QuinStreet (NASDAQ:QNST) Stock Rating Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded QuinStreet from “strong buy” to “hold,” though the broader analyst consensus remains “Moderate Buy” with a $23.50 target price.
• QuinStreet’s latest quarterly results exceeded expectations, with EPS of $0.50 versus the $0.44 consensus and revenue of $373.88 million compared with $359.95 million expected.
• The stock opened at $15.40, while insiders sold 829,631 shares worth approximately $17 million over the past three months; institutional investors own 97.83% of the company.

QuinStreet (NASDAQ:QNST - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday, Zacks reports.

Several other research firms have also recently weighed in on QNST. Wall Street Zen raised shares of QuinStreet from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th. B. Riley Financial reissued a "buy" rating on shares of QuinStreet in a report on Friday, August 7th. Weiss Ratings lowered QuinStreet from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, October 2nd. Northland Securities set a $23.00 target price on QuinStreet in a report on Thursday, September 17th. Finally, Lake Street Capital raised QuinStreet from a "hold" rating to a "buy" rating and set a $21.00 price target for the company in a research note on Friday, August 7th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, QuinStreet presently has a consensus rating of "Moderate Buy" and a consensus target price of $23.50.

QuinStreet Stock Performance

NASDAQ:QNST opened at $15.40 on Tuesday. The stock has a 50-day moving average price of $17.83 and a 200 day moving average price of $14.93. The stock has a market capitalization of $881.19 million, a P/E ratio of 10.92 and a beta of 0.74. QuinStreet has a 12-month low of $10.28 and a 12-month high of $22.29. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.22.

QuinStreet (NASDAQ:QNST - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The technology company reported $0.50 EPS for the quarter, topping analysts' consensus estimates of $0.44 by $0.06. QuinStreet had a return on equity of 12.73% and a net margin of 6.28%.The company had revenue of $373.88 million for the quarter, compared to analysts' expectations of $359.95 million. Equities research analysts forecast that QuinStreet will post 1.06 EPS for the current fiscal year.

Insider Buying and Selling

In other QuinStreet news, CEO Douglas Valenti sold 751,631 shares of QuinStreet stock in a transaction on Friday, August 7th. The shares were sold at an average price of $20.50, for a total transaction of $15,408,435.50. Following the completion of the transaction, the chief executive officer directly owned 996,278 shares of the company's stock, valued at $20,423,699. The trade was a 43.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Gregory Wong sold 11,704 shares of the business's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $20.44, for a total transaction of $239,229.76. Following the transaction, the chief financial officer owned 481,786 shares in the company, valued at $9,847,705.84. This trade represents a 2.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 829,631 shares of company stock worth $16,999,952 over the last three months. 3.50% of the stock is owned by insiders.

Hedge Funds Weigh In On QuinStreet

Large investors have recently made changes to their positions in the company. GAMMA Investing LLC lifted its stake in shares of QuinStreet by 17.0% in the 2nd quarter. GAMMA Investing LLC now owns 4,457 shares of the technology company's stock valued at $65,000 after purchasing an additional 649 shares during the last quarter. PNC Financial Services Group Inc. raised its holdings in QuinStreet by 54.4% in the 1st quarter. PNC Financial Services Group Inc. now owns 3,027 shares of the technology company's stock valued at $36,000 after buying an additional 1,066 shares during the period. Allworth Financial LP boosted its stake in QuinStreet by 61.5% during the second quarter. Allworth Financial LP now owns 4,512 shares of the technology company's stock worth $66,000 after buying an additional 1,718 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of QuinStreet by 1.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 114,470 shares of the technology company's stock valued at $1,677,000 after acquiring an additional 2,091 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its position in shares of QuinStreet by 11.5% during the first quarter. Allspring Global Investments Holdings LLC now owns 51,975 shares of the technology company's stock valued at $623,000 after acquiring an additional 5,378 shares during the last quarter. 97.83% of the stock is owned by hedge funds and other institutional investors.

QuinStreet Company Profile

QuinStreet, Inc is a performance marketing and online marketplace company that connects consumers with brands in industries such as insurance, lending, credit cards, banking, and home services. The company operates digital media properties and uses technology, data, and analytics to help consumers compare products and services from participating providers.

QuinStreet's platform supports customer acquisition through online inquiries, leads, clicks, calls, and other actions. Its products and services are designed to help businesses reach consumers who are actively researching or seeking financial and home-related services, while providing consumers with information and comparison options.

Founded in 1999, QuinStreet is headquartered in Foster City, California, and primarily serves the United States market.

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