eToro Group (NASDAQ:ETOR) Reaches New 1-Year Low - Should You Sell?

Key Points

• eToro shares fell to a new 52-week low of $23.40, trading below their 50-day and 200-day moving averages.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a $46.33 price target, although several firms recently downgraded the stock or cut their targets.
• The company beat quarterly EPS estimates ($0.68 versus $0.61), but revenue declined 23.9% year over year; a director also sold 100,000 shares at an average price of $31.20.

eToro Group Ltd. (NASDAQ:ETOR - Get Free Report) shares reached a new 52-week low on Monday. The stock traded as low as $23.40 and last traded at $23.5660, with a volume of 56,557 shares. The stock had previously closed at $23.92.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on ETOR. Mizuho decreased their price target on shares of eToro Group from $52.00 to $43.00 and set an "outperform" rating for the company in a research note on Friday, September 18th. Wall Street Zen lowered shares of eToro Group from a "buy" rating to a "hold" rating in a report on Saturday, August 15th. Zacks Research downgraded eToro Group from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 14th. The Goldman Sachs Group increased their target price on eToro Group from $32.00 to $36.00 and gave the company a "neutral" rating in a research note on Wednesday, September 9th. Finally, Needham & Company LLC lowered their price target on eToro Group from $55.00 to $54.00 and set a "buy" rating on the stock in a report on Wednesday, October 21st. Ten investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $46.33.

eToro Group Price Performance

The stock has a market capitalization of $1.95 billion, a P/E ratio of 8.85, a P/E/G ratio of 0.68 and a beta of 1.79. The company has a debt-to-equity ratio of 0.02, a current ratio of 4.02 and a quick ratio of 4.02. The firm has a fifty day moving average of $27.90 and a two-hundred day moving average of $34.19.

eToro Group (NASDAQ:ETOR - Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $0.68 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.07. eToro Group had a return on equity of 20.26% and a net margin of 2.17%. The business had revenue of $1.59 billion during the quarter. During the same period in the prior year, the business posted $0.56 EPS. eToro Group's revenue was down 23.9% compared to the same quarter last year. On average, analysts predict that eToro Group Ltd. will post 2.48 EPS for the current year.

Insider Activity

In other eToro Group news, Director Shalev Eddy sold 100,000 shares of the company's stock in a transaction on Friday, August 28th. The stock was sold at an average price of $31.20, for a total value of $3,120,000.00. Following the completion of the sale, the director directly owned 196,779 shares in the company, valued at $6,139,504.80. This represents a 33.70% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Hedge Funds Weigh In On eToro Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ETOR. Nisa Investment Advisors LLC increased its holdings in eToro Group by 109.7% in the third quarter. Nisa Investment Advisors LLC now owns 1,105 shares of the company's stock valued at $28,000 after buying an additional 578 shares during the last quarter. Tidal Investments LLC increased its holdings in shares of eToro Group by 1.9% in the second quarter. Tidal Investments LLC now owns 666,388 shares of the company's stock valued at $26,302,000 after purchasing an additional 12,441 shares during the period. Whetstone Capital Advisors LLC raised its stake in shares of eToro Group by 36.8% during the second quarter. Whetstone Capital Advisors LLC now owns 190,284 shares of the company's stock worth $7,511,000 after purchasing an additional 51,197 shares during the last quarter. Wellington Management Group LLP purchased a new position in eToro Group in the 2nd quarter valued at $22,134,000. Finally, Public Employees Retirement System of Ohio acquired a new position in eToro Group in the 2nd quarter valued at $939,000.

About eToro Group

eToro Group Ltd. NASDAQ: ETOR operates a global, multi-asset investment and trading platform. Its services enable users to invest in stocks, exchange-traded funds, cryptocurrencies and other instruments, with product availability varying by jurisdiction and local regulations. In certain markets, eToro also offers contracts for difference and other leveraged products.

The company is known for combining online brokerage services with social-investing features. Users can view and discuss investment activity, follow other investors and use CopyTrader to automatically replicate the strategies of selected investors.

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