Coupang (NYSE:CPNG) Lowered to "Hold" Rating by Deutsche Bank Aktiengesellschaft

Key Points

• Deutsche Bank downgraded Coupang from "buy" to "hold" with a $23 price target (about a 10.7% upside), and the stock's consensus rating is now "Hold" with a $26.92 average price target after several recent analyst downgrades and cut targets.
• Quarterly results disappointed on profit: Coupang reported -$0.15 EPS versus a -$0.09 consensus (missing by $0.06) while revenue of $8.50 billion slightly beat expectations, leaving margins thin and analysts forecasting negative EPS for the fiscal year.
• Significant insider buying: Director Neil Mehta purchased 2,332,863 shares at about $18.40 each (roughly $42.9M), with insiders buying 7.35M shares in the last 90 days and holding about 12.78% of the company.

Coupang (NYSE:CPNG - Get Free Report) was downgraded by stock analysts at Deutsche Bank Aktiengesellschaft from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Wednesday. They presently have a $23.00 price objective on the stock. Deutsche Bank Aktiengesellschaft's price target would indicate a potential upside of 10.72% from the company's current price.

Other equities research analysts have also issued research reports about the company. Nomura dropped their price target on Coupang from $22.00 to $20.00 and set a "neutral" rating for the company in a research note on Monday, March 2nd. Wall Street Zen lowered Coupang from a "hold" rating to a "strong sell" rating in a research report on Saturday, March 14th. Sanford C. Bernstein reissued an "underperform" rating on shares of Coupang in a report on Monday, March 2nd. Morgan Stanley dropped their target price on Coupang from $31.00 to $29.00 and set an "overweight" rating for the company in a research report on Monday, March 2nd. Finally, Citigroup lowered Coupang from a "buy" rating to a "neutral" rating and set a $22.20 target price for the company. in a research note on Wednesday. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Coupang currently has an average rating of "Hold" and a consensus price target of $26.92.

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Coupang Price Performance

CPNG stock opened at $20.77 on Wednesday. The firm has a 50 day simple moving average of $19.58 and a two-hundred day simple moving average of $22.82. The stock has a market cap of $37.98 billion, a PE ratio of 173.13 and a beta of 1.20. Coupang has a one year low of $16.74 and a one year high of $34.08. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.04 and a quick ratio of 0.79.

Coupang (NYSE:CPNG - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of ($0.09) by ($0.06). Coupang had a net margin of 0.60% and a return on equity of 4.52%. The company had revenue of $8.50 billion for the quarter, compared to analysts' expectations of $8.48 billion. During the same quarter last year, the business posted $0.06 EPS. The business's quarterly revenue was up 7.5% compared to the same quarter last year. On average, analysts predict that Coupang will post -0.15 EPS for the current fiscal year.

Insider Transactions at Coupang

In other Coupang news, Director Neil Mehta purchased 2,332,863 shares of the business's stock in a transaction on Friday, March 13th. The stock was acquired at an average cost of $18.40 per share, for a total transaction of $42,924,679.20. Following the completion of the transaction, the director directly owned 55,310,977 shares in the company, valued at approximately $1,017,721,976.80. This represents a 4.40% increase in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders have bought 7,350,104 shares of company stock worth $136,566,051 in the last ninety days. Corporate insiders own 12.78% of the company's stock.

Institutional Investors Weigh In On Coupang

A number of hedge funds and other institutional investors have recently modified their holdings of CPNG. Sunbelt Securities Inc. bought a new position in Coupang during the 3rd quarter worth approximately $26,000. Reflection Asset Management bought a new stake in Coupang in the fourth quarter valued at approximately $28,000. Orion Capital Management LLC purchased a new stake in shares of Coupang during the third quarter valued at approximately $32,000. Webster Bank N. A. raised its holdings in Coupang by 325.8% during the 1st quarter. Webster Bank N. A. now owns 1,699 shares of the company's stock valued at $32,000 after buying an additional 1,300 shares during the last quarter. Finally, Fifth Third Bancorp raised its holdings in Coupang by 1,250.0% during the 3rd quarter. Fifth Third Bancorp now owns 1,080 shares of the company's stock valued at $35,000 after buying an additional 1,000 shares during the last quarter. Institutional investors own 83.72% of the company's stock.

About Coupang

Coupang, listed on the New York Stock Exchange under the ticker CPNG, is a South Korean e-commerce company headquartered in Seoul. Founded in 2010 by Bom Kim, the company grew rapidly by combining an online marketplace with a large direct-retail business model. Coupang completed a primary listing in the United States in 2021, and it has become one of South Korea's leading online retailers by focusing on convenience, speed and a wide product assortment across consumer categories.

The company operates a vertically integrated e-commerce platform that includes a customer-facing marketplace and an extensive logistics and fulfillment network.

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