QuinStreet (NASDAQ:QNST) Stock Price Down 4.2% - Should You Sell?

Key Points

• QuinStreet shares fell 4.2% to about $17.63 during Thursday trading, with volume roughly 60% below the average session level.
• Analysts remain broadly positive, with the stock carrying an average “Buy” rating and a $23.50 price target; several firms recently upgraded it to “Strong Buy.”
• The company exceeded quarterly expectations, reporting $0.50 in EPS and $373.88 million in revenue, but insiders have sold roughly $17.2 million of stock over the past 90 days.

QuinStreet, Inc. (NASDAQ:QNST - Get Free Report)'s stock price fell 4.2% during mid-day trading on Thursday . The company traded as low as $17.65 and last traded at $17.63. Approximately 330,147 shares changed hands during trading, a decline of 60% from the average session volume of 831,793 shares. The stock had previously closed at $18.40.

Wall Street Analyst Weigh In

Several research firms have recently commented on QNST. Lake Street Capital raised shares of QuinStreet from a "hold" rating to a "buy" rating and set a $21.00 price objective for the company in a research note on Friday, August 7th. Wall Street Zen upgraded shares of QuinStreet from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 29th. Weiss Ratings raised shares of QuinStreet from a "hold (c-)" rating to a "hold (c+)" rating in a research report on Thursday, August 27th. B. Riley Financial restated a "buy" rating on shares of QuinStreet in a research note on Friday, August 7th. Finally, Zacks Research raised QuinStreet from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 28th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $23.50.

QuinStreet Stock Down 4.3%

The company has a debt-to-equity ratio of 0.22, a current ratio of 1.22 and a quick ratio of 1.22. The company has a market cap of $1.01 billion, a PE ratio of 12.49 and a beta of 0.70. The business's 50 day moving average is $18.18 and its 200-day moving average is $14.58.

QuinStreet (NASDAQ:QNST - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The technology company reported $0.50 EPS for the quarter, beating analysts' consensus estimates of $0.44 by $0.06. QuinStreet had a net margin of 6.28% and a return on equity of 12.73%. The company had revenue of $373.88 million for the quarter, compared to the consensus estimate of $359.95 million. As a group, analysts predict that QuinStreet, Inc. will post 1.06 EPS for the current year.

Insider Buying and Selling at QuinStreet

In other QuinStreet news, CFO Gregory Wong sold 11,704 shares of the firm's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $20.44, for a total value of $239,229.76. Following the sale, the chief financial officer directly owned 481,786 shares in the company, valued at $9,847,705.84. This trade represents a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Asmau Ahmed sold 10,000 shares of QuinStreet stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $20.30, for a total value of $203,000.00. Following the sale, the director directly owned 24,979 shares of the company's stock, valued at $507,073.70. This trade represents a 28.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 839,969 shares of company stock worth $17,155,022 over the last ninety days. Corporate insiders own 5.00% of the company's stock.

Hedge Funds Weigh In On QuinStreet

A number of institutional investors and hedge funds have recently added to or reduced their stakes in QNST. BlackRock Inc. acquired a new stake in QuinStreet during the second quarter worth approximately $160,805,000. Lazard Asset Management LLC grew its position in shares of QuinStreet by 619.0% in the 1st quarter. Lazard Asset Management LLC now owns 1,441,113 shares of the technology company's stock valued at $17,308,000 after buying an additional 1,240,667 shares during the last quarter. Royce & Associates LP grew its position in shares of QuinStreet by 2.7% in the 4th quarter. Royce & Associates LP now owns 1,360,352 shares of the technology company's stock valued at $19,548,000 after buying an additional 35,145 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in QuinStreet by 2.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,200,335 shares of the technology company's stock worth $14,417,000 after acquiring an additional 23,886 shares in the last quarter. Finally, Jacobs Asset Management LLC raised its stake in QuinStreet by 21.6% during the 1st quarter. Jacobs Asset Management LLC now owns 1,134,300 shares of the technology company's stock worth $13,623,000 after acquiring an additional 201,800 shares in the last quarter. 97.83% of the stock is owned by institutional investors and hedge funds.

About QuinStreet

QuinStreet, Inc is a performance marketing and online marketplace company that connects consumers with brands and service providers. The company uses digital media, data, and technology to help businesses acquire customers through channels such as search, content, comparison websites, and its network of publishing partners.

QuinStreet operates in several high-value categories, including insurance, home services, financial services, and business-to-business services. Its products and platforms are designed to help consumers research and compare products or services while enabling advertisers to receive qualified leads, calls, and customer opportunities.

Founded in 1999, QuinStreet is headquartered in Foster City, California, and primarily serves the United States market.

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