Nextdoor (NYSE:NXDR) Shares Down 5.5% - Should You Sell?

Key Points

• Nextdoor shares fell 5.5% to about $2.50 in mid-day trading, while trading volume was roughly 52% below the average session volume.
• Analyst sentiment remains mixed: B. Riley upgraded the stock to “Buy” with a $3.30 target, while Citigroup maintained a “Neutral” rating at $2.85 and Weiss Ratings reiterated a “Sell” rating. The overall consensus is “Hold,” with a $2.80 target price.
• Nextdoor beat quarterly expectations, reporting a $0.01 loss per share versus the expected $0.02 loss and revenue of $74.55 million versus $72.10 million. However, the company remains unprofitable, and a chief accounting officer recently sold 154,893 shares under a pre-arranged trading plan.

Nextdoor Holdings, Inc. (NYSE:NXDR - Get Free Report) traded down 5.5% on Tuesday . The company traded as low as $2.51 and last traded at $2.4950. Approximately 1,493,659 shares were traded during mid-day trading, a decline of 52% from the average session volume of 3,093,867 shares. The stock had previously closed at $2.64.

Analysts Set New Price Targets

A number of research firms recently issued reports on NXDR. B. Riley Financial upgraded Nextdoor from a "neutral" rating to a "buy" rating and lifted their target price for the company from $2.00 to $3.30 in a report on Thursday, August 6th. Citigroup lifted their price target on Nextdoor from $2.30 to $2.85 and gave the stock a "neutral" rating in a research report on Monday, August 17th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Nextdoor in a research note on Friday, July 10th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $2.80.

Nextdoor Price Performance

The company has a market capitalization of $943.94 million, a PE ratio of -31.19 and a beta of 1.37. The stock has a 50-day simple moving average of $2.38 and a 200 day simple moving average of $2.03.

Nextdoor (NYSE:NXDR - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported ($0.01) earnings per share for the quarter, topping analysts' consensus estimates of ($0.02) by $0.01. The business had revenue of $74.55 million during the quarter, compared to analysts' expectations of $72.10 million. Nextdoor had a negative net margin of 11.08% and a negative return on equity of 6.16%. As a group, research analysts predict that Nextdoor Holdings, Inc. will post -0.05 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CAO Antoinette How sold 154,893 shares of the stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $2.43, for a total transaction of $376,389.99. Following the transaction, the chief accounting officer directly owned 154,893 shares in the company, valued at approximately $376,389.99. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 33.46% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Squarepoint Ops LLC increased its position in shares of Nextdoor by 51.4% in the second quarter. Squarepoint Ops LLC now owns 789,512 shares of the company's stock worth $1,792,000 after acquiring an additional 268,007 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Nextdoor during the second quarter valued at approximately $331,000. Byrne Asset Management LLC lifted its stake in Nextdoor by 12.3% during the second quarter. Byrne Asset Management LLC now owns 145,600 shares of the company's stock worth $331,000 after purchasing an additional 16,000 shares during the last quarter. Amundi raised its stake in Nextdoor by 16.9% during the first quarter. Amundi now owns 203,999 shares of the company's stock worth $286,000 after acquiring an additional 29,435 shares during the period. Finally, Quantinno Capital Management LP boosted its position in Nextdoor by 177.5% during the 1st quarter. Quantinno Capital Management LP now owns 30,737 shares of the company's stock valued at $43,000 after purchasing an additional 19,661 shares during the period. Institutional investors and hedge funds own 35.66% of the company's stock.

About Nextdoor

Nextdoor Holdings, Inc operates Nextdoor, a neighborhood-focused social networking platform available through mobile applications and the web. The service enables people to connect with nearby residents, exchange local information, request and provide recommendations, share alerts, and discuss community issues. Users generally join neighborhood networks tied to their residential locations, helping Nextdoor support conversations based on geographic communities.

The platform also offers features for local businesses, public agencies, and nonprofit organizations.

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.