Pinterest (NYSE:PINS) Raised to Buy at Wall Street Zen

Key Points

• Pinterest was upgraded to “buy” by Wall Street Zen, adding to a mixed but generally cautious analyst backdrop. The stock still carries an average Hold rating, with an average price target of $27.42.
• The company recently beat earnings expectations in its latest quarterly report, posting EPS of $0.27 versus the $0.22 consensus and revenue of $1.01 billion, up 17.8% year over year.
• Shares slipped slightly in recent trading, while insider selling and heavy institutional ownership remain notable. Pinterest stock was down 0.7% to $22.53, and institutional investors own 88.81% of the company.

Pinterest (NYSE:PINS - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Sunday.

Several other equities research analysts also recently weighed in on PINS. Royal Bank Of Canada boosted their target price on shares of Pinterest from $17.00 to $23.00 and gave the stock a "sector perform" rating in a research report on Tuesday, May 5th. Morgan Stanley lifted their price target on Pinterest from $27.00 to $30.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 5th. DA Davidson began coverage on Pinterest in a report on Wednesday. They issued a "buy" rating and a $26.00 price objective for the company. Piper Sandler restated a "neutral" rating and set a $26.00 price objective (up from $21.00) on shares of Pinterest in a research note on Tuesday, May 5th. Finally, Citigroup increased their target price on Pinterest from $19.00 to $25.00 and gave the stock a "neutral" rating in a report on Tuesday, May 5th. Seventeen analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Pinterest currently has an average rating of "Hold" and an average price target of $27.42.

Pinterest Stock Down 0.7%

Shares of Pinterest stock traded down $0.17 on Friday, hitting $22.53. 9,855,983 shares of the company's stock traded hands, compared to its average volume of 14,842,024. Pinterest has a 52-week low of $13.84 and a 52-week high of $39.93. The company has a quick ratio of 4.23, a current ratio of 4.23 and a debt-to-equity ratio of 0.34. The stock has a market cap of $12.62 billion, a P/E ratio of 46.94, a PEG ratio of 1.27 and a beta of 0.89. The firm's 50-day moving average is $20.76 and its 200 day moving average is $20.91.

Pinterest (NYSE:PINS - Get Free Report) last issued its quarterly earnings results on Monday, May 4th. The company reported $0.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.05. Pinterest had a net margin of 7.64% and a return on equity of 8.26%. The business had revenue of $1.01 billion during the quarter, compared to analyst estimates of $965.84 million. During the same quarter in the previous year, the firm earned $0.23 earnings per share. The business's revenue was up 17.8% compared to the same quarter last year. Equities analysts anticipate that Pinterest will post 0.66 earnings per share for the current year.

Insider Buying and Selling at Pinterest

In other news, insider Wanjiku Juanita Walcott sold 27,337 shares of the company's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $20.46, for a total transaction of $559,315.02. Following the completion of the transaction, the insider directly owned 724,673 shares of the company's stock, valued at approximately $14,826,809.58. This represents a 3.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gokul Rajaram sold 2,100 shares of the firm's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $20.00, for a total value of $42,000.00. Following the completion of the sale, the director directly owned 27,450 shares in the company, valued at approximately $549,000. This trade represents a 7.11% 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. Insiders sold a total of 325,945 shares of company stock worth $6,878,065 over the last ninety days. Company insiders own 8.09% of the company's stock.

Hedge Funds Weigh In On Pinterest

Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its position in Pinterest by 1.8% in the 4th quarter. Vanguard Group Inc. now owns 62,056,069 shares of the company's stock valued at $1,606,632,000 after purchasing an additional 1,069,646 shares during the last quarter. Price T Rowe Associates Inc. MD grew its position in Pinterest by 15.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 27,809,693 shares of the company's stock worth $719,994,000 after purchasing an additional 3,669,476 shares during the last quarter. Victory Capital Management Inc. increased its stake in shares of Pinterest by 30.5% in the fourth quarter. Victory Capital Management Inc. now owns 26,808,870 shares of the company's stock valued at $694,082,000 after purchasing an additional 6,258,628 shares during the period. State Street Corp increased its stake in shares of Pinterest by 52.6% in the fourth quarter. State Street Corp now owns 21,492,169 shares of the company's stock valued at $556,432,000 after purchasing an additional 7,412,213 shares during the period. Finally, Ameriprise Financial Inc. raised its holdings in shares of Pinterest by 10.7% during the third quarter. Ameriprise Financial Inc. now owns 19,732,086 shares of the company's stock valued at $634,767,000 after buying an additional 1,913,668 shares during the last quarter. Institutional investors and hedge funds own 88.81% of the company's stock.

Pinterest Company Profile

Pinterest, Inc operates a visual discovery platform that helps users find inspiration and ideas for projects ranging from home design and fashion to cooking and travel. Users create and curate "Pins" — images or videos linked to content — organized on thematic boards. The service is available through its website and mobile applications and emphasizes personalized recommendations and visual search to surface relevant content based on user interests.

The company's primary revenue model is advertising, offering promoted content formats that integrate into user feeds and search results.

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