Procore Technologies (NYSE:PCOR) Shares Gap Down on Analyst Downgrade

Key Points

• Procore Technologies shares fell at the open after Barclays cut its price target from $65 to $50, even though the firm kept an overweight rating. The stock opened below its prior close and traded around the low-$40s.
• Analyst sentiment remains mostly positive overall, with an average Moderate Buy rating and a consensus price target of about $70.33. Still, recent moves have been mixed, including some target cuts and at least one downgrade to hold.
• Recent fundamentals and insider activity were mixed: Procore beat revenue estimates but missed EPS in its latest quarter, and insiders have sold shares over the past three months. The company also remains unprofitable, with a negative net margin and return on equity.

Procore Technologies, Inc. (NYSE:PCOR - Get Free Report) gapped down before the market opened on Tuesday after Barclays lowered their price target on the stock from $65.00 to $50.00. The stock had previously closed at $44.03, but opened at $41.83. Barclays currently has an overweight rating on the stock. Procore Technologies shares last traded at $43.5570, with a volume of 240,634 shares traded.

A number of other equities research analysts also recently weighed in on PCOR. Citizens Jmp upgraded Procore Technologies from a "market perform" rating to a "market outperform" rating and set a $71.00 price target for the company in a report on Wednesday, April 29th. The Goldman Sachs Group decreased their price objective on Procore Technologies from $80.00 to $70.00 and set a "buy" rating for the company in a report on Thursday, May 7th. UBS Group dropped their price target on shares of Procore Technologies from $74.00 to $68.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Procore Technologies in a research note on Monday, July 6th. Finally, Wall Street Zen lowered shares of Procore Technologies from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Fourteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Procore Technologies has an average rating of "Moderate Buy" and an average price target of $70.33.

Insider Activity

In other Procore Technologies news, Chairman Craig F. Jr. Courtemanche sold 56,122 shares of the business's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $45.14, for a total transaction of $2,533,347.08. Following the sale, the chairman owned 919,704 shares in the company, valued at approximately $41,515,438.56. The trade was a 5.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Connor Kevin J. O sold 5,769 shares of the business's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $41.93, for a total value of $241,894.17. Following the sale, the director owned 967,901 shares in the company, valued at approximately $40,584,088.93. The trade was a 0.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 139,268 shares of company stock valued at $6,622,714 over the last three months. Insiders own 16.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. SJS Investment Consulting Inc. lifted its position in shares of Procore Technologies by 7,100.0% in the 1st quarter. SJS Investment Consulting Inc. now owns 432 shares of the company's stock valued at $25,000 after acquiring an additional 426 shares in the last quarter. Wilmington Savings Fund Society FSB acquired a new stake in Procore Technologies during the 3rd quarter valued at $34,000. V Square Quantitative Management LLC acquired a new stake in Procore Technologies during the 4th quarter valued at $41,000. Allworth Financial LP lifted its holdings in shares of Procore Technologies by 48.2% in the fourth quarter. Allworth Financial LP now owns 627 shares of the company's stock valued at $46,000 after purchasing an additional 204 shares in the last quarter. Finally, Employees Retirement System of Texas purchased a new stake in shares of Procore Technologies in the fourth quarter valued at $54,000. 81.10% of the stock is owned by hedge funds and other institutional investors.

Procore Technologies Price Performance

The company has a market cap of $6.53 billion, a PE ratio of -85.04 and a beta of 0.75. The stock has a fifty day moving average price of $45.65 and a 200-day moving average price of $54.44. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.12 and a quick ratio of 1.12.

Procore Technologies (NYSE:PCOR - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.36 by ($0.02). The business had revenue of $359.28 million for the quarter, compared to analyst estimates of $352.82 million. Procore Technologies had a negative net margin of 5.61% and a negative return on equity of 2.24%. The firm's quarterly revenue was up 15.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.23 earnings per share. On average, equities analysts expect that Procore Technologies, Inc. will post 0.06 earnings per share for the current year.

About Procore Technologies

Procore Technologies, Inc engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company's platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office.

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