eToro Group (NASDAQ:ETOR) Price Target Cut to $35.00 by Analysts at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods cut eToro’s price target to $35 from $45 while maintaining a “market perform” rating. Despite multiple target reductions, analysts’ consensus remains “Moderate Buy” with a $53.27 target.
• eToro reported adjusted quarterly EPS of $0.68, beating the $0.61 consensus estimate, but revenue fell 23.9% year over year and net margin was just 1.9%.
• Shares dropped 4.5% to $28.01 as investors weighed the mixed results and concerns surrounding eToro’s proposed $231 million acquisition of TradeZero to accelerate U.S. expansion.

eToro Group (NASDAQ:ETOR - Get Free Report) had its price objective reduced by equities research analysts at Keefe, Bruyette & Woods from $45.00 to $35.00 in a research note issued on Wednesday,Benzinga reports. The firm currently has a "market perform" rating on the stock. Keefe, Bruyette & Woods' price objective points to a potential upside of 24.96% from the company's previous close.

Several other brokerages also recently commented on ETOR. Cantor Fitzgerald cut their target price on eToro Group from $61.00 to $53.00 and set an "overweight" rating on the stock in a report on Wednesday. Susquehanna increased their price target on eToro Group from $55.00 to $57.00 and gave the company a "positive" rating in a research note on Wednesday, May 13th. Citizens Jmp raised their price objective on eToro Group from $85.00 to $90.00 and gave the stock a "market outperform" rating in a research report on Wednesday, May 13th. Needham & Company LLC reduced their target price on eToro Group from $66.00 to $53.00 and set a "buy" rating on the stock in a report on Wednesday. Finally, Zacks Research downgraded shares of eToro Group from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 14th. Ten analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $53.27.

eToro Group Trading Down 4.5%

NASDAQ ETOR traded down $1.32 on Wednesday, hitting $28.01. The company's stock had a trading volume of 1,604,802 shares, compared to its average volume of 1,165,057. The company has a quick ratio of 3.92, a current ratio of 3.92 and a debt-to-equity ratio of 0.02. eToro Group has a 1-year low of $24.74 and a 1-year high of $51.88. The company's 50-day moving average is $37.98 and its 200 day moving average is $34.95. The firm has a market cap of $2.32 billion, a PE ratio of 11.72, a PEG ratio of 0.74 and a beta of 1.68.

eToro Group (NASDAQ:ETOR - Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $0.68 EPS for the quarter, topping analysts' consensus estimates of $0.61 by $0.07. eToro Group had a net margin of 1.90% and a return on equity of 19.79%. The company had revenue of $1.59 billion for the quarter. During the same quarter last year, the firm posted $0.56 EPS. eToro Group's revenue for the quarter was down 23.9% on a year-over-year basis. As a group, analysts predict that eToro Group will post 2.81 earnings per share for the current fiscal year.

Insider Activity at eToro Group

In other news, Director Shalev Eddy sold 100,000 shares of eToro Group stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $41.26, for a total value of $4,126,000.00. Following the completion of the sale, the director owned 296,779 shares in the company, valued at $12,245,101.54. The trade was a 25.20% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Hedva Ber sold 55,160 shares of the business's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $41.90, for a total transaction of $2,311,204.00. Following the transaction, the chief executive officer owned 20,660 shares in the company, valued at $865,654. The trade was a 72.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On eToro Group

Institutional investors and hedge funds have recently made changes to their positions in the stock. Harel Insurance Investments & Financial Services Ltd. increased its position in eToro Group by 61.9% in the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,988,552 shares of the company's stock valued at $59,716,000 after buying an additional 760,654 shares in the last quarter. T. Rowe Price Investment Management Inc. grew its stake in eToro Group by 67.4% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,695,702 shares of the company's stock valued at $59,571,000 after acquiring an additional 683,008 shares during the period. Adage Capital Partners GP L.L.C. increased its holdings in shares of eToro Group by 47.9% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 1,240,339 shares of the company's stock valued at $43,573,000 after acquiring an additional 401,697 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of eToro Group by 12.2% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,017,374 shares of the company's stock worth $30,552,000 after purchasing an additional 110,998 shares during the period. Finally, Invesco Ltd. lifted its holdings in shares of eToro Group by 14,120.4% in the 4th quarter. Invesco Ltd. now owns 974,243 shares of the company's stock worth $34,225,000 after purchasing an additional 967,392 shares in the last quarter.

Key eToro Group News

Here are the key news stories impacting eToro Group this week:

• Positive Sentiment: eToro reported second-quarter adjusted EPS of $0.68, exceeding the $0.61 consensus estimate. The company also highlighted record assets under administration, funded-account growth and opportunities to expand its U.S. presence. Reuters earnings and TradeZero article
• Positive Sentiment: Analysts remain broadly constructive despite reducing their estimates. Mizuho cut its price target to $52 while retaining an “outperform” rating; Cantor Fitzgerald and Needham lowered targets to $53 while maintaining “overweight” and “buy” ratings, respectively. These targets imply substantial potential upside from recent trading levels. Mizuho analyst note Cantor Fitzgerald analyst note
• Neutral Sentiment: UBS lowered its price target from $50 to $35 and moved to a “neutral” rating, signaling more cautious expectations. The reduction appears tied to lower earnings or EBITDA assumptions rather than a complete change in the long-term growth outlook. Benzinga analyst coverage
• Negative Sentiment: The proposed acquisition of U.S.-focused online brokerage TradeZero, valued at up to $231 million in cash and stock, raised investor concerns about execution, integration costs and capital allocation. The deal is intended to accelerate U.S. expansion, but it overshadowed the earnings beat. Business Insider TradeZero article
• Negative Sentiment: Reported revenue declined 23.9% year over year, while net margin was only 1.9%. The mixed results suggest that profitability exceeded expectations, but operating momentum remains a concern for investors.

About eToro Group

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source