Similarweb (NYSE:SMWB) Shares Climb 7.7% - Should You Buy?

Key Points

• Similarweb shares rose 7.7% to $9.08 in mid-day trading, above the company’s 50-day moving average of $8.25 and 200-day average of $5.70.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and a $9.71 target price; Barclays and Needham each set an $11 target.
• The company reported $0.06 in quarterly EPS on $77.19 million in revenue but remains unprofitable, while insiders have sold 1.76 million shares worth about $15.2 million over the past three months.

Similarweb Ltd. (NYSE:SMWB - Get Free Report)'s share price traded up 7.7% during mid-day trading on Friday. The stock traded as high as $9.07 and last traded at $9.0750. 583,435 shares changed hands during trading, a decline of 31% from the average session volume of 848,793 shares. The stock had previously closed at $8.43.

Analyst Upgrades and Downgrades

SMWB has been the topic of a number of analyst reports. Barclays lifted their price objective on shares of Similarweb from $5.00 to $11.00 and gave the company an "overweight" rating in a research report on Thursday, August 13th. Citigroup lifted their target price on shares of Similarweb from $7.00 to $9.00 and gave the company a "neutral" rating in a report on Thursday, August 13th. Needham & Company LLC upgraded shares of Similarweb from a "hold" rating to a "buy" rating and set a $11.00 price target for the company in a report on Wednesday, September 16th. Weiss Ratings restated a "sell (e+)" rating on shares of Similarweb in a research report on Wednesday, August 12th. Finally, Zacks Research raised shares of Similarweb from a "hold" rating to a "strong-buy" rating in a report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $9.71.

Similarweb Price Performance

The company has a 50-day moving average price of $8.25 and a 200-day moving average price of $5.70. The firm has a market capitalization of $792.35 million, a PE ratio of -36.28 and a beta of 1.30.

Similarweb (NYSE:SMWB - Get Free Report) last announced its earnings results on Wednesday, August 12th. The company reported $0.06 earnings per share for the quarter. The firm had revenue of $77.19 million during the quarter. Similarweb had a negative net margin of 7.37% and a negative return on equity of 19.81%.

Insider Activity

In related news, CEO Or Offer sold 114,300 shares of Similarweb stock in a transaction on Thursday, September 24th. The stock was sold at an average price of $7.69, for a total value of $878,967.00. Following the transaction, the chief executive officer owned 3,930,481 shares in the company, valued at approximately $30,225,398.89. This trade represents a 2.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 1,760,534 shares of company stock worth $15,163,145. 62.40% of the stock is owned by insiders.

Institutional Trading of Similarweb

Large investors have recently added to or reduced their stakes in the stock. Integrated Wealth Concepts LLC purchased a new stake in shares of Similarweb in the second quarter valued at $92,000. Wellington Management Group LLP lifted its stake in Similarweb by 22.2% in the second quarter. Wellington Management Group LLP now owns 3,624,685 shares of the company's stock valued at $22,219,000 after acquiring an additional 657,928 shares during the last quarter. Militia Capital Management LLC acquired a new stake in shares of Similarweb in the 1st quarter valued at $616,000. Lavelle Capital LP acquired a new position in Similarweb during the first quarter worth $529,000. Finally, Bank of America Corp DE raised its holdings in Similarweb by 475.3% during the first quarter. Bank of America Corp DE now owns 63,985 shares of the company's stock valued at $167,000 after buying an additional 52,863 shares in the last quarter. 57.59% of the stock is currently owned by institutional investors and hedge funds.

About Similarweb

Similarweb Ltd. NYSE: SMWB provides digital intelligence and market research solutions that help businesses understand online activity and competitive dynamics. Its platform analyzes digital behavior across websites and mobile applications, offering insights into audience interests, traffic sources, engagement, user journeys and industry trends.

The company serves customers across a range of industries, including technology, retail, financial services, media and advertising. Its products support marketing, sales, business development, investor research and strategy teams by helping them identify market opportunities, evaluate competitors, assess customer demand and monitor digital performance.

Similarweb was founded in 2007 by Or Offer and Nir Cohen and is headquartered in Israel, with operations and customers serving markets internationally.

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