NerdWallet (NASDAQ:NRDS) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded NerdWallet from a "hold" to a "strong sell", and several other firms have trimmed ratings or price targets (e.g., Morgan Stanley to "underweight" with a $9 target); MarketBeat's consensus remains a "Hold" with an average price target of $15.00.
• NerdWallet beat the quarter with $0.19 EPS vs. $0.17 expected and revenue of $225.4M (+22.6% YoY), yet the stock trades near $10.89 with a market cap of about $727M and a 12‑month range of $8.34–$16.24.
• Insiders have sold 86,043 shares (~$901k) in the past 90 days, though company insiders still own a majority stake at 52.75%.

NerdWallet (NASDAQ:NRDS - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Monday,Zacks.com reports.

A number of other equities research analysts have also recently commented on NRDS. Truist Financial cut their price target on shares of NerdWallet from $19.00 to $18.00 and set a "buy" rating on the stock in a report on Thursday, February 26th. Wall Street Zen downgraded NerdWallet from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Morgan Stanley cut NerdWallet from an "equal weight" rating to an "underweight" rating and decreased their price target for the stock from $14.00 to $9.00 in a research note on Friday, March 13th. Finally, Oppenheimer dropped their price objective on NerdWallet from $18.00 to $15.00 and set an "outperform" rating on the stock in a research report on Wednesday, March 4th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $15.00.

NerdWallet Trading Down 0.1%

Shares of NASDAQ:NRDS opened at $10.89 on Monday. The stock has a fifty day simple moving average of $10.57 and a two-hundred day simple moving average of $12.10. The stock has a market capitalization of $727.34 million, a price-to-earnings ratio of 17.02 and a beta of 1.34. NerdWallet has a 12-month low of $8.34 and a 12-month high of $16.24.

NerdWallet (NASDAQ:NRDS - Get Free Report) last released its earnings results on Wednesday, February 25th. The company reported $0.19 EPS for the quarter, topping analysts' consensus estimates of $0.17 by $0.02. The firm had revenue of $225.40 million for the quarter, compared to analysts' expectations of $211.37 million. NerdWallet had a return on equity of 12.66% and a net margin of 5.82%.The company's quarterly revenue was up 22.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.51 earnings per share. As a group, equities research analysts predict that NerdWallet will post 0.88 EPS for the current year.

Insiders Place Their Bets

In other news, insider Samuel Yount sold 71,988 shares of the firm's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $10.32, for a total value of $742,916.16. Following the transaction, the insider directly owned 173,973 shares in the company, valued at $1,795,401.36. This trade represents a 29.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CAO Nicholas Tatum sold 10,151 shares of NerdWallet stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $11.45, for a total value of $116,228.95. Following the completion of the sale, 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 disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 86,043 shares of company stock worth $901,317. Company insiders own 52.75% of the company's stock.

Institutional Investors Weigh In On NerdWallet

Large investors have recently made changes to their positions in the company. Covestor Ltd purchased a new stake in shares of NerdWallet during the 4th quarter valued at about $34,000. New York State Teachers Retirement System purchased a new position in shares of NerdWallet in the first quarter worth approximately $41,000. Tower Research Capital LLC TRC boosted its holdings in shares of NerdWallet by 37.1% in the second quarter. Tower Research Capital LLC TRC now owns 3,893 shares of the company's stock worth $43,000 after buying an additional 1,054 shares during the last quarter. Polymer Capital Management US LLC bought a new stake in NerdWallet during the third quarter valued at approximately $111,000. Finally, Olympiad Research LP bought a new stake in NerdWallet during the third quarter valued at approximately $119,000. 38.81% of the stock is currently owned by institutional investors.

NerdWallet Company Profile

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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