GoodRx (NASDAQ:GDRX) Reaches New 52-Week Low on Disappointing Earnings

Key Points

• GoodRx's stock hit a new 52-week low at $3.61 following disappointing earnings, which included an earnings per share of $0.09 that fell short of analysts' expectations.
• Wall Street analysts have downgraded their price targets for GoodRx, with notable reductions by firms such as Goldman Sachs and Truist Financial, reflecting cautious sentiment towards the company's future performance.
• Institutional investors hold 63.77% of GoodRx's stock, and recent activity includes new positions and increases in shares held by several firms, indicating ongoing interest despite recent stock performance.

GoodRx Holdings, Inc. (NASDAQ:GDRX - Get Free Report) shares hit a new 52-week low during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $3.61 and last traded at $3.63, with a volume of 943821 shares traded. The stock had previously closed at $4.34.

The company reported $0.09 earnings per share for the quarter, missing analysts' consensus estimates of $0.10 by ($0.01). The company had revenue of $203.07 million during the quarter, compared to analysts' expectations of $205.72 million. GoodRx had a return on equity of 8.86% and a net margin of 4.33%. GoodRx's quarterly revenue was up 1.2% compared to the same quarter last year. During the same period last year, the firm posted $0.08 earnings per share.

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. Raymond James Financial downgraded GoodRx from a "strong-buy" rating to an "outperform" rating in a research report on Friday. Wells Fargo & Company dropped their price objective on GoodRx from $8.00 to $7.00 and set an "overweight" rating on the stock in a report on Tuesday, April 29th. UBS Group cut their target price on GoodRx from $6.00 to $5.25 and set a "neutral" rating for the company in a research note on Tuesday, May 13th. Finally, The Goldman Sachs Group reduced their target price on GoodRx from $6.00 to $5.00 and set a "neutral" rating for the company in a report on Friday, May 9th. Five investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $6.55.

Insider Transactions at GoodRx

In related news, major shareholder Equity Vii L.P. Spectrum sold 10,677 shares of the company's stock in a transaction that occurred on Thursday, July 3rd. The stock was sold at an average price of $4.80, for a total value of $51,249.60. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 4.53% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On GoodRx

Institutional investors have recently made changes to their positions in the company. 8 Knots Management LLC bought a new stake in shares of GoodRx in the 1st quarter worth $8,106,000. EVR Research LP boosted its position in shares of GoodRx by 243.3% during the first quarter. EVR Research LP now owns 1,300,000 shares of the company's stock valued at $5,733,000 after buying an additional 921,337 shares during the last quarter. Jacobs Levy Equity Management Inc. increased its holdings in GoodRx by 303.3% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,061,461 shares of the company's stock worth $4,936,000 after buying an additional 798,261 shares in the last quarter. Pathway Capital Management LP bought a new stake in GoodRx in the 2nd quarter worth about $2,906,000. Finally, Raymond James Financial Inc. purchased a new position in GoodRx in the 4th quarter worth about $2,500,000. Hedge funds and other institutional investors own 63.77% of the company's stock.

GoodRx Price Performance

The company's 50 day simple moving average is $4.61 and its 200-day simple moving average is $4.56. The company has a current ratio of 4.21, a quick ratio of 5.23 and a debt-to-equity ratio of 0.75. The firm has a market cap of $1.24 billion, a P/E ratio of 34.70, a PEG ratio of 1.54 and a beta of 1.24.

GoodRx Company Profile

GoodRx Holdings, Inc, together with its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the United States. The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing, and access to negotiated prices.