Cimpress (NASDAQ:CMPR) Shares Gap Down After Earnings Miss

Key Points

• Cimpress shares fell sharply after earnings. The stock opened at $68.31, down from $74.79, after the company reported a quarterly loss of $0.11 per share versus analysts’ expected profit of $0.80. Revenue of $934.05 million was essentially in line with forecasts.
• Analyst sentiment remains mixed but leans positive, with Cimpress carrying a consensus “Moderate Buy” rating and an average price target of $114.50. Recent actions included price-target reductions and downgrades to “Hold” from several firms.
• Insiders have been selling shares: CEO Robert Keane sold 16,000 shares for about $1.36 million, while insiders sold approximately $3.0 million of stock over the past three months. Institutional investors and hedge funds own 77.64% of the company.

Cimpress plc (NASDAQ:CMPR - Get Free Report)'s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $74.79, but opened at $68.31. Cimpress shares last traded at $69.8150, with a volume of 55,665 shares trading hands.

The business services provider reported ($0.11) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.80 by ($0.91). Cimpress had a negative return on equity of 18.83% and a net margin of 2.57%. The business had revenue of $934.05 million for the quarter, compared to analysts' expectations of $934.18 million.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on CMPR shares. Truist Financial reduced their price target on Cimpress from $110.00 to $108.00 and set a "buy" rating for the company in a report on Friday, July 31st. Weiss Ratings raised shares of Cimpress from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, August 11th. Zacks Research lowered Cimpress from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 13th. Wall Street Zen downgraded Cimpress from a "buy" rating to a "hold" rating in a report on Saturday, August 15th. Finally, Barrington Research set a $121.00 target price on Cimpress in a research report on Tuesday, August 11th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, Cimpress has an average rating of "Moderate Buy" and a consensus price target of $114.50.

Insider Activity

In other Cimpress news, CEO Robert Keane sold 16,000 shares of the firm's stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $84.88, for a total value of $1,358,080.00. Following the sale, the chief executive officer owned 764,000 shares in the company, valued at approximately $64,848,320. This trade represents a 2.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold a total of 34,500 shares of company stock worth $3,001,585 over the last three months. Insiders own 10.20% of the company's stock.

Institutional Investors Weigh In On Cimpress

A number of institutional investors have recently added to or reduced their stakes in CMPR. Financial Management Professionals Inc. acquired a new position in shares of Cimpress in the 2nd quarter worth $33,000. KBC Group NV acquired a new position in shares of Cimpress in the first quarter worth about $30,000. Public Employees Retirement System of Ohio purchased a new position in shares of Cimpress in the second quarter worth approximately $45,000. USA Financial Formulas acquired a new stake in shares of Cimpress during the third quarter valued at approximately $39,000. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of Cimpress by 27.7% during the first quarter. EverSource Wealth Advisors LLC now owns 817 shares of the business services provider's stock valued at $60,000 after acquiring an additional 177 shares during the period. 77.64% of the stock is currently owned by institutional investors and hedge funds.

Cimpress Trading Down 7.1%

The company's 50-day moving average is $81.37 and its 200 day moving average is $84.48. The firm has a market cap of $1.69 billion, a PE ratio of 18.42 and a beta of 1.82.

About Cimpress

Cimpress plc NASDAQ: CMPR is a global provider of mass-customization products and services. The company uses technology, manufacturing, and marketing platforms to help small businesses, consumers, and organizations create and order personalized physical and digital products.

Its portfolio includes custom marketing materials, signage, apparel, promotional products, packaging, gifts, invitations, photo products, websites, and design services. Cimpress operates through a collection of specialized businesses and brands, including VistaPrint, 99designs by Vista, VistaCreate, National Pen, and other regional and category-focused businesses serving customers in North America, Europe, Asia, and other international markets.

The company was founded in 1995 by Robert Keane as Vistaprint and changed its corporate name to Cimpress in 2014 as it expanded beyond its original online printing business.

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