NerdWallet (NASDAQ:NRDS) Shares Gap Down After Analyst Downgrade

NerdWallet, Inc. (NASDAQ:NRDS) gapped down before the market opened on Friday after Morgan Stanley downgraded the stock from an equal weight rating to an underweight rating. The stock had previously closed at $10.36, but opened at $9.74. Morgan Stanley now has a $9.00 price target on the stock, down from their previous price target of $14.00. NerdWallet shares last traded at $10.1080, with a volume of 300,498 shares.

A number of other equities analysts also recently commented on the company. Zacks Research downgraded NerdWallet from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Truist Financial cut their target price on shares of NerdWallet from $19.00 to $18.00 and set a “buy” rating on the stock in a research note on Thursday, February 26th. Finally, Oppenheimer reduced their target price on shares of NerdWallet from $18.00 to $15.00 and set an “outperform” rating on the stock in a report on Wednesday, March 4th. Four analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $14.33.

Insider Buying and Selling at NerdWallet

In other news, CAO Nicholas Tatum sold 10,151 shares of the business’s stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $11.45, for a total transaction of $116,228.95. Following the completion of the sale, the chief accounting officer owned 47,202 shares in the company, valued at approximately $540,462.90. The trade was a 17.70% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 46.54% of the company’s stock.

Hedge Funds Weigh In On NerdWallet

Several large investors have recently bought and sold shares of NRDS. Prudential Financial Inc. purchased a new stake in shares of NerdWallet in the 2nd quarter valued at about $1,046,000. Walleye Capital LLC purchased a new position in NerdWallet during the 2nd quarter worth approximately $948,000. Geode Capital Management LLC increased its position in NerdWallet by 9.7% during the second quarter. Geode Capital Management LLC now owns 925,503 shares of the company’s stock worth $10,154,000 after buying an additional 81,986 shares during the period. Intech Investment Management LLC increased its position in NerdWallet by 25.6% during the second quarter. Intech Investment Management LLC now owns 26,416 shares of the company’s stock worth $290,000 after buying an additional 5,378 shares during the period. Finally, Dynamic Technology Lab Private Ltd lifted its stake in NerdWallet by 103.4% in the second quarter. Dynamic Technology Lab Private Ltd now owns 103,667 shares of the company’s stock valued at $1,137,000 after buying an additional 52,695 shares during the last quarter. Institutional investors and hedge funds own 38.81% of the company’s stock.

NerdWallet Stock Down 4.2%

The firm has a market capitalization of $663.22 million, a price-to-earnings ratio of 15.52 and a beta of 1.44. The company has a fifty day moving average price of $11.47 and a two-hundred day moving average price of $12.12.

NerdWallet (NASDAQ:NRDS) last announced its earnings results on Wednesday, February 25th. The company reported $0.19 EPS for the quarter, beating analysts’ consensus estimates of $0.17 by $0.02. NerdWallet had a net margin of 5.82% and a return on equity of 12.66%. The business had revenue of $225.40 million for the quarter, compared to analysts’ expectations of $211.37 million. During the same period in the previous year, the company posted $0.51 EPS. The company’s quarterly revenue was up 22.6% on a year-over-year basis. On average, equities analysts anticipate that NerdWallet, Inc. will post 0.36 earnings per share for the current fiscal year.

NerdWallet declared that its board has initiated a share buyback program on Tuesday, December 16th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

About NerdWallet

NerdWallet (NASDAQ: NRDS) is a personal finance company that offers independent guidance and comparison tools to help consumers make informed financial decisions. Through its website and mobile application, NerdWallet provides a wide range of content, including articles, calculators and reviews covering credit cards, mortgages, personal loans, banking products, investing, insurance and taxes. The platform aggregates partner offers to enable side-by-side comparisons, while editorially maintaining objectivity to support users in identifying the products that best suit their individual needs.

Founded in 2009 by Tim Chen and Jacob Gibson, NerdWallet is headquartered in San Francisco and serves consumers primarily in the United States, with additional localized offerings in Canada and the United Kingdom.