5% of the company, and BlackRock, Inc. holds around 8.35%. These positions are mostly passive, held through index funds like the iShares Russell 2000 ETF, meaning they buy because Evolent Health is in the index, not because of a specific investment thesis.
• Active Institutional & Mutual Funds: FMR LLC (Fidelity) and William Blair Investment Management, LLC represent the active mutual fund side. They are making a deliberate, long-term bet on the company's growth trajectory in the specialty care market.
• Hedge Funds & VC/PE: Cadian Capital Management, LP, a major hedge fund, is one of the top shareholders with a stake of approximately 10.5%, holding over 11.7 million shares as of September 2025. Durable Capital Master Fund LP and Engaged Capital, LLC are also significant players. Their presence signals a high-conviction, concentrated bet, often with an activist or deep-value slant.

Investment Motivations: Why the Smart Money is Buying

The core motivation for Evolent Health investors is a bet on the successful transition to value-based care (VBC) in specialty markets like oncology, cardiology, and musculoskeletal. Despite the stock price being down significantly in 2025-from about $12.75 to $4.44 per share-investors are focused on the future pipeline and operational efficiency gains. The company is not yet profitable on a GAAP basis, posting a net loss of $26.93 million in Q3 2025, but the growth narrative is compelling.

The major draw is the clear path to scale and profitability through new contracts. Evolent Health announced securing over $500 million in newly-contracted annualized revenue in late 2025, set to launch in 2026, which is a massive indicator of future growth. Plus, the company has reiterated a strong full-year 2025 outlook, projecting revenue in the range of approximately $1.85 billion to $1.88 billion and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $140 million to $165 million. This EBITDA growth shows operational leverage is kicking in, even if net income is still negative. You can read more about their long-term vision here: Mission Statement, Vision, & Core Values of Evolent Health, Inc. (EVH).

Investment Strategies: Growth, Value, and AI Bets

The strategies at play are varied, reflecting the mixed financial picture-high growth potential but current unprofitability. The massive decline in share price in 2025 has turned Evolent Health into a classic 'Growth at a Reasonable Price' (GARP) or deep-value play for some active managers.

• Long-Term Growth Holding: This is the strategy of the index funds and long-only mutual funds. They believe Evolent Health is a necessary infrastructure player in the multi-year shift of the US healthcare system to VBC. They are holding for the long haul, expecting the company to exceed $2.5 billion in revenues by 2026.
• Value/Turnaround Investing: Hedge funds like Cadian Capital Management, LP and Engaged Capital, LLC are likely employing this strategy. They see the stock's low price relative to the projected 2025 Adjusted EBITDA of up to $165 million as deeply undervalued. They are essentially buying a dollar for fifty cents, betting that the new contracts and operational improvements will close the valuation gap.
• Insider Confidence & Momentum: A key signal is the recent insider buying. Several directors and executives, including Brendan Springstubb, purchased shares in November 2025. This is defintely a strong vote of confidence, showing management believes the market has oversold the stock.
• The AI/Automation Play: The company's push into AI-based automation, specifically with its Auth Intelligence solution, is a key driver for tech-focused investors. They see this as a way to dramatically reduce administrative costs and improve margins, which directly supports the path to that $140 million to $165 million adjusted EBITDA target.

What this estimate hides is the execution risk; new contracts are great, but integrating them profitably is the real challenge. Still, the money is clearly flowing in, suggesting a strong belief in the company's ability to execute on its growth pipeline.

Institutional Ownership and Major Shareholders of Evolent Health, Inc. (EVH)

If you're looking at Evolent Health, Inc. (EVH), the first thing to understand is that it's an institutional stock. That means the big money-pension funds, mutual funds, and endowments-controls the vast majority of the shares, so their conviction drives the price action. As of the most recent filings, institutions own a massive 81.9% of the company, holding approximately 114,177,447 shares. That's a huge concentration, which translates to both stability and volatility when those large players decide to move.

Top Institutional Investors and Their Shareholdings

The investor profile for Evolent Health, Inc. is dominated by the usual suspects in the asset management world. These aren't just passive index funds; many of these players are active managers who have done deep diligence on the company's specialty care solutions and value-based care model. The largest shareholders are a mix of passive giants and active hedge funds, indicating a split in investment theses.

Here's a look at the top institutional holders, with data reflecting positions filed in 2025:

Here's the quick math: the top five institutional holders alone control nearly 48.4% of the company's shares. When you see this level of concentration, you know the company's strategy and stock performance are defintely tied to the conviction of a small group of very large investors. You can learn more about the company's core business model and history here: Evolent Health, Inc. (EVH): History, Ownership, Mission, How It Works & Makes Money.

Recent Shifts in Institutional Ownership: Buying the Dip or Trimming Exposure?

The institutional trading activity in 2025 shows a clear divergence in opinion, which is common in a stock that has seen significant price volatility. Some investors are aggressively adding to their positions, betting on the long-term turnaround and the success of Evolent Health, Inc.'s pivot to higher-margin specialty care services. Others are cutting bait, likely due to the near-term revenue headwinds.

For example, recent filings show some funds making massive percentage increases in their stakes, such as Two Sigma Investments LP, which boosted its position by +133.8%. On the other side, you see significant reductions, like Lazard Asset Management LLC, which cut its stake by a dramatic -91.6%. This tells you the market is still trying to figure out the true value of the business model shift.

The net result of this back-and-forth is important. While the stock has seen a significant price decline in 2025, the total institutional share count remains high, suggesting that for every seller, there is a large buyer stepping in. This is a battle between near-term risk and long-term opportunity.

Impact of Institutional Investors on Strategy and Stock Price

These large institutional holders are not passive bystanders; they have a direct and powerful impact on Evolent Health, Inc.'s strategy and stock price. When the institutional ownership is over 80%, a company's management is constantly communicating with these key stakeholders. Their buying provides a floor for the stock, and their selling can trigger a sharp decline.

• Price Volatility: The sheer volume of shares they control means that a coordinated move by even a few large funds can dramatically affect the price. The stock's price action in 2025, which saw a decline from around $12.75 to $4.44 per share as of November 2025, is a direct reflection of institutional sentiment shifting due to market conditions and company performance.
• Strategic Direction: Institutional investors push for capital discipline. For Evolent Health, Inc., this pressure is evident in the company's focus on debt paydown and its strategic divestiture of the value-based primary care business to simplify its model and focus on the higher-growth specialty care segment.
• Confidence Signal: The fact that the company still expects full-year 2025 revenue to be between $1.85 billion and $1.88 billion, with Adjusted EBITDA between $140 million and $165 million, is a key metric these investors are watching. When a major firm like Stephens upgrades the stock to Overweight, it signals that the firm believes the risk/reward is now favorable, which can attract other institutional buyers.

The bottom line is that institutional conviction is the primary driver here. You should track the 13F filings of the largest holders because their actions will dictate the stock's direction far more than any retail investor activity.

Key Investors and Their Impact on Evolent Health, Inc. (EVH)

If you're looking at Evolent Health, Inc. (EVH), the first thing to understand is that institutional money drives this stock. The investor profile is dominated by large asset managers and hedge funds, meaning the stock's movement is often less about retail sentiment and more about big-money portfolio shifts and quarterly performance against guidance.

The institutional ownership percentage is very high, which is typical for a company in the complex healthcare technology and services space. This high concentration of shares in the hands of professional money managers, like BlackRock, Inc. and Vanguard Group Inc, means you have to pay close attention to their buying and selling patterns because their moves can create significant volatility. They are the market.

The Institutional Heavyweights and Their Stakes

The list of top shareholders in Evolent Health, Inc. reads like a who's who of global asset management. These aren't passive investors; they represent billions in capital and demand a clear strategic direction from management.

As of late 2025, the largest institutional holders include Vanguard Group Inc, holding approximately 10.92 million shares, and BlackRock, Inc., with a stake of roughly 9.38 million shares. Cadian Capital Management LP is also a major player, owning around 10.42 million shares. Their collective influence is substantial, often dictating the success of proxy votes or major corporate actions. For a deeper dive into what the company is aiming for, you should look at the Mission Statement, Vision, & Core Values of Evolent Health, Inc. (EVH).

Here's a quick snapshot of the top institutional holders and their approximate share counts in 2025:

Recent Investor Moves: Confidence and Caution

The recent trading activity signals a mixed, but defintely interesting, picture. Insider buying is a strong positive signal you shouldn't ignore.

For example, Director Brendan B Springstubb purchased 10,000 shares on November 18, 2025, for a total value of $38,200.00. This move increased his holding by over 20%, a clear vote of confidence in the company's future, especially following the Q3 2025 earnings release.

On the institutional side, we've seen some large shifts in 2025. Two Sigma Investments LP, a quantitative hedge fund, significantly increased its stake by over 133%, adding hundreds of thousands of shares. Conversely, Lazard Asset Management LLC sharply reduced its position by over 91%, indicating a major strategic exit or rotation out of the stock. These contrasting moves show the market is still debating the near-term risk-reward profile, particularly given the full-year 2025 revenue guidance is between $1.87 billion and $1.88 billion, and adjusted EBITDA is expected to be between $144 million and $154 million.

• Director Springstubb bought 10,000 shares in November 2025.
• Two Sigma Investments LP increased its stake by over 133.8%.
• Lazard Asset Management LLC cut its holding by over 91.6%.

Investor Influence on Strategy and Stock Price

These major investors exert their influence not through public activism, but through constant communication with the management team and by setting market expectations. The stock's reaction to the Q3 2025 earnings is a perfect example of this influence.

When Evolent Health, Inc. announced Q3 2025 revenue of $479.53 million, beating analyst estimates, the stock surged by nearly 15% in a single day, despite an adjusted EPS miss. This tells you that the market, driven by these large investors, is prioritizing the top-line growth and the company's strategic pivot toward specialty care solutions.

The focus is clearly on the strategic divestiture of the primary care business, Evolent Care Partners, for $100 million in late 2025, with the proceeds earmarked for debt reduction. This deleveraging move, which is expected to lower net debt from $910 million to a range of approximately $805 million to $840 million by year-end, is a direct response to investor concerns about the company's leverage ratio, which was around 5.5x at the midpoint of 2025 adjusted EBITDA guidance. When big funds speak, management listens and acts on capital structure.

Next Step: Strategy Team: Prepare a briefing on the top five institutional holders' recent 13F filings to anticipate any further large-scale portfolio adjustments.

Market Impact and Investor Sentiment

You're looking at Evolent Health, Inc. (EVH) and seeing a stock that's fallen hard, down roughly 65.19% year-to-date as of November 2025, but the institutional money is still largely betting on a turnaround. This is the classic conflict: near-term fear versus long-term growth conviction. The consensus among the big players-the mutual funds and hedge funds-is a complicated mix of positive long-term outlook and realism about the immediate risks.

The institutional investor sentiment, which is what moves the market cap of approximately $431.9 million, is best described as cautiously optimistic. They hold a significant stake, with a total of 146,118,773 shares held by 446 institutional owners. You have titans like Vanguard Group Inc., BlackRock, Inc., and Morgan Stanley among the largest holders, which tells you the stock is a core, albeit volatile, holding for major asset managers.

Here's the quick math: the stock is trading near its 52-week low of $3.49, but the average analyst price target is more than double that, suggesting a belief that the current price is defintely oversold.

Recent Market Reactions to Ownership and News

The market's response to Evolent Health, Inc.'s news in late 2025 has been sharp and contradictory. When the company reported Q3 2025 earnings, the stock surged 14.8% because revenue of $479.53 million beat Wall Street estimates. But, the adjusted earnings per share (EPS) of just $0.05 missed the forecast by 54.55%, and the stock dropped 5.51% shortly after, as profitability concerns and high leverage sank in.

A clear signal of strategic focus and capital management was the September 2025 announcement of selling its value-based primary care business, Evolent Care Partners. The stock gained 10.6% on the news, as the initial payment of $100 million was earmarked to pay down the company's total debt of $1.08 billion. This is a concrete action that institutional investors like to see: selling a non-core asset to improve the balance sheet and focus on the core specialty care management business.

Still, the market is nervous about the company's leverage and the potential expiration of Health Insurance Exchange subsidies, which could impact 2026 Adjusted EBITDA. You can read more about the company's foundation and business model at Evolent Health, Inc. (EVH): History, Ownership, Mission, How It Works & Makes Money.

Analyst Perspectives on Key Investor Impact

The analyst community is broadly positive, with a consensus rating of Moderate Buy or Strong Buy from 14 to 16 firms. This optimism is rooted in the company's long-term strategic positioning in the value-based care space, particularly its specialty care management services in oncology and cardiology.

However, the recent price target adjustments in November 2025 reflect the immediate uncertainty. For example, Truist Securities maintained its 'Buy' rating but lowered its price target from $16.00 to $10.00. Canaccord Genuity also reduced its target from $16.00 to $9.00. This isn't a lack of faith in the business model, but a pragmatic adjustment to near-term headwinds and the risk associated with the company's net debt of $910 million.

The average 12-month price target is approximately $12.86, which suggests a massive potential upside of over 200% from the current trading price. The key takeaway for you is that the analysts see a fundamental disconnect between the current stock price and the projected 2025 fiscal year performance, which is guided to be revenue between $1.87 billion-$1.88 billion and Adjusted EBITDA between $144 million-$154 million.

The recent insider buy-Director Brendan B Springstubb purchasing 10,000 shares for $38,200 in November 2025-is a strong, tangible vote of confidence that aligns with the analysts' long-term view.

• Consensus Rating: Moderate Buy (14 Buy, 1 Hold, 1 Sell).
• Average 12-Month Price Target: $12.86.
• Implied Upside: Over 200%.

The major institutional investors are essentially saying: the business is sound, but the stock is cheap because of market-wide fears and company-specific leverage. They're holding for the multi-year growth story.