Maplebear (NASDAQ:CART) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised Maplebear’s price target from $58 to $65 and maintained a “buy” rating, implying approximately 12.9% upside from the reported $57.56 share price.
• Analyst sentiment remains mixed: seven analysts rate the stock a Buy and 14 rate it a Hold, producing a consensus Hold rating and average price target of $59.06.
• Maplebear’s latest quarter showed mixed results, with revenue rising 16.6% year over year to $1.09 billion and exceeding estimates, while EPS of $0.60 fell short of the $0.63 consensus.

Maplebear (NASDAQ:CART - Get Free Report) had its price target raised by equities research analysts at Citigroup from $58.00 to $65.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Citigroup's price target would indicate a potential upside of 12.93% from the company's current price.

Several other brokerages also recently issued reports on CART. Wall Street Zen downgraded Maplebear from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Rosenblatt Securities assumed coverage on Maplebear in a research report on Tuesday, September 1st. They set a "neutral" rating and a $55.00 price target for the company. Citizens Jmp cut Maplebear from a "market outperform" rating to a "hold" rating in a research report on Friday. Wells Fargo & Company raised their price target on shares of Maplebear from $54.00 to $56.00 and gave the stock an "equal weight" rating in a research note on Monday, October 5th. Finally, BNP Paribas Exane upgraded shares of Maplebear from an "underperform" rating to a "neutral" rating and set a $56.00 price target for the company in a report on Friday, August 7th. Seven investment analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $59.06.

Maplebear Stock Performance

NASDAQ CART traded up $1.11 during trading hours on Monday, reaching $57.56. The company's stock had a trading volume of 3,114,767 shares, compared to its average volume of 4,729,668. The stock has a market cap of $13.32 billion, a PE ratio of 29.97, a PEG ratio of 1.12 and a beta of 0.87. Maplebear has a fifty-two week low of $32.73 and a fifty-two week high of $62.00. The company's 50-day moving average is $49.05 and its two-hundred day moving average is $43.31.

Maplebear (NASDAQ:CART - Get Free Report) last announced its earnings results on Thursday, October 29th. The company reported $0.60 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.63 by ($0.03). Maplebear had a return on equity of 22.50% and a net margin of 11.59%. The business had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.07 billion. During the same quarter in the previous year, the firm posted $0.42 EPS. The business's revenue was up 16.6% on a year-over-year basis. Equities analysts expect that Maplebear will post 2.29 earnings per share for the current fiscal year.

Insider Activity at Maplebear

In related news, Director Ravi Gupta sold 150,000 shares of Maplebear stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $50.61, for a total transaction of $7,591,500.00. Following the transaction, the director owned 591,523 shares in the company, valued at approximately $29,936,979.03. The trade was a 20.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Emily Reuter sold 50,000 shares of the company's stock in a transaction on Friday, October 23rd. The stock was sold at an average price of $55.00, for a total transaction of $2,750,000.00. Following the sale, the chief financial officer directly owned 599,337 shares of the company's stock, valued at approximately $32,963,535. This trade represents a 7.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 309,928 shares of company stock valued at $16,121,073 over the last quarter. Company insiders own 24.00% of the company's stock.

Institutional Investors Weigh In On Maplebear

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Chicago Partners Investment Group LLC purchased a new position in Maplebear in the 3rd quarter valued at about $223,000. Sumitomo Mitsui Trust Group Inc. purchased a new position in Maplebear in the third quarter valued at about $601,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in Maplebear during the 3rd quarter valued at approximately $87,000. Vise Technologies Inc. purchased a new stake in Maplebear during the 3rd quarter worth approximately $716,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al raised its position in shares of Maplebear by 16.9% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 97,550 shares of the company's stock valued at $4,206,000 after purchasing an additional 14,100 shares in the last quarter. Hedge funds and other institutional investors own 63.09% of the company's stock.

Maplebear News Roundup

Here are the key news stories impacting Maplebear this week:

• Positive Sentiment: A reported DoorDash deal valued at approximately $17 billion, or $65 per share, represents a premium to recent CART trading levels and has become the dominant near-term catalyst. The transaction could provide shareholders with a defined value and increase attention on Instacart’s strategic position. CART Q3 Earnings Miss, Revenues Beat, DoorDash Deal Takes Focus
• Positive Sentiment: Third-quarter revenue exceeded expectations, continuing strong growth, while reported revenue increased 16.6% year over year. This indicates continued demand for the company’s grocery-delivery marketplace despite the earnings shortfall. CART Q3 Earnings Miss, Revenues Beat, DoorDash Deal Takes Focus
• Neutral Sentiment: Maplebear reported quarterly EPS of $0.60, below the $0.63 consensus estimate, although revenue was ahead of forecasts. The mixed results make the DoorDash transaction and its terms more important to the stock’s valuation.
• Negative Sentiment: Jefferies, Wedbush, Cantor Fitzgerald, Needham, Citizens JMP, Sanford C. Bernstein and Barclays all moved their ratings to Hold, Equal Weight or Market Perform. The unusually broad downgrade pattern signals reduced analyst conviction after the recent rally and could pressure the shares. Bernstein downgrades Maplebear
• Negative Sentiment: SBS Law announced a fraud investigation and invited CART investors to participate. The announcement does not establish wrongdoing, but it introduces potential legal, financial and reputational risks. CART Investors Have Opportunity to Join Maplebear Fraud Investigation

Maplebear Company Profile

Maplebear Inc, doing business as Instacart, operates a technology-enabled grocery marketplace that connects consumers with retailers and personal shoppers. Through its website and mobile applications, customers can order groceries and other household products for delivery or pickup from participating supermarkets, specialty food stores, convenience retailers and other merchants.

The company also provides retailers with e-commerce, fulfillment and advertising solutions. Its platform supports online storefronts, order management, delivery logistics, customer engagement and data-driven marketing, allowing retail partners to offer digital shopping services and reach consumers through Instacart's marketplace.

Founded in 2012, Maplebear serves customers across the United States and Canada.

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