eToro Group (NASDAQ:ETOR) Posts Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Key Points

• eToro exceeded earnings expectations, reporting quarterly EPS of $0.68 versus the $0.61 analyst consensus. However, revenue declined 23.9% year over year, while net margin was 1.90% and return on equity was 19.79%.
• Wall Street’s outlook remains generally positive: the stock has a consensus “Moderate Buy” rating from 16 analysts and an average price target of $55.80, well above its $34.00 opening price.
• Company insiders recently sold shares, including Director Shalev Eddy’s $4.1 million sale and CEO Hedva Ber’s $2.3 million sale, both conducted at prices above $41 per share.

eToro Group (NASDAQ:ETOR - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.68 earnings per share for the quarter, topping analysts' consensus estimates of $0.61 by $0.07, Briefing.com reports. eToro Group had a net margin of 1.90% and a return on equity of 19.79%. The company's revenue was down 23.9% compared to the same quarter last year. During the same period last year, the firm earned $0.56 earnings per share.

eToro Group Stock Performance

Shares of eToro Group stock opened at $34.00 on Tuesday. The firm has a market capitalization of $2.82 billion, a P/E ratio of 14.23, a PEG ratio of 0.76 and a beta of 1.68. The company has a quick ratio of 3.92, a current ratio of 3.92 and a debt-to-equity ratio of 0.02. The company has a 50 day moving average price of $38.21 and a 200 day moving average price of $34.96. eToro Group has a 52 week low of $24.74 and a 52 week high of $58.82.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on ETOR. Needham & Company LLC increased their price objective on shares of eToro Group from $58.00 to $66.00 and gave the company a "buy" rating in a research note on Wednesday, May 13th. Susquehanna lifted their price target on eToro Group from $55.00 to $57.00 and gave the company a "positive" rating in a report on Wednesday, May 13th. Wall Street Zen upgraded eToro Group from a "hold" rating to a "buy" rating in a research note on Sunday, July 12th. Zacks Research lowered eToro Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 14th. Finally, Keefe, Bruyette & Woods increased their price target on shares of eToro Group from $35.00 to $38.00 and gave the company a "market perform" rating in a research report on Wednesday, May 13th. Ten equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, eToro Group currently has a consensus rating of "Moderate Buy" and an average target price of $55.80.

Insider Activity at eToro Group

In related news, Director Shalev Eddy sold 100,000 shares of the firm's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $41.26, for a total transaction of $4,126,000.00. Following the sale, the director directly owned 296,779 shares of the company's stock, valued at $12,245,101.54. This trade represents a 25.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Hedva Ber sold 55,160 shares of the stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $41.90, for a total transaction of $2,311,204.00. Following the sale, the chief executive officer directly owned 20,660 shares in the company, valued at approximately $865,654. The trade was a 72.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of eToro Group

Several large investors have recently made changes to their positions in the company. ExodusPoint Capital Management LP purchased a new stake in eToro Group in the 4th quarter valued at $246,000. Royal Bank of Canada increased its holdings in eToro Group by 579.7% in the 4th quarter. Royal Bank of Canada now owns 11,133 shares of the company's stock valued at $391,000 after purchasing an additional 9,495 shares during the last quarter. Mariner LLC acquired a new position in eToro Group during the 4th quarter worth about $347,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in shares of eToro Group during the third quarter worth about $256,000. Finally, Legal & General Group Plc purchased a new position in eToro Group in the 3rd quarter valued at approximately $287,000.

eToro Group Company Profile

eToro Group Ltd. NASDAQ: ETOR is a global multi-asset brokerage company known for its social trading platform. The company enables individual and institutional investors to trade and invest in a broad range of financial instruments, including stocks, exchange-traded funds (ETFs), commodities, indices, forex, and cryptocurrencies. eToro’s platform integrates a user-friendly interface with advanced trading tools, catering to both novice and experienced market participants.

A distinguishing feature of eToro’s offering is its CopyTrader™ functionality, which allows users to replicate the trades of selected investors on the platform.

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