Sumitomo Mitsui Trust Group Inc. Makes New Investment in Nextdoor Holdings, Inc. $NXDR

Key Points

• Sumitomo Mitsui Trust Group bought 11,899,919 shares of Nextdoor (NYSE: NXDR) in Q4—about 3.03% of the company—valued at roughly $24.99 million.
• Nextdoor slightly beat earnings estimates, reporting ($0.01) EPS vs. consensus ($0.03) and $69.48 million in revenue, but remains unprofitable with a -21.04% net margin and -11.48% return on equity.
• Analyst sentiment is weak: the consensus rating is "Reduce" with an average target of $2.10, while shares trade near $1.55 and the company has a market cap around $599 million.

Sumitomo Mitsui Trust Group Inc. bought a new position in shares of Nextdoor Holdings, Inc. (NYSE:NXDR - Free Report) during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund bought 11,899,919 shares of the company's stock, valued at approximately $24,990,000. Sumitomo Mitsui Trust Group Inc. owned about 3.03% of Nextdoor as of its most recent SEC filing.

Separately, Savvy Advisors Inc. purchased a new position in shares of Nextdoor during the 4th quarter worth $45,000. Institutional investors and hedge funds own 35.66% of the company's stock.

Nextdoor Stock Performance

Shares of NXDR opened at $1.55 on Friday. The stock has a market cap of $599.04 million, a price-to-earnings ratio of -11.03 and a beta of 1.25. Nextdoor Holdings, Inc. has a 12-month low of $1.32 and a 12-month high of $3.72. The firm has a 50-day moving average of $1.55.

Nextdoor (NYSE:NXDR - Get Free Report) last issued its quarterly earnings results on Wednesday, February 18th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.03) by $0.02. The company had revenue of $69.48 million for the quarter. Nextdoor had a negative net margin of 21.04% and a negative return on equity of 11.48%.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on NXDR shares. Wall Street Zen lowered Nextdoor from a "buy" rating to a "hold" rating in a report on Sunday, March 1st. Citigroup reduced their price target on Nextdoor from $2.20 to $2.10 and set a "neutral" rating on the stock in a report on Friday, February 20th. B. Riley Financial reiterated a "neutral" rating on shares of Nextdoor in a report on Thursday, February 19th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Nextdoor in a report on Tuesday. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $2.10.

Nextdoor Company Profile

Nextdoor Holdings, Inc NYSE: NXDR operates Nextdoor, a private social network designed to connect neighbors and local communities. Founded by Nirav Tolia, Sarah Leary, Prakash Janakiraman and David Wiesen, the company is headquartered in San Francisco and provides an app and web platform where residents can share news, recommendations, safety information, items for sale, and local event notices. The platform is built around verified neighborhood groups and identity-confirmation processes intended to foster trust and relevant local conversations.

Nextdoor’s core products center on the consumer-facing Nextdoor app and web experience, supplemented by tools and services for local businesses, public agencies, and advertisers.

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