Cardlytics (NASDAQ:CDLX) Shares Down 3.1% - Here's Why

Key Points

• Shares fell 3.1% to about $0.90 on Monday, trading as low as $0.8929 with volume (~689,173 shares) down ~55% from the daily average; market cap is roughly $49.6 million.
• Cardlytics missed EPS for the quarter (reported ($0.15) vs. ($0.07) expected) despite a revenue beat of $56.1M vs. $54.46M, and the company shows negative profitability metrics (net margin ~-44.4%, ROE ~-370.98%).
• Analysts are mixed—two Hold and two Sell, with an average rating of "Reduce" and an average price target of $1.75—while insiders have been selling (CEO sold 69,833 shares; total insider sales of 324,111 shares in the last three months), and insiders own about 5.9% of the stock.

Cardlytics, Inc. (NASDAQ:CDLX - Get Free Report) shares were down 3.1% on Monday . The stock traded as low as $0.8929 and last traded at $0.9010. Approximately 689,173 shares were traded during mid-day trading, a decline of 55% from the average daily volume of 1,523,584 shares. The stock had previously closed at $0.93.

Wall Street Analyst Weigh In

CDLX has been the topic of a number of recent analyst reports. Wall Street Zen raised shares of Cardlytics from a "sell" rating to a "hold" rating in a research note on Saturday, April 4th. Evercore set a $1.00 target price on shares of Cardlytics in a research note on Friday, March 6th. Bank of America restated an "underperform" rating on shares of Cardlytics in a report on Thursday, March 5th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Cardlytics in a report on Friday, April 10th. Two investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and an average price target of $1.75.

Cardlytics Stock Down 3.1%

The firm has a 50 day moving average of $0.91 and a 200-day moving average of $1.17. The company has a market cap of $49.62 million, a P/E ratio of -0.46 and a beta of 0.91.

Cardlytics (NASDAQ:CDLX - Get Free Report) last posted its quarterly earnings data on Wednesday, March 4th. The company reported ($0.15) earnings per share for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.08). Cardlytics had a negative return on equity of 370.98% and a negative net margin of 44.36%.The business had revenue of $56.10 million during the quarter, compared to analyst estimates of $54.46 million. On average, research analysts predict that Cardlytics, Inc. will post -0.01 EPS for the current fiscal year.

Insider Transactions at Cardlytics

In other news, CEO Amit Gupta sold 69,833 shares of the business's stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $1.19, for a total transaction of $83,101.27. Following the completion of the sale, the chief executive officer owned 987,387 shares in the company, valued at approximately $1,174,990.53. The trade was a 6.61% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Nicholas Hollmeyer Lynton sold 40,296 shares of the company's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $0.99, for a total transaction of $39,893.04. Following the completion of the sale, the insider directly owned 167,856 shares of the company's stock, valued at $166,177.44. The trade was a 19.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 324,111 shares of company stock valued at $330,154 over the last three months. Corporate insiders own 5.90% of the company's stock.

Hedge Funds Weigh In On Cardlytics

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CDLX. Vanguard Personalized Indexing Management LLC purchased a new position in shares of Cardlytics during the 3rd quarter worth about $26,000. Virtu Financial LLC purchased a new position in Cardlytics in the fourth quarter valued at about $39,000. Qube Research & Technologies Ltd acquired a new position in Cardlytics during the 3rd quarter worth $55,000. Marshall Wace LLP acquired a new position in shares of Cardlytics in the 2nd quarter worth approximately $59,000. Finally, Renaissance Technologies LLC acquired a new position in shares of Cardlytics in the 4th quarter valued at about $62,000. Institutional investors and hedge funds own 68.10% of the company's stock.

Cardlytics Company Profile

Cardlytics, Inc operates a purchase intelligence and marketing platform that connects advertisers with consumers through bank and credit card transaction data. The company partners with financial institutions to analyze anonymized purchase information, enabling brands to deliver highly targeted offers and rewards directly to customers' online and mobile banking channels. By leveraging real-time insights into consumer spending habits, Cardlytics helps marketers optimize campaign performance and measure return on ad spend more accurately than traditional digital advertising methods.

At the core of Cardlytics' offering is its proprietary purchase intelligence engine, which aggregates and anonymizes transaction data from partner banks and credit unions.

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