NerdWallet (NASDAQ:NRDS) Downgraded by Morgan Stanley to “Underweight”

NerdWallet (NASDAQ:NRDS) was downgraded by research analysts at Morgan Stanley from an “equal weight” rating to an “underweight” rating in a research report issued to clients and investors on Friday, Marketbeat.com reports. They presently have a $9.00 target price on the stock, down from their previous target price of $14.00. Morgan Stanley’s price objective would suggest a potential downside of 9.68% from the stock’s previous close.

Several other research firms have also weighed in on NRDS. Zacks Research lowered NerdWallet from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Oppenheimer cut their target price on NerdWallet from $18.00 to $15.00 and set an “outperform” rating on the stock in a research report on Wednesday, March 4th. Finally, Truist Financial lowered their target price on NerdWallet from $19.00 to $18.00 and set a “buy” rating for the company in a report on Thursday, February 26th. Four analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $14.33.

NerdWallet Stock Performance

Shares of NASDAQ:NRDS traded down $0.40 during trading on Friday, reaching $9.97. The stock had a trading volume of 382,801 shares, compared to its average volume of 1,001,560. NerdWallet has a 52 week low of $7.55 and a 52 week high of $16.24. The firm’s fifty day moving average is $11.53 and its 200 day moving average is $12.13. The stock has a market cap of $665.56 million, a price-to-earnings ratio of 15.60 and a beta of 1.44.

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

NerdWallet announced that its board has authorized a stock repurchase plan on Tuesday, December 16th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the company to purchase up to 5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling at NerdWallet

In other news, CAO Nicholas Tatum sold 10,151 shares of the company’s stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $11.45, for a total transaction of $116,228.95. Following the transaction, the chief accounting officer owned 47,202 shares in the company, valued at approximately $540,462.90. This represents a 17.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 46.54% of the company’s stock.

Institutional Trading of NerdWallet

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Covestor Ltd bought a new stake in NerdWallet in the 4th quarter valued at about $34,000. Tower Research Capital LLC TRC boosted its holdings in NerdWallet by 37.1% in the second quarter. Tower Research Capital LLC TRC now owns 3,893 shares of the company’s stock worth $43,000 after acquiring an additional 1,054 shares in the last quarter. Polymer Capital Management US LLC acquired a new stake in NerdWallet in the third quarter valued at approximately $111,000. Moran Wealth Management LLC acquired a new stake in NerdWallet in the fourth quarter valued at approximately $148,000. Finally, Swiss Life Asset Management Ltd bought a new stake in shares of NerdWallet during the fourth quarter valued at approximately $150,000. 38.81% of the stock is owned by institutional investors.

NerdWallet Company Profile

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.