Coupang (NYSE:CPNG) Stock Price Target Cut by Sanford C. Bernstein

Key Points

• Sanford C. Bernstein cut Coupang’s price target from $12 to $11 and maintained an “underperform” rating, implying 32.14% downside from the stock’s current price.
• Analyst views are mixed: six rate Coupang Buy, two Hold, and two Sell; the consensus rating is Hold with a $23.14 average price target.
• Coupang’s quarterly revenue of $9.96 billion beat estimates, but its loss of $0.18 per share was worse than the expected $0.09 loss and the prior-year $0.05 profit.

Coupang (NYSE:CPNG - Get Free Report) had its price target decreased by investment analysts at Sanford C. Bernstein from $12.00 to $11.00 in a report released on Thursday, Benzinga reports. The firm currently has an "underperform" rating on the stock. Sanford C. Bernstein's target price indicates a potential downside of 32.14% from the stock's current price.

CPNG has been the subject of a number of other reports. Weiss Ratings reiterated a "sell (d)" rating on shares of Coupang in a research report on Monday. Mizuho set a $21.00 price target on shares of Coupang in a research report on Wednesday. Bank of America decreased their price target on shares of Coupang from $27.00 to $24.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Citigroup upgraded shares of Coupang from a "neutral" rating to a "buy" rating and set a $19.00 price objective for the company in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of Coupang from a "hold" rating to a "buy" rating and lowered their price objective for the company from $23.00 to $21.50 in a research report on Wednesday, August 5th. Six 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. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $23.14.

Coupang Price Performance

Shares of Coupang stock traded down $0.84 during trading on Thursday, reaching $16.21. 16,491,747 shares of the stock traded hands, compared to its average volume of 21,176,676. The company has a market capitalization of $29.14 billion, a price-to-earnings ratio of -21.36 and a beta of 1.15. The business has a fifty day simple moving average of $14.74 and a two-hundred day simple moving average of $17.19. The company has a debt-to-equity ratio of 0.21, a current ratio of 0.87 and a quick ratio of 0.68. Coupang has a 52-week low of $13.35 and a 52-week high of $30.09.

Coupang (NYSE:CPNG - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The company reported ($0.18) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.09). Coupang had a negative return on equity of 20.09% and a negative net margin of 3.77%. The firm had revenue of $9.96 billion during the quarter, compared to the consensus estimate of $9.76 billion. During the same period last year, the firm posted $0.05 earnings per share. The company's revenue for the quarter was up 7.5% compared to the same quarter last year. Sell-side analysts expect that Coupang will post -0.47 EPS for the current year.

Insiders Place Their Bets

In other Coupang news, CAO Jonathan D. Lee sold 5,519 shares of the business's stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $13.65, for a total transaction of $75,334.35. Following the transaction, the chief accounting officer owned 176,396 shares in the company, valued at $2,407,805.40. The trade was a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Harold Rogers sold 192,110 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $16.18, for a total transaction of $3,108,339.80. Following the completion of the sale, the insider directly owned 740,931 shares in the company, valued at approximately $11,988,263.58. This represents a 20.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 203,148 shares of company stock valued at $3,272,530. 12.83% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Coupang

A number of institutional investors and hedge funds have recently modified their holdings of CPNG. Tiger Global Management LLC grew its holdings in Coupang by 31.7% during the first quarter. Tiger Global Management LLC now owns 34,595,407 shares of the company's stock worth $653,161,000 after acquiring an additional 8,328,148 shares during the period. Assenagon Asset Management S.A. boosted its position in Coupang by 112.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 28,102,139 shares of the company's stock worth $389,777,000 after purchasing an additional 14,865,737 shares in the last quarter. Coronation Fund Managers Ltd. boosted its position in Coupang by 98.3% in the 1st quarter. Coronation Fund Managers Ltd. now owns 11,771,286 shares of the company's stock worth $222,242,000 after purchasing an additional 5,835,072 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Coupang by 20.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,366,766 shares of the company's stock worth $82,404,000 after purchasing an additional 732,300 shares during the period. Finally, Tree Line Advisors Hong Kong Ltd. acquired a new stake in shares of Coupang during the 2nd quarter worth approximately $67,743,000. 83.72% of the stock is owned by institutional investors.

Trending Headlines about Coupang

Here are the key news stories impacting Coupang this week:

• Positive Sentiment: Coupang forecast fourth-quarter constant-currency revenue growth of 13%–14% and 50–150 basis points of adjusted EBITDA margin expansion. Q4 guidance
• Positive Sentiment: Third-quarter revenue reached $9.96 billion, topping estimates; constant-currency revenue grew 11% year over year. Taiwan WOW membership more than doubled, signaling continued customer growth. Long-term investor takeaways
• Positive Sentiment: Citigroup upgraded CPNG from Neutral to Buy and set a $19 price target, reflecting a more favorable view of the stock’s prospects. Citi upgrade
• Negative Sentiment: Despite beating revenue expectations, Coupang reported a quarterly loss of $0.18 per share, worse than the $0.09 loss expected in the provided earnings data, and down from a $0.05 profit a year earlier. The earnings shortfall and widening losses may be weighing on sentiment. Q3 earnings report

Coupang Company Profile

Coupang, Inc is an e-commerce and technology company that operates a large digital retail platform. The company offers a broad selection of merchandise, including electronics, household goods, apparel, beauty products and groceries. Its services include Rocket Delivery, a fast-delivery program; Rocket Fresh, which focuses on fresh food and groceries; and Wow, a membership program that provides delivery and other customer benefits.

Coupang also operates Coupang Eats, a restaurant-ordering and delivery service, as well as Coupang Play, a digital video streaming platform.

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