IAC (NASDAQ:IAC) Shares Gap Down - What's Next?

Key Points

• IAC Inc. shares gapped down from a closing price of $39.52 to open at $37.00, subsequently trading at $33.45.
• UBS Group and Citigroup among others have recently lowered their price targets for IAC, with UBS setting a new target of $38.00 and maintaining a "neutral" rating.
• IAC's recent earnings report showed $2.57 earnings per share, exceeding estimates, but revenue of $586.93 million fell short of analyst expectations.

IAC Inc. (NASDAQ:IAC - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $39.52, but opened at $37.00. IAC shares last traded at $33.45, with a volume of 398,052 shares changing hands.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. UBS Group cut their price target on IAC from $54.00 to $38.00 and set a "neutral" rating for the company in a research note on Wednesday, May 7th. Citigroup cut their target price on IAC from $47.55 to $45.00 and set a "buy" rating on the stock in a research report on Friday, April 25th. KeyCorp lowered their price target on IAC from $64.00 to $49.00 and set an "overweight" rating for the company in a report on Monday, May 5th. Cowen reissued a "buy" rating on shares of IAC in a research note on Monday, May 5th. Finally, Piper Sandler reduced their target price on IAC from $54.00 to $44.00 and set a "neutral" rating for the company in a report on Wednesday, May 7th. Two research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $54.08.

IAC Trading Down 14.0%

The company has a market capitalization of $2.52 billion, a P/E ratio of -3.51 and a beta of 1.23. The company has a 50-day simple moving average of $38.35 and a 200 day simple moving average of $39.90. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.70 and a current ratio of 2.70.

IAC (NASDAQ:IAC - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The company reported $2.57 earnings per share for the quarter, topping the consensus estimate of ($0.30) by $2.87. The company had revenue of $586.93 million for the quarter, compared to analyst estimates of $601.38 million. IAC had a negative return on equity of 11.11% and a negative net margin of 23.25%. IAC's revenue for the quarter was down 7.5% compared to the same quarter last year. During the same quarter last year, the firm earned ($1.71) EPS. Sell-side analysts expect that IAC Inc. will post 0.43 earnings per share for the current year.

Institutional Trading of IAC

Several institutional investors have recently bought and sold shares of the stock. JPMorgan Chase & Co. boosted its stake in IAC by 11.4% in the 1st quarter. JPMorgan Chase & Co. now owns 5,451,614 shares of the company's stock valued at $250,447,000 after buying an additional 557,134 shares in the last quarter. Southeastern Asset Management Inc. TN boosted its stake in IAC by 21.3% in the fourth quarter. Southeastern Asset Management Inc. TN now owns 2,751,940 shares of the company's stock worth $118,719,000 after purchasing an additional 483,613 shares in the last quarter. Davis Selected Advisers boosted its stake in IAC by 0.8% in the first quarter. Davis Selected Advisers now owns 2,657,782 shares of the company's stock worth $122,099,000 after purchasing an additional 22,158 shares in the last quarter. Corvex Management LP boosted its stake in IAC by 61.8% in the fourth quarter. Corvex Management LP now owns 2,410,370 shares of the company's stock worth $103,983,000 after purchasing an additional 920,875 shares in the last quarter. Finally, ArrowMark Colorado Holdings LLC boosted its stake in IAC by 5.3% in the fourth quarter. ArrowMark Colorado Holdings LLC now owns 1,669,665 shares of the company's stock worth $72,029,000 after purchasing an additional 84,121 shares in the last quarter. Institutional investors and hedge funds own 88.90% of the company's stock.

About IAC

IAC Inc, together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.