Coupang (NYSE:CPNG) Shares Up 13.2% on Analyst Upgrade

Key Points

• Coupang shares jumped 13.2% after Citigroup upgraded the stock from neutral to buy and set a $19 price target.
• Analysts’ average rating was listed as “Hold,” with a consensus price target of $23.68; six analysts rated the stock Buy, two Hold, and two Sell.
• Quarterly revenue rose 7.5% year over year to $9.96 billion, beating estimates, but Coupang reported a loss of $0.18 per share, worse than the expected $0.09 loss and a year-earlier profit.

Coupang, Inc. (NYSE:CPNG - Get Free Report) shot up 13.2% during mid-day trading on Wednesday after Citigroup upgraded the stock from a neutral rating to a buy rating. Citigroup now has a $19.00 price target on the stock. Coupang traded as high as $17.16 and last traded at $17.24. 6,275,123 shares traded hands during trading, a decline of 70% from the average session volume of 21,067,525 shares. The stock had previously closed at $15.23.

CPNG has been the topic of several other research reports. Deutsche Bank Aktiengesellschaft upgraded shares of Coupang from a "hold" rating to a "buy" rating and dropped their target price for the stock from $23.00 to $21.50 in a research note on Wednesday, August 5th. Mizuho set a $22.00 price target on shares of Coupang in a report on Wednesday, August 5th. The Goldman Sachs Group set a $31.00 price objective on shares of Coupang in a research report on Thursday, July 9th. Barclays restated an "overweight" rating and set a $29.00 price target on shares of Coupang in a report on Tuesday, July 7th. Finally, Bank of America reduced their price objective on shares of Coupang from $27.00 to $24.00 and set a "buy" rating on the stock in a research report on Wednesday, August 5th. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $23.68.

Insider Activity at Coupang

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

Trending Headlines about Coupang

Here are the key news stories impacting Coupang this week:

• Positive Sentiment: Citigroup raised its rating on Coupang from “neutral” to “buy” and set a $19 price target, implying potential upside from the price cited in the report. Citigroup ratings
• Positive Sentiment: Management forecast fourth-quarter constant-currency revenue growth of 13%–14% and adjusted EBITDA margin expansion of 50–150 basis points, signaling expectations for stronger growth and improving profitability. Coupang Q4 forecast
• Positive Sentiment: Third-quarter revenue of $9.96 billion exceeded the $9.76 billion estimate and increased 7.5% year over year. Coupang Q3 sales
• Negative Sentiment: Coupang reported a quarterly loss of $0.18 per share, compared with a profit of $0.05 a year earlier, and missed the consensus estimate cited in the earnings report. The loss may temper optimism about the revenue beat; coverage also highlighted a $248 million fire-related impact. Coupang quarterly loss

Institutional Investors Weigh In On Coupang

Institutional investors have recently added to or reduced their stakes in the business. NewEdge Wealth LLC boosted its holdings in Coupang by 5.2% during the first quarter. NewEdge Wealth LLC now owns 16,917 shares of the company's stock worth $319,000 after buying an additional 840 shares in the last quarter. Root Financial Partners LLC grew its stake in Coupang by 68.5% in the 1st quarter. Root Financial Partners LLC now owns 2,265 shares of the company's stock valued at $43,000 after acquiring an additional 921 shares during the period. Resonant Capital Advisors LLC grew its stake in Coupang by 10.5% in the 1st quarter. Resonant Capital Advisors LLC now owns 13,449 shares of the company's stock valued at $254,000 after acquiring an additional 1,280 shares during the period. Vise Technologies Inc. increased its holdings in Coupang by 6.6% in the 3rd quarter. Vise Technologies Inc. now owns 21,112 shares of the company's stock worth $293,000 after acquiring an additional 1,315 shares in the last quarter. Finally, Adalta Capital Management LLC raised its position in Coupang by 1.5% during the first quarter. Adalta Capital Management LLC now owns 87,801 shares of the company's stock worth $1,658,000 after acquiring an additional 1,335 shares during the period. Institutional investors and hedge funds own 83.72% of the company's stock.

Coupang Price Performance

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's 50-day simple moving average is $14.73 and its two-hundred day simple moving average is $17.22. The company has a market capitalization of $30.49 billion, a price-to-earnings ratio of -39.81 and a beta of 1.15.

Coupang (NYSE:CPNG - Get Free Report) last announced its earnings results on Tuesday, November 3rd. The company reported ($0.18) earnings per share (EPS) 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 analyst estimates of $9.76 billion. During the same quarter last year, the business earned $0.05 EPS. The firm's revenue for the quarter was up 7.5% compared to the same quarter last year. Equities research analysts predict that Coupang, Inc. will post -0.47 earnings per share for the current year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.