NerdWallet (NASDAQ:NRDS) Shares Gap Down After Earnings Miss

Key Points

• NerdWallet shares fell sharply after earnings, opening at $7.91 versus the prior close of $11.43 and trading down 26.6%.
• The company reported quarterly EPS of $0.23, below the $0.34 consensus, and revenue of $239.6 million, short of the $251.86 million estimate. Revenue still grew 11.4% year over year.
• Analysts’ consensus rating is Hold, with an average price target of $12.83; William Blair downgraded the stock from Outperform to Market Perform.

NerdWallet, Inc. (NASDAQ:NRDS - Get Free Report)'s share price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $11.43, but opened at $7.91. NerdWallet shares last traded at $8.3050, with a volume of 358,965 shares.

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

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Weiss Ratings upgraded shares of NerdWallet from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 15th. William Blair lowered NerdWallet from an "outperform" rating to a "market perform" rating in a research note on Friday. Four investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $12.83.

Hedge Funds Weigh In On NerdWallet

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NRDS. Principal Financial Group Inc. bought a new position in shares of NerdWallet in the first quarter valued at approximately $2,903,000. Dimensional Fund Advisors LP boosted its holdings in shares of NerdWallet by 13.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,322,848 shares of the company's stock worth $13,730,000 after acquiring an additional 153,790 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of NerdWallet in the 2nd quarter worth approximately $1,016,000. Renaissance Technologies LLC grew its position in NerdWallet by 25.4% during the 1st quarter. Renaissance Technologies LLC now owns 1,002,275 shares of the company's stock worth $10,404,000 after acquiring an additional 202,838 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its position in NerdWallet by 32.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,808,988 shares of the company's stock worth $18,777,000 after acquiring an additional 444,038 shares during the last quarter. 38.81% of the stock is currently owned by institutional investors and hedge funds.

NerdWallet Trading Down 26.6%

The stock has a fifty day moving average of $9.74 and a two-hundred day moving average of $9.83. The stock has a market capitalization of $536.51 million, a price-to-earnings ratio of 9.42 and a beta of 1.20.

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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