Nextdoor (NYSE:NXDR) Shares Gap Up After Strong Earnings

Key Points

• Nextdoor shares jumped after the company reported quarterly EPS of $(0.01), beating estimates by $0.01, while revenue of $74.55 million exceeded forecasts of $72.10 million.
• Despite the earnings beat, analyst sentiment remains cautious: the stock carries a consensus “Reduce” rating and a $2.17 price target, below its latest trading price of $2.60.
• Nextdoor’s ownership includes 33.46% held by company insiders and 35.66% held by institutional investors; its general counsel recently sold 28,616 shares under a pre-arranged trading plan.

Nextdoor Holdings, Inc. (NYSE:NXDR - Get Free Report) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $2.31, but opened at $2.52. Nextdoor shares last traded at $2.60, with a volume of 1,433,905 shares changing hands.

The company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.02) by $0.01. Nextdoor had a negative return on equity of 9.22% and a negative net margin of 16.47%.The firm had revenue of $74.55 million for the quarter, compared to analyst estimates of $72.10 million.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on NXDR shares. Wall Street Zen raised Nextdoor from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $2.25 price target on shares of Nextdoor in a research note on Thursday, May 7th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Nextdoor in a report on Friday, July 10th. Three equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Nextdoor has an average rating of "Reduce" and a consensus price target of $2.17.

Insider Buying and Selling at Nextdoor

In related news, General Counsel Sophia Schwartz sold 28,616 shares of the firm's stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $2.25, for a total transaction of $64,386.00. Following the transaction, the general counsel owned 307,757 shares in the company, valued at $692,453.25. This trade represents a 8.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 33.46% of the company's stock.

Institutional Investors Weigh In On Nextdoor

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Savvy Advisors Inc. acquired a new stake in shares of Nextdoor during the fourth quarter worth about $45,000. Sumitomo Mitsui Trust Group Inc. acquired a new stake in Nextdoor during the 4th quarter worth approximately $24,990,000. Westside Investment Management Inc. purchased a new position in shares of Nextdoor in the 4th quarter valued at approximately $55,000. Farther Finance Advisors LLC purchased a new position in shares of Nextdoor in the 4th quarter valued at approximately $25,000. Finally, CWM LLC acquired a new position in shares of Nextdoor in the fourth quarter valued at approximately $272,000. 35.66% of the stock is owned by hedge funds and other institutional investors.

Nextdoor Stock Performance

The firm has a 50 day moving average of $2.23. The company has a market cap of $976.35 million, a price-to-earnings ratio of -23.27 and a beta of 1.36.

Nextdoor Company Profile

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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