Maplebear (NASDAQ:CART) Shares Gap Down - Should You Sell?

Key Points

• Maplebear Inc. (NASDAQ:CART) shares gapped down from a previous closing price of $50.98 to open at $46.88, ultimately trading at $45.30 with a volume of 4,753,151 shares.
• Despite the drop in stock price, several analysts have raised their price targets for Maplebear, with Citigroup increasing theirs to $65.00 and Benchmark offering a target of $67.00, reflecting a positive outlook on the company.
• Maplebear reported impressive earnings, with an EPS of $0.41 for the last quarter, exceeding projections by $0.02, and revenue rose by 11.1% year-over-year to $914 million.

Shares of Maplebear Inc. (NASDAQ:CART - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $50.98, but opened at $46.88. Maplebear shares last traded at $45.30, with a volume of 4,753,151 shares.

Analyst Upgrades and Downgrades

A number of analysts recently commented on CART shares. Stifel Nicolaus boosted their price objective on shares of Maplebear from $55.00 to $64.00 and gave the stock a "buy" rating in a report on Friday, August 8th. JMP Securities boosted their price objective on shares of Maplebear from $55.00 to $60.00 and gave the stock a "market outperform" rating in a report on Friday, August 8th. Bank of America boosted their price objective on shares of Maplebear from $53.00 to $58.00 and gave the stock a "neutral" rating in a report on Friday, August 8th. Needham & Company LLC lifted their target price on shares of Maplebear from $56.00 to $66.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Finally, Morgan Stanley lifted their target price on shares of Maplebear from $45.00 to $48.00 and gave the stock an "equal weight" rating in a research report on Friday. Nine analysts have rated the stock with a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $55.46.

Maplebear Price Performance

The firm's 50-day moving average is $46.80 and its 200 day moving average is $44.69. The stock has a market cap of $12.10 billion, a price-to-earnings ratio of 26.54, a price-to-earnings-growth ratio of 1.46 and a beta of 1.21.

Maplebear (NASDAQ:CART - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.02. Maplebear had a net margin of 13.76% and a return on equity of 15.69%. The company had revenue of $914.00 million during the quarter, compared to the consensus estimate of $896.55 million. During the same period in the previous year, the firm earned $0.20 earnings per share. Maplebear's revenue for the quarter was up 11.1% on a year-over-year basis. On average, sell-side analysts forecast that Maplebear Inc. will post 1.43 EPS for the current year.

Insider Activity at Maplebear

In other news, CEO Fidji Simo sold 6,640 shares of the company's stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $50.00, for a total value of $332,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,958,805 shares in the company, valued at approximately $97,940,250. This represents a 0.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Levien Meredith A. Kopit sold 4,225 shares of the company's stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $47.45, for a total transaction of $200,476.25. Following the completion of the transaction, the director owned 20,829 shares of the company's stock, valued at $988,336.05. This trade represents a 16.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 4,975,327 shares of company stock valued at $237,736,848 over the last quarter. Company insiders own 26.00% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CART. Viking Global Investors LP bought a new position in Maplebear during the 2nd quarter valued at $169,782,000. William Blair Investment Management LLC acquired a new stake in shares of Maplebear in the 2nd quarter worth about $151,364,000. Victory Capital Management Inc. increased its holdings in shares of Maplebear by 62.8% in the 1st quarter. Victory Capital Management Inc. now owns 7,368,232 shares of the company's stock worth $293,919,000 after acquiring an additional 2,841,559 shares during the period. Altimeter Capital Management LP bought a new position in Maplebear in the 4th quarter valued at about $105,108,000. Finally, Norges Bank bought a new position in Maplebear in the 2nd quarter valued at about $97,351,000. 63.09% of the stock is currently owned by institutional investors.

About Maplebear

Maplebear Inc, doing business as Instacart, engages in the provision of online grocery shopping services to households in North America. It sells and delivers grocery products, as well as pickup services through a mobile application and website. It also operates virtual convenience stores; and provides software-as-a-service solutions to retailers.