Coupang (NYSE:CPNG) Share Price Breaks Above 50 Day Moving Average on Disappointing Earnings

Key Points

• Coupang shares climbed above their 50-day moving average, reaching $15.38 and last trading at $15.28, despite the earnings shortfall.
• Quarterly revenue rose 7.5% year over year to $9.96 billion, topping estimates, but the company reported a loss of $0.18 per share versus analysts’ expected loss of $0.09.
• Analysts’ consensus rating is Hold, with an average price target of $24.06; individual targets range from $22 to $31, while one firm rates the stock Sell.

Coupang, Inc. (NYSE:CPNG - Get Free Report)'s stock price crossed above its fifty day moving average during trading on Tuesday following a stronger than expected earnings report. The stock has a fifty day moving average of $14.73 and traded as high as $15.38. Coupang shares last traded at $15.2830, with a volume of 26,616,189 shares.

The company reported ($0.18) earnings per share for the quarter, missing the consensus estimate of ($0.09) by ($0.09). Coupang had a negative net margin of 2.16% and a negative return on equity of 8.77%. The company had revenue of $9.96 billion during the quarter, compared to the consensus estimate of $9.76 billion. During the same quarter in the prior year, the company posted $0.05 earnings per share. The company's revenue for the quarter was up 7.5% on a year-over-year basis.

Coupang News Summary

Here are the key news stories impacting Coupang this week:

• Positive Sentiment: Q3 revenue was $9.96 billion, above FactSet’s $9.76 billion estimate. One Zacks report also said Coupang’s adjusted loss of $0.18 per share was narrower than its cited $0.23 consensus loss. Revenue report Zacks earnings report
• Neutral Sentiment: Coupang said it is investing in growth initiatives. Those investments may support longer-term expansion, but the reports provide no detail here on their expected returns or timing. Article on growth investments
• Negative Sentiment: Coupang posted an adjusted loss of $0.18 per share, compared with a profit of $0.05 a year earlier. Analyst comparisons differ: MarketBeat cited a $0.09 expected loss, making the result a miss, while Zacks cited a $0.23 expected loss, making it a beat. A separate report characterized a $248 million fire-related impact as wiping out the quarter, adding a potential drag on profitability. Loss report Fire impact article

Analysts Set New Price Targets

A number of brokerages have weighed in on CPNG. Barclays reiterated an "overweight" rating and issued a $29.00 price target on shares of Coupang in a research report on Tuesday, July 7th. Mizuho set a $22.00 price objective on Coupang in a research note on Wednesday, August 5th. Weiss Ratings reissued a "sell (d)" rating on shares of Coupang in a report on Monday. The Goldman Sachs Group set a $31.00 target price on shares of Coupang in a research note on Thursday, July 9th. Finally, Bank of America reduced their target price on shares of Coupang from $27.00 to $24.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $24.06.

Insider Buying and Selling

In related news, CAO Jonathan D. Lee sold 5,519 shares of the firm's stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $13.65, for a total value of $75,334.35. Following the completion of the sale, the chief accounting officer owned 176,396 shares of the company's stock, valued at $2,407,805.40. This trade represents a 3.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Harold Rogers sold 192,110 shares of the business's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $16.18, for a total transaction of $3,108,339.80. Following the completion of the transaction, the insider owned 740,931 shares of the company's stock, valued at $11,988,263.58. This trade represents a 20.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 203,148 shares of company stock worth $3,272,530 over the last quarter. 12.83% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Light Street Capital Management LLC lifted its position in Coupang by 92.5% during the 2nd quarter. Light Street Capital Management LLC now owns 2,025,000 shares of the company's stock valued at $35,174,000 after purchasing an additional 973,043 shares during the period. Nellore Capital Management LLC boosted its stake in shares of Coupang by 12.6% in the 2nd quarter. Nellore Capital Management LLC now owns 3,760,975 shares of the company's stock valued at $65,328,000 after purchasing an additional 420,000 shares during the last quarter. Nykredit A S acquired a new stake in shares of Coupang during the 2nd quarter worth approximately $1,270,000. Corient Private Wealth LP grew its position in shares of Coupang by 490.6% during the 2nd quarter. Corient Private Wealth LP now owns 655,963 shares of the company's stock worth $11,394,000 after buying an additional 544,899 shares during the period. Finally, Assenagon Asset Management S.A. grew its position in shares of Coupang by 112.3% during the 3rd quarter. Assenagon Asset Management S.A. now owns 28,102,139 shares of the company's stock worth $389,777,000 after buying an additional 14,865,737 shares during the period. 83.72% of the stock is currently owned by institutional investors.

Coupang Stock Performance

The company has a debt-to-equity ratio of 0.21, a current ratio of 0.87 and a quick ratio of 0.68. The firm has a market capitalization of $27.47 billion, a P/E ratio of -35.54 and a beta of 1.15. The stock's 50 day moving average is $14.73 and its two-hundred day moving average is $17.22.

Coupang Company Profile

Coupang, Inc is an e-commerce and technology company that operates a large digital retail platform. The company offers a broad selection of merchandise, including electronics, household goods, apparel, beauty products and groceries. Its services include Rocket Delivery, a fast-delivery program; Rocket Fresh, which focuses on fresh food and groceries; and Wow, a membership program that provides delivery and other customer benefits.

Coupang also operates Coupang Eats, a restaurant-ordering and delivery service, as well as Coupang Play, a digital video streaming platform.

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