NerdWallet (NASDAQ:NRDS) Share Price Breaks Below 200-Day Moving Average Following Weak Earnings

NerdWallet, Inc. (NASDAQ:NRDS)’s stock price crossed below its 200-day moving average during trading on Friday following a dissappointing earnings announcement. The stock has a 200-day moving average of $9.80 and traded as low as $7.74. NerdWallet shares last traded at $7.89, with a volume of 3,076,822 shares changing hands.

The company reported $0.23 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.11). The business had revenue of $239.60 million for the quarter, compared to analyst estimates of $251.86 million. NerdWallet had a net margin of 7.56% and a return on equity of 18.07%. The firm’s revenue was up 11.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.34 earnings per share.

NerdWallet News Summary

Here are the key news stories impacting NerdWallet this week:

• Positive Sentiment: Truist maintained a Buy rating and sees potential upside from its current level, although it cut its price target to $12 from $15. Truist analyst information
• Negative Sentiment: Fourth-quarter revenue guidance of $191 million–$203 million came in well below the roughly $241 million analyst consensus, signaling a weaker near-term outlook. NerdWallet third-quarter results
• Negative Sentiment: Third-quarter adjusted earnings of $0.23 per share and revenue of $239.6 million missed consensus estimates of $0.34 and $251.9 million, respectively. Earnings also declined from $0.34 per share a year earlier. NerdWallet misses third-quarter estimates
• Negative Sentiment: Costs rose about 22%, nearly twice the 12% growth in consumer revenue, fueling concerns that expense growth is eroding the benefit of sales gains. Why NerdWallet stock came under pressure
• Negative Sentiment: William Blair downgraded NerdWallet from Outperform to Market Perform, adding to the cautious analyst commentary. William Blair downgrade

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Truist Financial dropped their price objective on NerdWallet from $15.00 to $12.00 and set a “buy” rating for the company in a research note on Friday. William Blair downgraded NerdWallet from an “outperform” rating to a “market perform” rating in a report on Friday. Finally, Weiss Ratings upgraded shares of NerdWallet from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, October 15th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $12.33.

Institutional Trading of NerdWallet

A number of hedge funds and other institutional investors have recently bought and sold shares of NRDS. Russell Investments Group Ltd. boosted its stake in shares of NerdWallet by 97.0% in the 3rd quarter. Russell Investments Group Ltd. now owns 176,576 shares of the company’s stock valued at $1,550,000 after purchasing an additional 86,927 shares in the last quarter. Ritholtz Wealth Management purchased a new stake in NerdWallet during the 3rd quarter valued at approximately $378,000. Alps Advisors Inc. purchased a new position in shares of NerdWallet in the third quarter valued at $536,000. State of Wyoming boosted its stake in NerdWallet by 10.3% during the third quarter. State of Wyoming now owns 29,785 shares of the company’s stock worth $262,000 after buying an additional 2,778 shares during the period. Finally, Inspire Investing LLC purchased a new position in shares of NerdWallet during the third quarter worth approximately $638,000. Institutional investors own 38.81% of the company’s stock.

NerdWallet Trading Down 31.0%

The stock has a market capitalization of $504.33 million, a P/E ratio of 10.12 and a beta of 1.20. The company has a 50-day moving average price of $9.70 and a 200 day moving average price of $9.80.

About NerdWallet

NerdWallet, Inc is a personal finance company that operates a digital platform designed to help consumers make informed financial decisions. Its website and mobile tools provide educational content, personalized recommendations and comparison services across a range of financial products.

The company covers categories including credit cards, banking, personal and student loans, mortgages, insurance, investing and small-business finance. NerdWallet generates revenue primarily through partnerships with financial institutions and other providers when users engage with or apply for recommended products.

Founded in 2009 by Tim Chen and Jacob Gibson, NerdWallet is headquartered in San Francisco and serves consumers primarily in the United States.