MarketWise (NASDAQ:MKTW) Releases Quarterly Earnings Results, Misses Estimates By $0.89 EPS

Key Points

• MarketWise missed quarterly earnings expectations: The company reported a loss of $0.24 per share, $0.89 below the $0.65 consensus estimate, while revenue of $75.81 million also fell short of analysts’ $78.37 million forecast.
• The stock declined and the dividend was reduced: Shares fell $1.09 to $20.25, while MarketWise announced a quarterly dividend of $0.20, equivalent to an annualized yield of about 4.0%.
• Analyst sentiment remains cautious: The stock carries an average “Hold” rating and a $20 price target, with one analyst rating it Buy and another rating it Sell.

MarketWise (NASDAQ:MKTW - Get Free Report) announced its quarterly earnings results on Thursday. The newsletter publisher reported ($0.24) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.65 by ($0.89), FiscalAI reports. MarketWise had a negative return on equity of 1.00% and a net margin of 0.70%.The company had revenue of $75.81 million for the quarter, compared to analyst estimates of $78.37 million.

MarketWise Price Performance

Shares of MarketWise stock traded down $1.09 during trading on Friday, hitting $20.25. The company's stock had a trading volume of 38,009 shares, compared to its average volume of 10,737. MarketWise has a 52 week low of $13.49 and a 52 week high of $22.83. The stock has a market cap of $316.51 million, a price-to-earnings ratio of 23.01 and a beta of 0.20. The stock has a 50-day moving average price of $18.66 and a two-hundred day moving average price of $17.17.

MarketWise Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, August 19th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $0.80 annualized dividend and a dividend yield of 4.0%. MarketWise's payout ratio is currently 60.61%.

Insider Buying and Selling at MarketWise

In related news, Director Frank Porter Stansberry purchased 20,100 shares of MarketWise stock in a transaction on Wednesday, May 20th. The shares were purchased at an average price of $17.21 per share, for a total transaction of $345,921.00. Following the transaction, the director owned 355,490 shares of the company's stock, valued at approximately $6,117,982.90. This represents a 5.99% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Erik Mickels sold 3,973 shares of the company's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $19.14, for a total value of $76,043.22. Following the completion of the sale, the insider owned 75,091 shares in the company, valued at $1,437,241.74. This trade represents a 5.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have purchased 63,734 shares of company stock valued at $1,135,984. 29.95% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On MarketWise

A number of hedge funds and other institutional investors have recently made changes to their positions in MKTW. Russell Investments Group Ltd. bought a new stake in MarketWise in the second quarter valued at approximately $28,000. Wells Fargo & Company MN raised its holdings in MarketWise by 52.5% during the 4th quarter. Wells Fargo & Company MN now owns 2,199 shares of the newsletter publisher's stock worth $33,000 after purchasing an additional 757 shares during the last quarter. Raymond James Financial Inc. bought a new position in MarketWise during the 2nd quarter worth approximately $226,000. Susquehanna International Group LLP bought a new position in MarketWise during the 3rd quarter worth approximately $191,000. Finally, Renaissance Technologies LLC lifted its position in shares of MarketWise by 4.7% in the 4th quarter. Renaissance Technologies LLC now owns 19,899 shares of the newsletter publisher's stock worth $299,000 after purchasing an additional 900 shares during the period. 23.04% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have issued reports on MKTW shares. Weiss Ratings raised MarketWise from a "sell (d)" rating to a "sell (d+)" rating in a report on Tuesday, June 16th. Wall Street Zen cut MarketWise from a "buy" rating to a "hold" rating in a report on Sunday, May 10th. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $20.00.

About MarketWise

MarketWise, Inc operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters.

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