NerdWallet, Inc. (NASDAQ:NRDS) Stock Has Average Target Price of $11.40

Key Points

• Analysts are mixed on NerdWallet: Eight firms give the stock an average “Hold” rating, with an average 12-month price target of $11.40. Truist kept a Buy rating but cut its target to $12 from $15, while William Blair downgraded its rating to Market Perform.
• Shares fell 31% to $7.89 in Friday trading, following results that missed estimates: quarterly EPS was $0.23 versus $0.34 expected, and revenue was $239.6 million versus $251.9 million expected.
• The near-term outlook also disappointed: fourth-quarter revenue guidance of $191 million–$203 million was well below analyst consensus of about $241 million, while costs rose roughly 22% against 12% growth in consumer revenue.

NerdWallet, Inc. (NASDAQ:NRDS - Get Free Report) has been assigned an average recommendation of "Hold" from the eight research firms that are currently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and three have issued a buy rating on the company. The average 1 year price objective among analysts that have covered the stock in the last year is $11.40.

A number of equities analysts have commented on the stock. Truist Financial reduced their target price on shares of NerdWallet from $15.00 to $12.00 and set a "buy" rating on the stock in a research note 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. Finally, William Blair downgraded shares of NerdWallet from an "outperform" rating to a "market perform" rating in a report on Friday.

NerdWallet Stock Down 31.0%

NRDS traded down $3.54 during trading on Friday, reaching $7.89. The company's stock had a trading volume of 3,076,822 shares, compared to its average volume of 744,444. The firm has a fifty day simple moving average of $9.70 and a two-hundred day simple moving average of $9.80. NerdWallet has a 1 year low of $7.33 and a 1 year high of $16.24. The company has a market cap of $504.33 million, a price-to-earnings ratio of 10.12 and a beta of 1.20.

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

Institutional Investors Weigh In On NerdWallet

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NRDS. Russell Investments Group Ltd. raised its position in NerdWallet by 97.0% in the third quarter. Russell Investments Group Ltd. now owns 176,576 shares of the company's stock valued at $1,550,000 after purchasing an additional 86,927 shares during the period. Ritholtz Wealth Management acquired a new position in NerdWallet in the third quarter valued at about $378,000. Alps Advisors Inc. acquired a new position in NerdWallet in the third quarter valued at about $536,000. State of Wyoming boosted its stake in NerdWallet by 10.3% during the third quarter. State of Wyoming now owns 29,785 shares of the company's stock worth $262,000 after buying an additional 2,778 shares during the period. Finally, Inspire Investing LLC purchased a new position in NerdWallet during the third quarter worth about $638,000. Institutional investors and hedge funds own 38.81% of the company's stock.

NerdWallet News Summary

Here are the key news stories impacting NerdWallet this week:

• Positive Sentiment: Truist maintained a Buy rating and sees potential upside from its current level, although it cut its price target to $12 from $15. Truist analyst information
• Negative Sentiment: Fourth-quarter revenue guidance of $191 million–$203 million came in well below the roughly $241 million analyst consensus, signaling a weaker near-term outlook. NerdWallet third-quarter results
• Negative Sentiment: Third-quarter adjusted earnings of $0.23 per share and revenue of $239.6 million missed consensus estimates of $0.34 and $251.9 million, respectively. Earnings also declined from $0.34 per share a year earlier. NerdWallet misses third-quarter estimates
• Negative Sentiment: Costs rose about 22%, nearly twice the 12% growth in consumer revenue, fueling concerns that expense growth is eroding the benefit of sales gains. Why NerdWallet stock came under pressure
• Negative Sentiment: William Blair downgraded NerdWallet from Outperform to Market Perform, adding to the cautious analyst commentary. William Blair downgrade

About NerdWallet

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.