Coupang (NYSE:CPNG) Shares Gap Down After Earnings Miss

Key Points

• Coupang stock gapped down from $29.90 to $27.70 after reporting quarterly earnings that missed expectations, with an EPS of $0.02 compared to the consensus estimate of $0.07.
• The company had a revenue increase of 16.4% year-over-year, reporting $8.52 billion for the quarter, surpassing analyst estimates of $8.34 billion.
• Analysts have mixed ratings for Coupang, with three analysts giving it a "hold" rating and five analysts issuing a "buy" rating, alongside a consensus price target of $30.57.

Coupang, Inc. (NYSE:CPNG - Get Free Report)'s stock price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $29.90, but opened at $27.70. Coupang shares last traded at $28.01, with a volume of 7,746,230 shares.

The company reported $0.02 EPS for the quarter, missing the consensus estimate of $0.07 by ($0.05). The firm had revenue of $8.52 billion during the quarter, compared to analyst estimates of $8.34 billion. Coupang had a net margin of 0.82% and a return on equity of 10.07%. The company's revenue was up 16.4% on a year-over-year basis. During the same period last year, the company earned $0.07 EPS.

Analyst Ratings Changes

Several equities analysts have commented on CPNG shares. Deutsche Bank Aktiengesellschaft cut Coupang from a "buy" rating to a "hold" rating and set a $27.00 price target for the company. in a report on Wednesday. Nomura raised Coupang from a "neutral" rating to a "buy" rating and set a $35.00 price target for the company in a report on Wednesday. Mizuho raised Coupang to a "hold" rating in a report on Friday, April 18th. Barclays upped their price objective on Coupang from $35.00 to $36.00 and gave the company an "overweight" rating in a research note on Thursday, May 8th. Finally, Wall Street Zen lowered Coupang from a "buy" rating to a "hold" rating in a research note on Sunday, July 20th. Three equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. Based on data from MarketBeat, Coupang presently has a consensus rating of "Moderate Buy" and a consensus price target of $30.57.

Insider Buying and Selling at Coupang

In related news, VP Pranam Kolari sold 11,653 shares of the stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $29.14, for a total transaction of $339,568.42. Following the sale, the vice president directly owned 158,676 shares in the company, valued at $4,623,818.64. This represents a 6.84% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Benjamin Sun sold 200,000 shares of the stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $28.36, for a total value of $5,672,000.00. Following the sale, the director owned 1,319,421 shares in the company, valued at approximately $37,418,779.56. This trade represents a 13.16% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 40,462,003 shares of company stock worth $1,067,897,453 over the last 90 days. Company insiders own 12.78% of the company's stock.

Institutional Investors Weigh In On Coupang

Large investors have recently bought and sold shares of the business. Albion Financial Group UT bought a new stake in Coupang during the 2nd quarter worth approximately $30,000. SVB Wealth LLC bought a new position in Coupang in the 1st quarter valued at $28,000. Bank Julius Baer & Co. Ltd Zurich bought a new position in Coupang in the 1st quarter valued at $30,000. Grove Bank & Trust bought a new position in Coupang in the 1st quarter valued at $33,000. Finally, Brooklyn Investment Group boosted its position in Coupang by 43.1% in the 1st quarter. Brooklyn Investment Group now owns 1,680 shares of the company's stock valued at $37,000 after buying an additional 506 shares during the last quarter. 83.72% of the stock is currently owned by institutional investors.

Coupang Price Performance

The stock has a market capitalization of $50.16 billion, a P/E ratio of 197.34 and a beta of 1.16. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.90 and a current ratio of 1.16. The stock has a 50-day simple moving average of $29.46 and a 200 day simple moving average of $25.64.

About Coupang

Coupang, Inc, together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services.

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