Pinterest (NYSE:PINS) Shares Down 8.3% - Time to Sell?

Key Points

• Pinterest shares fell 8.3% to about $18.47, trading below both their 50-day and 200-day moving averages.
• Analysts remain mixed, with an average “Hold” rating and a consensus price target of $27.90; recent firms set targets ranging from $25 to $32.
• The company exceeded quarterly expectations, reporting $0.43 in EPS and $1.18 billion in revenue, up 18.2% year over year, though insiders sold more than $12.3 million in stock during the quarter.

Pinterest, Inc. (NYSE:PINS - Get Free Report) shares traded down 8.3% during mid-day trading on Wednesday . The company traded as low as $18.66 and last traded at $18.4650. Approximately 13,144,639 shares changed hands during trading, a decline of 22% from the average daily volume of 16,899,057 shares. The stock had previously closed at $20.14.

Analysts Set New Price Targets

A number of research firms have recently commented on PINS. TD Cowen restated a "buy" rating on shares of Pinterest in a report on Monday, June 22nd. Mizuho raised their price objective on Pinterest from $31.00 to $32.00 and gave the company an "outperform" rating in a research report on Wednesday, August 5th. Susquehanna reaffirmed a "positive" rating on shares of Pinterest in a report on Wednesday, August 5th. Royal Bank Of Canada increased their price objective on shares of Pinterest from $23.00 to $25.00 and gave the company a "sector perform" rating in a research report on Wednesday, August 5th. Finally, Robert W. Baird increased their price objective on Pinterest from $24.00 to $26.00 and gave the company a "neutral" rating in a report on Wednesday, August 5th. Eighteen investment analysts have rated the stock with a Buy rating and nineteen have issued a Hold rating to the company's stock. According to MarketBeat.com, Pinterest currently has an average rating of "Hold" and a consensus price target of $27.90.

Pinterest Price Performance

The company has a quick ratio of 3.81, a current ratio of 3.81 and a debt-to-equity ratio of 0.34. The stock's 50-day simple moving average is $22.88 and its two-hundred day simple moving average is $20.70. The company has a market capitalization of $10.41 billion, a price-to-earnings ratio of 54.75, a PEG ratio of 1.34 and a beta of 0.90.

Pinterest (NYSE:PINS - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.36 by $0.07. Pinterest had a return on equity of 7.49% and a net margin of 5.46%.The firm had revenue of $1.18 billion during the quarter, compared to analysts' expectations of $1.15 billion. During the same period in the previous year, the business earned $0.33 earnings per share. The firm's revenue for the quarter was up 18.2% on a year-over-year basis. Equities research analysts predict that Pinterest, Inc. will post 0.58 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Julia Donnelly sold 59,096 shares of the business's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $23.48, for a total value of $1,387,574.08. Following the sale, the chief financial officer owned 817,409 shares in the company, valued at approximately $19,192,763.32. The trade was a 6.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Benjamin Silbermann sold 93,750 shares of the stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $21.43, for a total value of $2,009,062.50. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 555,344 shares of company stock worth $12,362,765 over the last quarter. 8.09% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Pinterest

Several hedge funds and other institutional investors have recently made changes to their positions in PINS. Forsta AP Fonden lifted its stake in Pinterest by 61.2% in the 4th quarter. Forsta AP Fonden now owns 397,400 shares of the company's stock valued at $10,289,000 after buying an additional 150,900 shares in the last quarter. Amundi boosted its holdings in shares of Pinterest by 38.3% during the first quarter. Amundi now owns 3,200,829 shares of the company's stock worth $58,703,000 after purchasing an additional 885,927 shares during the last quarter. Jefferies Financial Group Inc. purchased a new stake in Pinterest in the 4th quarter valued at about $12,812,000. Freemont Management S.A. acquired a new position in Pinterest during the fourth quarter worth approximately $2,540,000. Finally, Northwestern Mutual Investment Management Company LLC purchased a new position in shares of Pinterest in the 4th quarter worth $3,451,000. Institutional investors and hedge funds own 88.81% of the company's stock.

Pinterest Company Profile

Pinterest, Inc operates a visual discovery platform that helps users find inspiration and ideas for projects ranging from home design and fashion to cooking and travel. Users create and curate "Pins" — images or videos linked to content — organized on thematic boards. The service is available through its website and mobile applications and emphasizes personalized recommendations and visual search to surface relevant content based on user interests.

The company's primary revenue model is advertising, offering promoted content formats that integrate into user feeds and search results.

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