Coupang (NYSE:CPNG) Sets New 12-Month Low - Should You Sell?

Key Points

• Coupang shares fell to a new 52-week low of $14.38, below their 50-day and 200-day moving averages, amid continued unprofitability and a negative price-to-earnings ratio.
• Analysts remain mixed but generally see upside, with an average rating of “Hold” and an average price target of $25.39; six analysts rate the stock Buy, four Hold, and two Sell.
• The company beat quarterly EPS expectations but slightly missed revenue forecasts, while revenue grew 3.9% year over year. Insiders recently sold shares, although institutional investors own a substantial 83.72% stake.

Coupang, Inc. (NYSE:CPNG - Get Free Report)'s stock price hit a new 52-week low during trading on Wednesday . The company traded as low as $14.38 and last traded at $14.4370, with a volume of 7559804 shares traded. The stock had previously closed at $14.68.

Analyst Ratings Changes

A number of brokerages recently weighed in on CPNG. Mizuho set a $22.00 target price on shares of Coupang in a research note on Wednesday, August 5th. Barclays restated an "overweight" rating and issued a $29.00 price target on shares of Coupang in a report on Tuesday, July 7th. The Goldman Sachs Group set a $31.00 price objective on Coupang in a research report on Thursday, July 9th. CLSA assumed coverage on Coupang in a report on Monday, June 15th. They set an "outperform" rating and a $24.00 price objective for the company. Finally, Bank of America dropped their target price on Coupang from $27.00 to $24.00 and set a "buy" rating on the stock in a research report on Wednesday, August 5th. Six research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $25.39.

Coupang Stock Down 1.7%

The firm's 50 day simple moving average is $16.23 and its 200-day simple moving average is $17.56. The company has a current ratio of 0.87, a quick ratio of 0.68 and a debt-to-equity ratio of 0.21. The stock has a market capitalization of $25.95 billion, a price-to-earnings ratio of -33.57 and a beta of 1.15.

Coupang (NYSE:CPNG - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported ($0.09) earnings per share for the quarter, beating the consensus estimate of ($0.27) by $0.18. The company had revenue of $8.86 billion during the quarter, compared to analysts' expectations 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 expect that Coupang, Inc. will post -0.46 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Harold Rogers sold 192,110 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $16.18, for a total value of $3,108,339.80. Following the completion of the sale, the insider 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 transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Jonathan D. Lee sold 5,519 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $16.10, for a total value of $88,855.90. Following the completion of the sale, the chief accounting officer directly owned 181,915 shares of the company's stock, valued at approximately $2,928,831.50. The trade was a 2.94% 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. 12.83% of the stock is owned by company insiders.

Institutional Trading of Coupang

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC raised its holdings in shares of Coupang by 18.0% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 89,534 shares of the company's stock valued at $1,555,000 after purchasing an additional 13,666 shares during the period. MCF Advisors LLC grew its holdings in Coupang by 806.8% during the second quarter. MCF Advisors LLC now owns 13,793 shares of the company's stock worth $240,000 after purchasing an additional 12,272 shares during the period. Engineers Gate Manager LP acquired a new position in Coupang during the second quarter worth approximately $6,081,000. Carrhae Capital LLP bought a new stake in Coupang in the second quarter valued at approximately $38,187,000. Finally, Light Street Capital Management LLC raised its stake in Coupang by 92.5% in the second quarter. Light Street Capital Management LLC now owns 2,025,000 shares of the company's stock valued at $35,174,000 after buying an additional 973,043 shares during the period. 83.72% of the stock is owned by institutional investors.

Coupang Company Profile

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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