Pinterest's (PINS) Neutral Rating Reaffirmed at Wedbush

Key Points

• Wedbush reaffirmed Pinterest at a neutral rating and kept a $24 price target, implying only modest upside from the current share price.
• Other analysts remain mixed: Wells Fargo and Stifel raised targets and stayed bullish, while the overall Street view is still Hold with an average target of $27.66.
• Pinterest recently beat earnings and revenue estimates, reporting $0.27 EPS on $1.01 billion in revenue, while insiders have also been selling shares in recent months.

Pinterest (NYSE:PINS - Get Free Report)'s stock had its "neutral" rating reaffirmed by equities research analysts at Wedbush in a research report issued to clients and investors on Thursday,Benzinga reports. They currently have a $24.00 price objective on the stock. Wedbush's price objective indicates a potential upside of 1.35% from the stock's current price.

Several other brokerages also recently weighed in on PINS. Wells Fargo & Company upped their target price on shares of Pinterest from $28.00 to $30.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 7th. Stifel Nicolaus boosted their target price on Pinterest from $25.00 to $27.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. JPMorgan Chase & Co. lifted their price objective on Pinterest from $20.00 to $25.00 and gave the company a "neutral" rating in a research note on Tuesday, May 5th. TD Cowen restated a "buy" rating on shares of Pinterest in a research note on Monday, June 22nd. Finally, 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. Seventeen research 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 has a consensus rating of "Hold" and an average price target of $27.66.

Pinterest Price Performance

Pinterest stock opened at $23.68 on Thursday. 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 company has a fifty day simple moving average of $20.87 and a 200-day simple moving average of $20.81. Pinterest has a 52-week low of $13.84 and a 52-week high of $39.93. The firm has a market capitalization of $13.26 billion, a price-to-earnings ratio of 49.33, a PEG ratio of 1.28 and a beta of 0.89.

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

Insider Activity

In other Pinterest news, Director Benjamin Silbermann sold 46,875 shares of the stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $22.63, for a total value of $1,060,781.25. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Wanjiku Juanita Walcott sold 14,208 shares of the firm's stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $19.65, for a total transaction of $279,187.20. Following the sale, the insider directly owned 691,840 shares in the company, valued at approximately $13,594,656. The trade was a 2.01% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 323,845 shares of company stock worth $6,836,065 in the last three months. Corporate insiders own 8.09% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Yousif Capital Management LLC increased its stake in shares of Pinterest by 2,298.3% in the fourth quarter. Yousif Capital Management LLC now owns 185,170 shares of the company's stock worth $4,701,000 after buying an additional 177,449 shares during the last quarter. Forsta AP Fonden boosted its stake in Pinterest by 61.2% during the 4th quarter. Forsta AP Fonden now owns 397,400 shares of the company's stock valued at $10,289,000 after acquiring an additional 150,900 shares during the last quarter. Jefferies Financial Group Inc. acquired a new position in Pinterest during the 4th quarter worth $12,812,000. KLP Kapitalforvaltning AS grew its holdings in Pinterest by 103.4% during the 4th quarter. KLP Kapitalforvaltning AS now owns 838,500 shares of the company's stock worth $21,709,000 after acquiring an additional 426,300 shares in the last quarter. Finally, Freemont Management S.A. bought a new stake in shares of Pinterest in the 4th quarter worth about $2,540,000. 88.81% of the stock is owned by hedge funds and other institutional investors.

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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