Fiverr International (NYSE:FVRR) Shares Gap Down Following Weak Earnings

Key Points

• Fiverr International experienced a significant stock gap down from $25.01 to $22.76 after reporting weaker-than-expected earnings of $0.69 per share, missing the analysts' consensus estimate of $0.72.
• The company's revenue increased by 14.7% year-over-year to $108.65 million, exceeding the consensus estimate, despite the EPS miss.
• Analysts generally remain optimistic, with several firms raising their price targets; the current consensus rating for Fiverr International is a "Moderate Buy" with an average price target of $36.00.

Fiverr International (NYSE:FVRR - Get Free Report)'s share price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $25.01, but opened at $22.76. Fiverr International shares last traded at $21.99, with a volume of 841,515 shares changing hands.

The company reported $0.69 EPS for the quarter, missing the consensus estimate of $0.72 by ($0.03). The business had revenue of $108.65 million during the quarter, compared to the consensus estimate of $107.75 million. Fiverr International had a return on equity of 12.29% and a net margin of 4.34%. The firm's quarterly revenue was up 14.7% on a year-over-year basis. During the same period last year, the business posted $0.58 earnings per share.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Scotiabank raised their target price on shares of Fiverr International from $31.00 to $34.00 and gave the stock a "sector outperform" rating in a report on Thursday, May 8th. UBS Group lowered their price target on shares of Fiverr International from $32.00 to $25.00 and set a "neutral" rating on the stock in a research report on Thursday. Needham & Company LLC reduced their price target on shares of Fiverr International from $36.00 to $32.00 and set a "buy" rating on the stock in a research report on Thursday. Citigroup cut their target price on shares of Fiverr International from $40.00 to $33.00 and set a "buy" rating on the stock in a research note on Thursday. Finally, Wall Street Zen downgraded Fiverr International from a "strong-buy" rating to a "buy" rating in a report on Sunday, June 29th. Five research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $33.00.

Hedge Funds Weigh In On Fiverr International

Institutional investors and hedge funds have recently made changes to their positions in the company. Huntington National Bank lifted its stake in shares of Fiverr International by 38.3% in the 4th quarter. Huntington National Bank now owns 1,465 shares of the company's stock valued at $46,000 after acquiring an additional 406 shares during the last quarter. KLP Kapitalforvaltning AS bought a new stake in shares of Fiverr International during the fourth quarter valued at approximately $187,000. MQS Management LLC purchased a new stake in Fiverr International in the second quarter worth approximately $248,000. Envestnet Asset Management Inc. purchased a new position in shares of Fiverr International during the 2nd quarter valued at $262,000. Finally, Quantbot Technologies LP lifted its stake in Fiverr International by 5,825.9% in the 1st quarter. Quantbot Technologies LP now owns 11,911 shares of the company's stock worth $282,000 after purchasing an additional 11,710 shares in the last quarter. Institutional investors and hedge funds own 59.00% of the company's stock.

Fiverr International Price Performance

The firm's fifty day moving average is $29.05 and its 200 day moving average is $28.37. The company has a market capitalization of $787.58 million, a P/E ratio of 45.66 and a beta of 1.54. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.20 and a current ratio of 1.20.

About Fiverr International

Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company's platform includes various categories in ten verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and tech, business, data, lifestyle, and photography.