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

Key Points

• Wall Street Zen upgraded Pinterest to “Buy” from “Hold,” although the broader analyst consensus remains “Hold” with an average price target of $27.90.
• Pinterest exceeded quarterly expectations, reporting $0.43 in EPS versus $0.36 expected and $1.18 billion in revenue versus $1.15 billion forecast. Revenue increased 18.2% year over year.
• Insiders sold shares worth approximately $9.3 million over the past 90 days, while institutional investors and hedge funds own 88.81% of the company.

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

Other equities research analysts also recently issued reports about the stock. Rothschild & Co Redburn set a $23.00 target price on shares of Pinterest and gave the company a "neutral" rating in a report on Monday, April 27th. Susquehanna reaffirmed a "positive" rating on shares of Pinterest in a research note on Wednesday. Royal Bank Of Canada lifted their price target on shares of Pinterest from $23.00 to $25.00 and gave the company a "sector perform" rating in a report on Wednesday. Weiss Ratings raised shares of Pinterest from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, July 28th. Finally, Rosenblatt Securities boosted their price objective on shares of Pinterest from $24.00 to $25.00 and gave the company a "neutral" rating in a research note on Wednesday. Seventeen investment analysts have rated the stock with a Buy rating and nineteen have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $27.90.

Pinterest Stock Up 1.7%

Shares of NYSE:PINS opened at $23.73 on Friday. The company has a current ratio of 3.81, a quick ratio of 4.23 and a debt-to-equity ratio of 0.34. The firm has a market cap of $13.29 billion, a price-to-earnings ratio of 69.80, a PEG ratio of 1.27 and a beta of 0.90. The stock's 50-day moving average price is $22.12 and its two-hundred day moving average price is $20.48. Pinterest has a 12-month low of $13.84 and a 12-month high of $38.57.

Pinterest (NYSE:PINS - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.43 EPS for the quarter, beating analysts' consensus estimates of $0.36 by $0.07. The company had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.15 billion. Pinterest had a net margin of 5.46% and a return on equity of 7.49%. The company's quarterly revenue was up 18.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.33 EPS. On average, research analysts forecast that Pinterest will post 0.63 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Donnelly Julia Brau sold 59,096 shares of Pinterest stock in a transaction on Friday, August 7th. The shares were sold at an average price of $23.48, for a total transaction of $1,387,574.08. Following the transaction, the chief financial officer owned 817,409 shares in the company, valued at approximately $19,192,763.32. The trade was a 6.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Benjamin Silbermann sold 46,875 shares of Pinterest stock in a transaction on Tuesday, July 21st. The shares were sold at an average price of $22.54, for a total transaction of $1,056,562.50. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 429,816 shares of company stock worth $9,280,201 over the last ninety days. 8.09% of the stock is owned by company insiders.

Institutional Trading of Pinterest

Large investors have recently added to or reduced their stakes in the stock. Revolve Wealth Partners LLC purchased a new stake in shares of Pinterest in the fourth quarter worth about $252,000. Integrated Wealth Concepts LLC raised its holdings in shares of Pinterest by 5.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 10,943 shares of the company's stock valued at $339,000 after buying an additional 607 shares during the period. Empowered Funds LLC raised its holdings in shares of Pinterest by 45.6% during the 1st quarter. Empowered Funds LLC now owns 15,168 shares of the company's stock valued at $470,000 after buying an additional 4,748 shares during the period. Sivia Capital Partners LLC lifted its position in Pinterest by 39.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 9,347 shares of the company's stock worth $335,000 after acquiring an additional 2,649 shares in the last quarter. Finally, Jump Financial LLC acquired a new position in Pinterest during the 2nd quarter worth approximately $696,000. 88.81% of the stock is currently owned by institutional investors and hedge funds.

Pinterest News Roundup

Here are the key news stories impacting Pinterest this week:

• Positive Sentiment: Q2 results beat expectations: Pinterest reported adjusted earnings of $0.43 per share versus the $0.36 consensus estimate, while revenue reached $1.18 billion compared with expectations of $1.15 billion. Revenue grew 18.2% year over year. Pinterest's Q2 Earnings Top Estimates on AI-Led Ad Growth
• Positive Sentiment: AI is supporting monetization: AI-powered advertising, stronger monetization and record user growth helped drive the quarterly outperformance and contributed to a more constructive outlook. Spotify and Pinterest Delivered the Growth. Investors Wanted More
• Positive Sentiment: Analyst sentiment was broadly supportive: UBS initiated or reiterated a Buy rating, Cantor Fitzgerald assigned an Overweight rating, and Evercore raised its price target to $29. RBC also increased its target to $25. Guggenheim, Morgan Stanley, Robert W. Baird and Rosenblatt analysts expressed expectations for further appreciation. Evercore Boosts Pinterest Price Target
• Neutral Sentiment: Valuation remains a debate: Some analysts view the post-earnings weakness as a buying opportunity, citing Pinterest’s high-intent users, high-teens revenue growth and disciplined expense management. Pinterest: Despite North American User Choppiness, Worth The Cheap Multiples
• Negative Sentiment: Key risks limited the reaction: Investors were disappointed by at least one user-related metric, particularly choppiness in North American users. Monetization initiatives are also creating margin pressure, while Wedbush maintained a Neutral or Hold rating. PINS Q2 Deep Dive

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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