Coupang (NYSE:CPNG) Sets New 1-Year Low - Should You Sell?

Key Points

• Coupang shares hit a new 52-week low of $14.05, below both their 50-day ($15.76) and 200-day ($17.36) moving averages, amid a market capitalization of approximately $25.5 billion.
• Analyst sentiment is mixed, with five Buy, four Hold, and two Sell ratings; the consensus is Hold with a $24.06 price target, substantially above the recent trading price.
• Coupang’s latest quarter showed an adjusted loss of $0.09 per share, beating estimates, while revenue rose 3.9% year over year to $8.86 billion. However, the company remained unprofitable, and insiders recently sold shares under a pre-arranged trading plan.

Coupang, Inc. (NYSE:CPNG - Get Free Report)'s stock price reached a new 52-week low on Thursday . The company traded as low as $14.05 and last traded at $14.0530, with a volume of 1922351 shares. The stock had previously closed at $14.28.

Analyst Ratings Changes

CPNG has been the subject of a number of research reports. CLSA started coverage on Coupang in a research note on Monday, June 15th. They issued an "outperform" rating and a $24.00 price objective for the company. Mizuho set a $22.00 target price on Coupang in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft raised Coupang from a "hold" rating to a "buy" rating and dropped their target price for the company from $23.00 to $21.50 in a research report on Wednesday, August 5th. The Goldman Sachs Group set a $31.00 price target on shares of Coupang in a research note on Thursday, July 9th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Coupang in a research report on Tuesday, August 4th. Five analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $24.06.

Coupang Stock Performance

The stock has a market capitalization of $25.52 billion, a PE ratio of -32.97 and a beta of 1.15. The company has a quick ratio of 0.68, a current ratio of 0.87 and a debt-to-equity ratio of 0.21. The stock has a fifty day moving average of $15.76 and a 200-day moving average of $17.36.

Coupang (NYSE:CPNG - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.27) by $0.18. The company had revenue of $8.86 billion for the quarter, compared to analyst estimates of $8.92 billion. Coupang had a negative return on equity of 8.77% and a negative net margin of 2.16%.Coupang's revenue for the quarter was up 3.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.02 EPS. Equities analysts anticipate that Coupang, Inc. will post -0.46 earnings per share for the current fiscal year.

Insider Activity at Coupang

In other Coupang news, insider Harold Rogers sold 192,110 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $16.18, for a total value of $3,108,339.80. Following the sale, the insider directly owned 740,931 shares of the company's stock, valued at approximately $11,988,263.58. This represents a 20.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CAO Jonathan D. Lee sold 5,519 shares of the firm's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $16.10, for a total transaction of $88,855.90. Following the completion of the sale, the chief accounting officer owned 181,915 shares in the company, valued at $2,928,831.50. The trade was a 2.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 12.83% of the stock is owned by company insiders.

Institutional Trading of Coupang

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Sequoia Financial Advisors LLC boosted its position in shares of Coupang by 18.0% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 89,534 shares of the company's stock worth $1,555,000 after acquiring an additional 13,666 shares in the last quarter. MCF Advisors LLC boosted its holdings in Coupang by 806.8% in the second quarter. MCF Advisors LLC now owns 13,793 shares of the company's stock valued at $240,000 after purchasing an additional 12,272 shares in the last quarter. Engineers Gate Manager LP purchased a new position in Coupang in the second quarter valued at approximately $6,081,000. Carrhae Capital LLP purchased a new position in Coupang in the second quarter valued at approximately $38,187,000. Finally, Light Street Capital Management LLC raised its holdings in Coupang by 92.5% during the second quarter. Light Street Capital Management LLC now owns 2,025,000 shares of the company's stock worth $35,174,000 after purchasing an additional 973,043 shares in the last quarter. 83.72% of the stock is currently owned by institutional investors and hedge funds.

About Coupang

Coupang, Inc NYSE: CPNG is an e-commerce and technology company founded in South Korea in 2010. The company operates an online marketplace offering consumer goods across categories such as electronics, household products, apparel, beauty products and groceries.

Its services include Rocket Delivery, a logistics and fulfillment network designed to provide fast delivery; Rocket Fresh, its grocery delivery service; and Coupang Eats, a food-ordering and delivery platform. Coupang also operates Coupang Play, a subscription-based streaming service, and Coupang Pay, a digital payments service.

Coupang serves customers primarily in South Korea and Taiwan.

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