Nextdoor (NYSE:NXDR) Announces Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Nextdoor reported quarterly EPS of ($0.01), beating the consensus estimate of ($0.02) by $0.01, though the company remains unprofitable with a negative 16.47% net margin.
• Nextdoor shares rose 1.5% to $2.31, giving the company an approximately $879 million market capitalization; the stock has traded between $1.33 and $3.72 over the past year.
• Analyst sentiment remains cautious, with an average rating of “Reduce” and an average price target of $2.17. Institutional investors own 35.66% of the stock, while insiders own 33.46%.

Nextdoor (NYSE:NXDR - Get Free Report) announced its earnings results on Tuesday. The company reported ($0.01) EPS for the quarter, topping the consensus estimate of ($0.02) by $0.01, Zacks reports. Nextdoor had a negative net margin of 16.47% and a negative return on equity of 9.22%.

Nextdoor Trading Up 1.5%

Shares of Nextdoor stock traded up $0.04 during midday trading on Tuesday, hitting $2.31. The company had a trading volume of 2,617,183 shares, compared to its average volume of 3,290,267. Nextdoor has a 1-year low of $1.33 and a 1-year high of $3.72. The company's 50 day moving average price is $2.23. The company has a market cap of $879.10 million, a PE ratio of -20.95 and a beta of 1.36.

Insider Buying and Selling

In related news, General Counsel Sophia Schwartz sold 28,616 shares of the company's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $2.25, for a total transaction of $64,386.00. Following the completion of the transaction, the general counsel directly owned 307,757 shares in the company, valued at $692,453.25. This represents a 8.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 33.46% of the stock is currently owned by insiders.

Institutional Trading of Nextdoor

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Ieq Capital LLC acquired a new position in shares of Nextdoor during the fourth quarter valued at about $19,986,000. ARK Investment Management LLC acquired a new stake in Nextdoor during the fourth quarter worth about $16,335,000. Geode Capital Management LLC bought a new position in Nextdoor during the fourth quarter valued at about $11,083,000. State Street Corp bought a new position in Nextdoor during the fourth quarter valued at about $10,475,000. Finally, Westerly Capital Management LLC bought a new position in Nextdoor during the fourth quarter valued at about $9,450,000. 35.66% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on NXDR shares. The Goldman Sachs Group restated a "neutral" rating and set a $2.25 price target on shares of Nextdoor in a report on Thursday, May 7th. Wall Street Zen upgraded Nextdoor from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Nextdoor in a research report on Friday, July 10th. Three investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $2.17.

About Nextdoor

Nextdoor Holdings, Inc NYSE: NXDR operates Nextdoor, a private social network designed to connect neighbors and local communities. Founded by Nirav Tolia, Sarah Leary, Prakash Janakiraman and David Wiesen, the company is headquartered in San Francisco and provides an app and web platform where residents can share news, recommendations, safety information, items for sale, and local event notices. The platform is built around verified neighborhood groups and identity-confirmation processes intended to foster trust and relevant local conversations.

Nextdoor’s core products center on the consumer-facing Nextdoor app and web experience, supplemented by tools and services for local businesses, public agencies, and advertisers.

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