eToro Group (NASDAQ:ETOR) Stock Falls 6.5% Following Weak Earnings

eToro Group Ltd. (NASDAQ:ETOR) was down 6.5% during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $21.78 and last traded at $21.8030. Approximately 462,687 shares were traded during mid-day trading, a decline of 60% from the average session volume of 1,163,203 shares. The stock had previously closed at $23.32.

The company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.27 by ($0.01). eToro Group had a return on equity of 20.26% and a net margin of 2.17%. The firm had revenue of $1.49 billion for the quarter. During the same period last year, the company earned $0.53 earnings per share.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. Weiss Ratings cut shares of eToro Group from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, August 25th. The Goldman Sachs Group increased their price target on shares of eToro Group from $32.00 to $36.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 9th. Wall Street Zen cut shares of eToro Group from a “buy” rating to a “hold” rating in a research note on Saturday, August 15th. Zacks Research cut shares of eToro Group from a “hold” rating to a “strong sell” rating in a research note on Monday, October 26th. Finally, TD Cowen lowered their price objective on shares of eToro Group from $35.00 to $33.00 and set a “buy” rating for the company in a research report on Monday, October 12th. Ten investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $46.00.

Insiders Place Their Bets

In related news, Director Shalev Eddy sold 100,000 shares of the firm’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $31.20, for a total value of $3,120,000.00. Following the sale, the director directly owned 196,779 shares of the company’s stock, valued at $6,139,504.80. This trade represents a 33.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Harel Insurance Investments & Financial Services Ltd. lifted its holdings in eToro Group by 61.9% during the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,988,552 shares of the company’s stock worth $59,716,000 after buying an additional 760,654 shares during the period. Wellington Management Group LLP bought a new stake in eToro Group in the second quarter valued at approximately $22,134,000. Bank of New York Mellon Corp bought a new position in eToro Group during the 1st quarter worth approximately $6,048,000. Intrinsic Edge Capital Management LLC acquired a new position in shares of eToro Group in the 1st quarter worth approximately $5,706,000. Finally, Saba Capital Management L.P. boosted its stake in shares of eToro Group by 156.2% in the 1st quarter. Saba Capital Management L.P. now owns 203,291 shares of the company’s stock valued at $6,105,000 after purchasing an additional 123,952 shares during the last quarter.

eToro Group Stock Performance

The company has a market capitalization of $1.78 billion, a price-to-earnings ratio of 8.16, a PEG ratio of 0.74 and a beta of 1.84. The company has a debt-to-equity ratio of 0.02, a current ratio of 4.02 and a quick ratio of 4.02. The company’s 50-day moving average price is $26.38 and its two-hundred day moving average price is $32.44.

eToro Group Company Profile

eToro Group operates an online investing and trading platform that combines access to financial markets with social investing features. Depending on a user’s location, the platform offers instruments such as stocks, exchange-traded funds and cryptoassets, as well as other trading products.

The company’s features include tools for researching and discussing investments and CopyTrader, which lets users view and automatically mirror the portfolios of other investors. Product availability varies by jurisdiction and is subject to local regulations.

Founded in 2007, eToro serves customers in multiple countries.