NerdWallet (NASDAQ:NRDS) Trading Down 6.5% on Analyst Downgrade

NerdWallet, Inc. (NASDAQ:NRDS) shares were down 6.5% on Monday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $12.94 and last traded at $12.99. Approximately 79,390 shares traded hands during trading, a decline of 87% from the average daily volume of 620,470 shares. The stock had previously closed at $13.90.

NRDS has been the topic of several other reports. Barclays lifted their price target on NerdWallet from $14.00 to $17.00 and gave the company an “overweight” rating in a research report on Friday, November 7th. Morgan Stanley increased their price target on shares of NerdWallet from $12.00 to $14.00 and gave the stock an “equal weight” rating in a research note on Monday, November 10th. KeyCorp lifted their price target on shares of NerdWallet from $15.00 to $16.00 and gave the company an “overweight” rating in a research report on Friday, November 7th. Truist Financial raised their target price on shares of NerdWallet from $17.00 to $19.00 and gave the company a “buy” rating in a research note on Monday, November 10th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of NerdWallet in a research report on Wednesday, October 8th. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $15.40.

Insider Activity at NerdWallet

In other news, insider Samuel Yount sold 15,945 shares of the business’s stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $16.04, for a total transaction of $255,757.80. Following the completion of the transaction, the insider directly owned 358,116 shares of the company’s stock, valued at $5,744,180.64. The trade was a 4.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders have sold 44,231 shares of company stock valued at $669,277 in the last three months. Insiders own 46.54% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Tudor Investment Corp ET AL bought a new stake in NerdWallet in the 3rd quarter valued at $2,812,000. Arrowstreet Capital Limited Partnership grew its position in shares of NerdWallet by 26.1% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,133,790 shares of the company’s stock valued at $12,200,000 after purchasing an additional 234,691 shares in the last quarter. Millennium Management LLC grew its position in shares of NerdWallet by 23.9% during the first quarter. Millennium Management LLC now owns 867,113 shares of the company’s stock valued at $7,847,000 after purchasing an additional 166,984 shares in the last quarter. UBS Group AG increased its holdings in shares of NerdWallet by 91.9% in the third quarter. UBS Group AG now owns 321,637 shares of the company’s stock worth $3,461,000 after purchasing an additional 154,055 shares during the last quarter. Finally, Kent Lake PR LLC lifted its position in shares of NerdWallet by 115.6% in the second quarter. Kent Lake PR LLC now owns 275,000 shares of the company’s stock worth $3,017,000 after buying an additional 147,466 shares in the last quarter. 38.81% of the stock is currently owned by institutional investors.

NerdWallet Stock Down 1.1%

The business has a 50 day moving average of $14.18 and a 200 day moving average of $11.99. The company has a market capitalization of $940.14 million, a P/E ratio of 13.47 and a beta of 1.43.

NerdWallet (NASDAQ:NRDS) last issued its quarterly earnings data on Thursday, November 6th. The company reported $0.34 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.14. NerdWallet had a net margin of 9.22% and a return on equity of 9.27%. The business had revenue of $215.10 million during the quarter, compared to analysts’ expectations of $193.31 million. NerdWallet’s revenue was up 12.4% compared to the same quarter last year. On average, research analysts anticipate that NerdWallet, Inc. will post 0.36 EPS for the current year.

NerdWallet announced that its board has authorized a stock buyback plan on Tuesday, December 16th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board 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.