Mizuho Cuts eToro Group (NASDAQ:ETOR) Price Target to $52.00

Key Points

• Mizuho cut eToro’s price target from $60 to $52 but maintained an “outperform” rating, implying substantial upside from the stock’s prior close. The analyst consensus remains “Moderate Buy,” with an average target of $54.47.
• eToro reported quarterly EPS of $0.68, beating the $0.61 consensus estimate, although revenue declined 23.9% year over year. Shares opened at $29.33, down sharply and well below their 50-day moving average.
• Analysts and management continue to point to growth opportunities, including increased customer activity, digital assets and the planned acquisition of TradeZero for up to $231 million. However, investors have raised concerns about acquisition costs, potential dilution and integration risks.

eToro Group (NASDAQ:ETOR - Get Free Report) had its price objective decreased by equities researchers at Mizuho from $60.00 to $52.00 in a report issued on Wednesday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Mizuho's target price suggests a potential upside of 77.29% from the company's previous close.

Several other brokerages have also recently weighed in on ETOR. Needham & Company LLC dropped their price objective on eToro Group from $66.00 to $53.00 and set a "buy" rating for the company in a report on Wednesday. Cantor Fitzgerald reduced their target price on shares of eToro Group from $61.00 to $53.00 and set an "overweight" rating on the stock in a research note on Wednesday. TD Cowen boosted their price target on shares of eToro Group from $44.00 to $52.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Canaccord Genuity Group reaffirmed a "buy" rating and issued a $65.00 price objective on shares of eToro Group in a research note on Tuesday, June 9th. Finally, Susquehanna lifted their target price on shares of eToro Group from $55.00 to $57.00 and gave the stock a "positive" rating in a report on Wednesday, May 13th. Ten investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $54.47.

eToro Group Stock Down 13.7%

NASDAQ ETOR opened at $29.33 on Wednesday. The stock has a fifty day moving average of $37.98 and a 200-day moving average of $34.95. The stock has a market capitalization of $2.43 billion, a P/E ratio of 12.27, a price-to-earnings-growth ratio of 0.74 and a beta of 1.68. eToro Group has a 52 week low of $24.74 and a 52 week high of $56.48. The company has a debt-to-equity ratio of 0.02, a quick ratio of 3.92 and a current ratio of 3.92.

eToro Group (NASDAQ:ETOR - Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $0.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.07. The business had revenue of $1.59 billion for the quarter. eToro Group had a return on equity of 19.79% and a net margin of 1.90%.The company's revenue was down 23.9% compared to the same quarter last year. During the same period last year, the company earned $0.56 EPS. On average, equities research analysts forecast that eToro Group will post 2.81 EPS for the current year.

Insider Buying and Selling

In related news, Director Shalev Eddy sold 100,000 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $41.26, for a total value of $4,126,000.00. Following the sale, the director directly owned 296,779 shares in the company, valued at $12,245,101.54. This trade represents a 25.20% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Hedva Ber sold 55,160 shares of eToro Group stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $41.90, for a total transaction of $2,311,204.00. Following the transaction, the chief executive officer directly owned 20,660 shares in the company, valued at $865,654. The trade was a 72.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of eToro Group

A number of large investors have recently made changes to their positions in ETOR. Caitong International Asset Management Co. Ltd bought a new position in eToro Group during the fourth quarter worth about $25,000. EverSource Wealth Advisors LLC raised its position in shares of eToro Group by 365.3% during the first quarter. EverSource Wealth Advisors LLC now owns 926 shares of the company's stock worth $28,000 after purchasing an additional 727 shares during the period. Newbridge Financial Services Group Inc. lifted its holdings in shares of eToro Group by 45.1% during the 3rd quarter. Newbridge Financial Services Group Inc. now owns 1,785 shares of the company's stock valued at $74,000 after purchasing an additional 555 shares in the last quarter. State of Wyoming grew its position in shares of eToro Group by 180.0% in the 1st quarter. State of Wyoming now owns 1,932 shares of the company's stock valued at $58,000 after purchasing an additional 1,242 shares during the period. Finally, BNP Paribas Financial Markets acquired a new position in shares of eToro Group in the 2nd quarter valued at approximately $184,000.

More eToro Group News

Here are the key news stories impacting eToro Group this week:

• Positive Sentiment: Profit and revenue exceeded estimates. eToro reported adjusted diluted earnings of $0.68 per share, above the $0.61 consensus, while reported revenue of approximately $229 million also surpassed expectations. EPS increased from $0.56 in the year-ago quarter. Reuters earnings report
• Positive Sentiment: Operating momentum remained favorable. Management highlighted record assets under administration, growth in funded accounts and increased customer activity. CEO Yoni Assia also said customers are increasingly using artificial-intelligence agents to trade around the clock, potentially expanding engagement and transaction revenue over time. eToro Q2 earnings call highlights
• Positive Sentiment: TradeZero could accelerate U.S. expansion. eToro agreed to acquire U.S.-focused online brokerage TradeZero in a cash-and-stock transaction valued at up to $231 million. The deal would broaden eToro’s U.S. offering and could improve its competitive position in equities and options trading. TradeZero acquisition announcement
• Neutral Sentiment: Management is emphasizing digital assets and international growth. The earnings presentation and call focused on customer expansion, cryptocurrency activity and product development, but the long-term financial impact of these initiatives remains uncertain. eToro Q2 results presentation
• Negative Sentiment: Investors reacted negatively to the acquisition’s cost and risks. The transaction requires up to $231 million and may increase integration expenses, dilute shareholders through the stock component and divert management attention. Shares fell sharply following the announcement despite the earnings beat. eToro shares and TradeZero acquisition
• Negative Sentiment: Revenue declined year over year. Quarterly revenue was reported down 23.9% from the prior-year period, tempering the earnings beat and raising concerns about the sustainability of growth, particularly if trading activity or cryptocurrency volumes weaken. eToro Q2 earnings and revenue report

About eToro Group

eToro Group Ltd. NASDAQ: ETOR is a global multi-asset brokerage company known for its social trading platform. The company enables individual and institutional investors to trade and invest in a broad range of financial instruments, including stocks, exchange-traded funds (ETFs), commodities, indices, forex, and cryptocurrencies. eToro’s platform integrates a user-friendly interface with advanced trading tools, catering to both novice and experienced market participants.

A distinguishing feature of eToro’s offering is its CopyTrader™ functionality, which allows users to replicate the trades of selected investors on the platform.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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