Pinterest (NYSE:PINS) Shares Gap Down on Disappointing Earnings

Key Points

• Pinterest's shares gapped down to $33.29 after reporting an earnings miss of $0.33 EPS, falling short of the expected $0.34.
• Despite missing earnings estimates, Pinterest reported a 16.9% year-over-year revenue increase, with quarterly revenue reaching $998.23 million.
• Analysts remain mostly positive, with 24 buy ratings compared to 5 hold ratings, and several target prices adjusted upward, reflecting confidence in the stock's potential.

Pinterest, Inc. (NYSE:PINS - Get Free Report) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $39.17, but opened at $33.29. Pinterest shares last traded at $35.73, with a volume of 12,007,688 shares trading hands.

The company reported $0.33 EPS for the quarter, missing the consensus estimate of $0.34 by ($0.01). The firm had revenue of $998.23 million for the quarter, compared to the consensus estimate of $973.42 million. Pinterest had a net margin of 49.31% and a return on equity of 8.80%. The business's revenue was up 16.9% on a year-over-year basis. During the same period last year, the company posted $0.29 earnings per share.

Analyst Ratings Changes

PINS has been the topic of several research analyst reports. KeyCorp boosted their price target on shares of Pinterest from $40.00 to $45.00 and gave the company an "overweight" rating in a research report on Thursday, July 17th. Barclays boosted their price target on shares of Pinterest from $38.00 to $40.00 and gave the company an "equal weight" rating in a research report on Friday. Susquehanna reiterated a "positive" rating and set a $42.00 price target on shares of Pinterest in a research report on Friday. Bank of America boosted their price target on shares of Pinterest from $41.00 to $44.00 and gave the company a "buy" rating in a research report on Friday. Finally, Wells Fargo & Company set a $42.00 price target on shares of Pinterest and gave the company an "overweight" rating in a research report on Tuesday, July 1st. Five analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $42.40.

Insiders Place Their Bets

In related news, Director Benjamin Silbermann sold 408,332 shares of the stock in a transaction that occurred on Wednesday, May 14th. The shares were sold at an average price of $33.16, for a total transaction of $13,540,289.12. Following the transaction, the director owned 6,274 shares in the company, valued at $208,045.84. This represents a 98.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders have sold a total of 1,502,611 shares of company stock worth $51,602,943 in the last 90 days. 7.06% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PINS. Price T Rowe Associates Inc. MD lifted its position in Pinterest by 104.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 25,432,141 shares of the company's stock valued at $737,533,000 after purchasing an additional 12,986,310 shares during the period. Amundi raised its position in Pinterest by 618.9% in the first quarter. Amundi now owns 14,254,741 shares of the company's stock worth $441,897,000 after acquiring an additional 12,271,958 shares during the period. Marshall Wace LLP raised its position in Pinterest by 134.1% in the fourth quarter. Marshall Wace LLP now owns 10,701,783 shares of the company's stock worth $310,352,000 after acquiring an additional 6,129,985 shares during the period. Ameriprise Financial Inc. raised its position in Pinterest by 49.7% in the fourth quarter. Ameriprise Financial Inc. now owns 13,635,800 shares of the company's stock worth $395,441,000 after acquiring an additional 4,527,902 shares during the period. Finally, Swedbank AB raised its position in Pinterest by 344.0% in the first quarter. Swedbank AB now owns 5,839,485 shares of the company's stock worth $181,024,000 after acquiring an additional 4,524,433 shares during the period. Institutional investors own 88.81% of the company's stock.

Pinterest Price Performance

The firm has a market capitalization of $23.87 billion, a P/E ratio of 12.61, a P/E/G ratio of 1.76 and a beta of 0.78. The company's 50-day simple moving average is $36.01 and its two-hundred day simple moving average is $33.13.

Pinterest Company Profile

Pinterest, Inc operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc and changed its name to Pinterest, Inc in April 2012.