NerdWallet (NASDAQ:NRDS) Shares Gap Down - Should You Sell?

Key Points

• NerdWallet shares gapped down, opening at $9.15 after a $11.20 close and last trading near $9.49 as investors reacted to the company’s guidance and analyst moves.
• Q1 was mixed: EPS beat at $0.29 vs. $0.25 consensus while revenue rose 6% to $222.2M but missed estimates (~$227.6M), and management issued weaker Q2 revenue guidance of ~$186M–$202M versus the Street’s ~ $205M.
• Negative sentiment amplified by analysts and insiders: Zacks downgraded to "strong sell" and Morgan Stanley cut to "underweight" (PT lowered to $9), while insiders sold roughly 86,000 shares recently despite insiders owning 52.75% of the company.

Shares of NerdWallet, Inc. (NASDAQ:NRDS - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $11.20, but opened at $9.15. NerdWallet shares last traded at $9.4940, with a volume of 302,976 shares.

More NerdWallet News

Here are the key news stories impacting NerdWallet this week:

• Positive Sentiment: Q1 EPS beat expectations — NerdWallet reported $0.29/share vs. the Zacks consensus of $0.25, and turned profitable versus breakeven a year ago. NerdWallet, Inc. (NRDS) Q1 Earnings Top Estimates
• Neutral Sentiment: Revenue grew 6% YoY to $222.2M, showing underlying growth, but it missed analyst estimates (~$227.6M), which tempered the upside from the EPS beat. NerdWallet Reports First Quarter Results
• Neutral Sentiment: Management commentary and color are available in the earnings‑call transcripts; investors will be watching guidance detail and margin commentary from the call. NerdWallet Q1 2026 Earnings Call Transcript
• Negative Sentiment: Management issued weaker Q2 revenue guidance (~$186M–$202M) below the Street (~$205M), which is the primary driver of the stock decline as investors punish lower near‑term growth expectations. NerdWallet NASDAQ: NRDS Reports Strong Q1 CY2026 But Stock Drops
• Negative Sentiment: Zacks downgraded NerdWallet to "strong sell" after the print and guidance, adding selling pressure and negative analyst sentiment. Zacks.com

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on NRDS shares. Morgan Stanley cut NerdWallet from an "equal weight" rating to an "underweight" rating and dropped their price objective for the company from $14.00 to $9.00 in a research report on Friday, March 13th. Wall Street Zen cut shares of NerdWallet from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 2nd. Zacks Research downgraded shares of NerdWallet from a "hold" rating to a "strong sell" rating in a report on Monday. Weiss Ratings reiterated a "hold (c)" rating on shares of NerdWallet in a research note on Monday. Finally, Oppenheimer decreased their price objective on shares of NerdWallet from $18.00 to $15.00 and set an "outperform" rating for the company in a report on Wednesday, March 4th. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $15.00.

NerdWallet Price Performance

The business has a 50-day moving average of $10.60 and a 200 day moving average of $12.10. The company has a market cap of $646.96 million, a PE ratio of 15.14 and a beta of 1.34.

NerdWallet (NASDAQ:NRDS - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.25 by $0.04. The company had revenue of $222.20 million during the quarter, compared to analyst estimates of $227.63 million. NerdWallet had a net margin of 5.82% and a return on equity of 12.66%. The firm's revenue for the quarter was up 6.2% compared to the same quarter last year. On average, equities analysts predict that NerdWallet, Inc. will post 0.88 EPS for the current fiscal year.

Insider Activity

In other news, CAO Nicholas Tatum sold 10,151 shares of NerdWallet stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $11.45, for a total transaction of $116,228.95. Following the transaction, the chief accounting officer directly owned 47,202 shares of the company's stock, valued at $540,462.90. The trade was a 17.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Samuel Yount sold 71,988 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $10.32, for a total transaction of $742,916.16. Following the completion of the sale, the insider directly owned 173,973 shares of the company's stock, valued at $1,795,401.36. This represents a 29.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 86,043 shares of company stock worth $901,317 in the last ninety days. Corporate insiders own 52.75% of the company's stock.

Institutional Investors Weigh In On NerdWallet

Institutional investors and hedge funds have recently bought and sold shares of the business. Covestor Ltd purchased a new stake in shares of NerdWallet during the fourth quarter worth about $34,000. New York State Teachers Retirement System purchased a new stake in NerdWallet during the 1st quarter valued at approximately $41,000. Tower Research Capital LLC TRC raised its position in shares of NerdWallet by 37.1% during the second quarter. Tower Research Capital LLC TRC now owns 3,893 shares of the company's stock valued at $43,000 after buying an additional 1,054 shares during the last quarter. Polymer Capital Management US LLC purchased a new position in shares of NerdWallet in the third quarter worth $111,000. Finally, Olympiad Research LP bought a new position in shares of NerdWallet during the third quarter worth $119,000. 38.81% of the stock is owned by institutional investors.

About NerdWallet

NerdWallet NASDAQ: NRDS is a personal finance company that offers independent guidance and comparison tools to help consumers make informed financial decisions. Through its website and mobile application, NerdWallet provides a wide range of content, including articles, calculators and reviews covering credit cards, mortgages, personal loans, banking products, investing, insurance and taxes. The platform aggregates partner offers to enable side-by-side comparisons, while editorially maintaining objectivity to support users in identifying the products that best suit their individual needs.

Founded in 2009 by Tim Chen and Jacob Gibson, NerdWallet is headquartered in San Francisco and serves consumers primarily in the United States, with additional localized offerings in Canada and the United Kingdom.

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