NerdWallet (NASDAQ:NRDS) Stock Price Target Cut by Truist Financial

Key Points

• Truist cut NerdWallet’s price target from $15 to $12 but maintained a Buy rating; the new target implies 48.79% upside from the prior close.
• NerdWallet shares fell 29.4% Friday to $8.06, following quarterly results that missed analyst estimates for both earnings and revenue.
• Revenue rose 11.4% year over year to $239.6 million, but the company’s fourth-quarter revenue forecast of $191 million–$203 million was well below the roughly $241 million consensus estimate; William Blair also downgraded the stock to Market Perform.

NerdWallet (NASDAQ:NRDS - Get Free Report) had its price objective dropped by research analysts at Truist Financial from $15.00 to $12.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Truist Financial's target price indicates a potential upside of 48.79% from the company's previous close.

NRDS has been the topic of several other research reports. William Blair downgraded shares of NerdWallet from an "outperform" rating to a "market perform" rating in a report on Friday. Weiss Ratings raised shares of NerdWallet from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 15th. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $12.33.

NerdWallet Stock Down 29.4%

NRDS stock traded down $3.37 during trading on Friday, reaching $8.06. The company's stock had a trading volume of 1,658,669 shares, compared to its average volume of 848,838. NerdWallet has a 1 year low of $7.33 and a 1 year high of $16.24. The company has a market capitalization of $515.54 million, a P/E ratio of 9.05 and a beta of 1.20. The company's fifty day moving average is $9.74 and its 200-day moving average is $9.83.

NerdWallet (NASDAQ:NRDS - Get Free Report) last released its earnings results on Thursday, November 5th. The company reported $0.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.11). NerdWallet had a return on equity of 18.07% and a net margin of 7.56%. The business had revenue of $239.60 million for the quarter, compared to analysts' expectations of $251.86 million. During the same quarter in the prior year, the business posted $0.34 EPS. The business's revenue for the quarter was up 11.4% compared to the same quarter last year. Analysts anticipate that NerdWallet will post 0.88 earnings per share for the current year.

Institutional Trading of NerdWallet

Several hedge funds have recently modified their holdings of the company. New York State Teachers Retirement System purchased a new position in shares of NerdWallet in the 1st quarter worth $41,000. Nisa Investment Advisors LLC lifted its holdings in shares of NerdWallet by 442.1% in the 3rd quarter. Nisa Investment Advisors LLC now owns 8,597 shares of the company's stock valued at $75,000 after acquiring an additional 7,011 shares during the last quarter. State of Wyoming grew its position in NerdWallet by 10.3% in the third quarter. State of Wyoming now owns 29,785 shares of the company's stock worth $262,000 after acquiring an additional 2,778 shares in the last quarter. Ritholtz Wealth Management purchased a new position in NerdWallet in the third quarter worth about $378,000. Finally, Squarepoint Ops LLC purchased a new position in NerdWallet in the second quarter worth about $508,000. 38.81% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting NerdWallet

Here are the key news stories impacting NerdWallet this week:

• Positive Sentiment: Third-quarter revenue increased 11.4% year over year to $239.6 million, indicating continued top-line growth. NerdWallet Reports Third Quarter Results
• Negative Sentiment: Third-quarter adjusted earnings were $0.23 per share, below the $0.34–$0.35 analyst estimates and down from $0.34 a year earlier. Revenue of $239.6 million also missed expectations of about $251.9 million. NerdWallet Misses Q3 Earnings and Revenue Estimates
• Negative Sentiment: NerdWallet forecast fourth-quarter revenue of $191 million to $203 million, substantially below the $241 million consensus estimate, signaling a weaker near-term revenue outlook.
• Negative Sentiment: William Blair downgraded NRDS from Outperform to Market Perform, adding to concerns following the results and outlook. William Blair Downgrades NerdWallet

NerdWallet Company Profile

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.

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