Pinterest (NYSE:PINS) Shares Down 6.6% - Time to Sell?

Key Points

• Pinterest shares fell 6.6% on Tuesday, trading as low as $18.56 before closing at $18.61, well below the previous close of $19.93.
• The stock is facing ongoing class action lawsuit activity, with multiple law firms soliciting investors in a securities fraud case that alleges Pinterest misled shareholders about business resilience.
• Despite the drop, Pinterest recently beat quarterly earnings and revenue estimates, and analysts remain mixed overall with a consensus rating of Hold and an average price target of $27.40.

Pinterest, Inc. (NYSE:PINS - Get Free Report)'s share price fell 6.6% during trading on Tuesday . The stock traded as low as $18.56 and last traded at $18.6130. 7,864,932 shares traded hands during mid-day trading, a decline of 58% from the average session volume of 18,686,174 shares. The stock had previously closed at $19.93.

More Pinterest News

Here are the key news stories impacting Pinterest this week:

• Negative Sentiment: Several firms, including Bronstein, Gross, Portnoy, Faruqi & Faruqi, Bragar Eagel & Squire, Rosen, Levi & Korsinsky, and Schall, have issued reminders and solicitations tied to a class action alleging Pinterest misled investors about business resilience and caused shareholder losses. Article: Bronstein, Gewirtz & Grossman LLC Urges Pinterest, Inc. Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: The lawsuits increase legal and reputational risk for Pinterest and may keep investor attention focused on prior disclosures and potential settlement costs. Article: PINS UPCOMING DEADLINE : The Gross Law Firm Alerts Pinterest, Inc. Stockholders of Securities Class Action - Contact the Firm
• Neutral Sentiment: The legal notices are largely procedural at this stage, but they reinforce that a securities class action is active and approaching a lead-plaintiff deadline. Article: PINS Investors Have Opportunity to Lead Pinterest, Inc. Securities Fraud Lawsuit with the Schall Law Firm

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on PINS shares. Wells Fargo & Company boosted their price target on Pinterest from $25.00 to $28.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Piper Sandler reiterated a "neutral" rating and issued a $26.00 price target (up from $21.00) on shares of Pinterest in a research note on Tuesday, May 5th. Wedbush cut their price target on Pinterest from $30.00 to $16.00 and set a "neutral" rating for the company in a research note on Friday, February 13th. Loop Capital cut Pinterest from a "buy" rating to a "hold" rating and cut their price target for the company from $45.00 to $18.00 in a research note on Friday, February 13th. Finally, Wall Street Zen upgraded Pinterest from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Sixteen analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $27.40.

Pinterest Stock Performance

The company has a debt-to-equity ratio of 0.34, a quick ratio of 4.23 and a current ratio of 4.23. The stock has a fifty day simple moving average of $19.29 and a two-hundred day simple moving average of $22.61. The stock has a market capitalization of $10.49 billion, a price-to-earnings ratio of 39.01, a P/E/G ratio of 1.05 and a beta of 0.93.

Pinterest (NYSE:PINS - Get Free Report) last issued its quarterly earnings results on Monday, May 4th. The company reported $0.27 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.05. Pinterest had a return on equity of 8.26% and a net margin of 7.64%.The firm had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $965.84 million. During the same period last year, the business posted $0.23 EPS. The business's revenue was up 17.8% compared to the same quarter last year. Analysts forecast that Pinterest, Inc. will post 0.68 earnings per share for the current fiscal year.

Insider Activity at Pinterest

In other news, Director Gokul Rajaram sold 2,100 shares of the firm's stock in a transaction dated 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 $549,000. This trade represents a 7.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 8.09% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Pinterest

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