NerdWallet (NASDAQ:NRDS) Share Price Crosses Below 200 Day Moving Average After Earnings Miss

Key Points

• NerdWallet missed quarterly estimates: Earnings were $0.23 per share versus $0.34 expected, while revenue of $239.6 million fell short of the $251.9 million consensus. Earnings also declined from $0.34 a year earlier, despite revenue growing 11.4% year over year.
• The near-term outlook weakened: Fourth-quarter revenue guidance of $191 million–$203 million was well below analyst expectations of about $241 million, and costs grew faster than consumer revenue.
• The stock fell below its 200-day moving average of $9.80, trading as low as $7.74. Analyst views were mixed: William Blair downgraded the shares to Market Perform, while Truist kept a Buy rating but cut its price target to $12.

NerdWallet, Inc. (NASDAQ:NRDS - Get Free Report) crossed below its two hundred day moving average during trading on Friday following a dissappointing earnings announcement. The stock has a two hundred day moving average of $9.80 and traded as low as $7.74. NerdWallet shares last traded at $7.89, with a volume of 3,076,822 shares changing hands.

The company reported $0.23 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.11). NerdWallet had a net margin of 7.56% and a return on equity of 18.07%. The company had revenue of $239.60 million during the quarter, compared to the consensus estimate of $251.86 million. During the same period in the previous year, the company earned $0.34 earnings per share. NerdWallet's revenue for the quarter was up 11.4% compared to the same quarter last year.

Trending Headlines about NerdWallet

Here are the key news stories impacting NerdWallet this week:

• Positive Sentiment: Truist maintained a Buy rating and sees potential upside from its current level, although it cut its price target to $12 from $15. Truist analyst information
• Negative Sentiment: Fourth-quarter revenue guidance of $191 million–$203 million came in well below the roughly $241 million analyst consensus, signaling a weaker near-term outlook. NerdWallet third-quarter results
• Negative Sentiment: Third-quarter adjusted earnings of $0.23 per share and revenue of $239.6 million missed consensus estimates of $0.34 and $251.9 million, respectively. Earnings also declined from $0.34 per share a year earlier. NerdWallet misses third-quarter estimates
• Negative Sentiment: Costs rose about 22%, nearly twice the 12% growth in consumer revenue, fueling concerns that expense growth is eroding the benefit of sales gains. Why NerdWallet stock came under pressure
• Negative Sentiment: William Blair downgraded NerdWallet from Outperform to Market Perform, adding to the cautious analyst commentary. William Blair downgrade

Analysts Set New Price Targets

Several equities analysts recently commented on NRDS shares. Truist Financial dropped their price objective on shares of NerdWallet from $15.00 to $12.00 and set a "buy" rating for the company in a research note on Friday. William Blair downgraded shares of NerdWallet from an "outperform" rating to a "market perform" rating in a research report on Friday. Finally, Weiss Ratings raised NerdWallet from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, October 15th. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $12.33.

Institutional Investors Weigh In On NerdWallet

Institutional investors have recently made changes to their positions in the stock. Russell Investments Group Ltd. increased its position in shares of NerdWallet by 97.0% during the 3rd quarter. Russell Investments Group Ltd. now owns 176,576 shares of the company's stock valued at $1,550,000 after purchasing an additional 86,927 shares during the last quarter. Ritholtz Wealth Management bought a new position in shares of NerdWallet during the third quarter valued at approximately $378,000. Alps Advisors Inc. bought a new stake in shares of NerdWallet in the 3rd quarter valued at about $536,000. State of Wyoming boosted its holdings in NerdWallet by 10.3% in the third quarter. State of Wyoming now owns 29,785 shares of the company's stock valued at $262,000 after purchasing an additional 2,778 shares during the last quarter. Finally, Inspire Investing LLC acquired a new stake in NerdWallet in the 3rd quarter worth about $638,000. Hedge funds and other institutional investors own 38.81% of the company's stock.

NerdWallet Trading Down 31.0%

The firm has a market cap of $504.33 million, a price-to-earnings ratio of 10.12 and a beta of 1.20. The stock's fifty day moving average price is $9.70 and its 200-day moving average price is $9.80.

NerdWallet Company Profile

NerdWallet, Inc is a personal finance company that operates a digital platform designed to help consumers make informed financial decisions. Its website and mobile tools provide educational content, personalized recommendations and comparison services across a range of financial products.

The company covers categories including credit cards, banking, personal and student loans, mortgages, insurance, investing and small-business finance. NerdWallet generates revenue primarily through partnerships with financial institutions and other providers when users engage with or apply for recommended products.

Founded in 2009 by Tim Chen and Jacob Gibson, NerdWallet is headquartered in San Francisco and serves consumers primarily in the United States.

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