Coupang (NYSE:CPNG) Shares Gap Down After Earnings Miss

Coupang, Inc. (NYSE:CPNG)’s share price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $23.65, but opened at $22.09. Coupang shares last traded at $21.55, with a volume of 10,822,636 shares changing hands.

The company reported $0.05 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.01). Coupang had a net margin of 5.57% and a return on equity of 15.04%. The business had revenue of $7.11 billion for the quarter, compared to the consensus estimate of $6.95 billion. During the same period in the previous year, the firm earned $0.05 EPS. The company’s revenue was up 22.6% compared to the same quarter last year.

Analyst Ratings Changes

A number of equities analysts have recently commented on CPNG shares. Deutsche Bank Aktiengesellschaft upgraded shares of Coupang from a “hold” rating to a “buy” rating and raised their price objective for the company from $18.50 to $21.00 in a research report on Thursday, February 29th. Bank of America started coverage on shares of Coupang in a report on Friday, May 3rd. They issued a “buy” rating and a $30.00 price target for the company. Citigroup boosted their price target on shares of Coupang from $26.00 to $28.00 and gave the company a “buy” rating in a research report on Wednesday. Mizuho increased their price objective on Coupang from $20.00 to $23.00 and gave the stock a “neutral” rating in a research report on Wednesday. Finally, Barclays boosted their target price on Coupang from $24.00 to $25.00 and gave the stock an “overweight” rating in a research report on Thursday, February 29th. Two investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $24.25.

Insider Transactions at Coupang

In other news, insider Pranam Kolari sold 2,048 shares of the firm’s stock in a transaction dated Thursday, May 2nd. The stock was sold at an average price of $22.34, for a total transaction of $45,752.32. Following the transaction, the insider now directly owns 187,951 shares of the company’s stock, valued at $4,198,825.34. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, insider Pranam Kolari sold 2,048 shares of the stock in a transaction that occurred on Thursday, May 2nd. The stock was sold at an average price of $22.34, for a total transaction of $45,752.32. Following the completion of the sale, the insider now owns 187,951 shares of the company’s stock, valued at $4,198,825.34. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, major shareholder Svf Investments (Uk) Ltd sold 31,614,154 shares of the firm’s stock in a transaction that occurred on Tuesday, March 12th. The stock was sold at an average price of $19.01, for a total transaction of $600,985,067.54. Following the completion of the transaction, the insider now owns 364,542,259 shares in the company, valued at approximately $6,929,948,343.59. The disclosure for this sale can be found here. In the last ninety days, insiders sold 33,355,282 shares of company stock worth $633,457,030. 14.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Coupang

Several hedge funds and other institutional investors have recently modified their holdings of CPNG. Baillie Gifford & Co. boosted its holdings in Coupang by 15.9% in the first quarter. Baillie Gifford & Co. now owns 168,600,998 shares of the company’s stock valued at $2,999,412,000 after acquiring an additional 23,076,870 shares in the last quarter. WCM Investment Management LLC increased its position in shares of Coupang by 2,250.9% during the first quarter. WCM Investment Management LLC now owns 44,926,485 shares of the company’s stock valued at $799,242,000 after buying an additional 43,015,433 shares during the period. FMR LLC raised its stake in Coupang by 2.0% in the third quarter. FMR LLC now owns 19,836,006 shares of the company’s stock worth $337,212,000 after buying an additional 381,964 shares in the last quarter. Norges Bank bought a new position in Coupang in the fourth quarter worth about $250,714,000. Finally, Sands Capital Management LLC lifted its holdings in Coupang by 0.7% in the fourth quarter. Sands Capital Management LLC now owns 14,440,552 shares of the company’s stock worth $233,793,000 after buying an additional 98,043 shares during the period. 83.72% of the stock is owned by institutional investors.

Coupang Stock Performance

The company has a 50-day simple moving average of $19.91 and a two-hundred day simple moving average of $17.24. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.90 and a current ratio of 1.14. The firm has a market capitalization of $38.50 billion, a P/E ratio of 28.71, a PEG ratio of 19.21 and a beta of 1.13.

About Coupang

Coupang, Inc, together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services.