Pinterest (NYSE:PINS) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Pinterest reported Q1 EPS $0.27, beating the $0.22 estimate by $0.05, and revenue of $1.01 billion versus $965.84 million; the company posted a net margin of 9.87% and ROE of 7.95%.
• Shares traded up to $20.86 on the news; the company has a market cap of $13.87 billion and a P/E of 34.2, while Wall Street's consensus is currently a Hold with a $25.40 average target amid recent price-target cuts.
• Insider activity included Director Gokul Rajaram selling 2,100 shares under a pre-arranged 10b5-1 plan; insiders own 8.09% of the stock and institutional investors hold roughly 88.81%.

Pinterest (NYSE:PINS - Get Free Report) issued its earnings results on Monday. The company reported $0.27 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.05, FiscalAI reports. Pinterest had a return on equity of 7.95% and a net margin of 9.87%.The firm had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $965.84 million.

Pinterest Price Performance

NYSE PINS traded up $0.64 on Monday, reaching $20.86. The company had a trading volume of 26,369,386 shares, compared to its average volume of 18,051,395. The firm has a market capitalization of $13.87 billion, a PE ratio of 34.20, a P/E/G ratio of 1.36 and a beta of 0.93. Pinterest has a 1 year low of $13.84 and a 1 year high of $39.93. The firm has a 50-day moving average of $18.77 and a 200-day moving average of $23.51.

Insider Activity at Pinterest

In other news, Director Gokul Rajaram sold 2,100 shares of the business's stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $20.00, for a total transaction of $42,000.00. Following the transaction, the director directly owned 27,450 shares of the company's stock, valued at approximately $549,000. The trade was a 7.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 8.09% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Revolve Wealth Partners LLC acquired a new position in shares of Pinterest in the fourth quarter worth about $252,000. Integrated Wealth Concepts LLC lifted its stake in shares of Pinterest by 5.9% in the first quarter. Integrated Wealth Concepts LLC now owns 10,943 shares of the company's stock worth $339,000 after acquiring an additional 607 shares in the last quarter. Empowered Funds LLC lifted its stake in shares of Pinterest by 45.6% in the first quarter. Empowered Funds LLC now owns 15,168 shares of the company's stock worth $470,000 after acquiring an additional 4,748 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in shares of Pinterest by 39.5% in the second 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 shares of Pinterest in the second quarter worth about $696,000. 88.81% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on PINS. Benchmark reduced their target price on Pinterest from $34.00 to $33.00 and set a "buy" rating on the stock in a report on Thursday. Wells Fargo & Company began coverage on Pinterest in a report on Tuesday, April 7th. They issued an "overweight" rating and a $25.00 target price on the stock. Loop Capital cut Pinterest from a "buy" rating to a "hold" rating and reduced their target price for the company from $45.00 to $18.00 in a report on Friday, February 13th. Wall Street Zen cut Pinterest from a "buy" rating to a "hold" rating in a report on Saturday, April 25th. Finally, Wedbush reduced their price target on shares of Pinterest from $30.00 to $16.00 and set a "neutral" rating on the stock in a research report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eighteen have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $25.40.

About Pinterest

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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