QuinStreet (NASDAQ:QNST) Reaches New 12-Month High on Earnings Beat

Key Points

• QuinStreet shares hit a new 52-week high after the company reported quarterly EPS of $0.50, beating estimates by $0.06, while revenue of $373.88 million also exceeded expectations.
• Analyst sentiment improved, with several firms upgrading the stock; QuinStreet now has a consensus “Moderate Buy” rating and an average price target of $22.00.
• Institutional investors own 97.83% of the company, with several major funds increasing their stakes, while CFO Gregory Wong sold shares under a pre-arranged Rule 10b5-1 trading plan.

Shares of QuinStreet, Inc. (NASDAQ:QNST - Get Free Report) reached a new 52-week high on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $19.69 and last traded at $19.6890, with a volume of 10234 shares changing hands. The stock had previously closed at $15.22.

The technology company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.44 by $0.06. QuinStreet had a net margin of 5.53% and a return on equity of 9.97%. The business had revenue of $373.88 million during the quarter, compared to analyst estimates of $359.95 million.

Analyst Ratings Changes

Several research firms have recently weighed in on QNST. Weiss Ratings raised QuinStreet from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, July 9th. Wall Street Zen raised shares of QuinStreet from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. Zacks Research upgraded shares of QuinStreet from a "strong sell" rating to a "hold" rating in a research report on Thursday, July 30th. Finally, Lake Street Capital upgraded shares of QuinStreet from a "hold" rating to a "buy" rating and set a $21.00 target price for the company in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $22.00.

Insider Activity at QuinStreet

In related news, CFO Gregory Wong sold 10,338 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $15.00, for a total value of $155,070.00. Following the completion of the transaction, the chief financial officer directly owned 390,344 shares of the company's stock, valued at approximately $5,855,160. This represents a 2.58% decrease in their position. The transaction was disclosed in a document filed 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. Insiders own 5.00% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in QNST. Lazard Asset Management LLC boosted its stake in shares of QuinStreet by 619.0% in the first 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 in the last quarter. Balyasny Asset Management L.P. lifted its holdings in QuinStreet by 1,000.3% in the fourth quarter. Balyasny Asset Management L.P. now owns 900,264 shares of the technology company's stock valued at $12,937,000 after acquiring an additional 1,000,264 shares during the period. Heartland Advisors Inc. acquired a new position in shares of QuinStreet during the 1st quarter worth $6,005,000. Millennium Management LLC increased its holdings in shares of QuinStreet by 213.3% in the 1st quarter. Millennium Management LLC now owns 714,482 shares of the technology company's stock valued at $12,746,000 after purchasing an additional 486,406 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in QuinStreet by 42.1% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,595,184 shares of the technology company's stock valued at $22,923,000 after purchasing an additional 472,407 shares during the last quarter. Hedge funds and other institutional investors own 97.83% of the company's stock.

QuinStreet Stock Performance

The company has a market capitalization of $1.14 billion, a PE ratio of 17.59 and a beta of 0.66. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.18 and a current ratio of 1.18. The stock's fifty day simple moving average is $14.60 and its 200-day simple moving average is $13.11.

QuinStreet Company Profile

QuinStreet, Inc operates a technology-based performance marketing platform that connects companies with prospective customers across multiple verticals. The company specializes in data-driven lead generation for financial services, education, insurance, healthcare, and home services firms. By leveraging proprietary targeting algorithms and real-time analytics, QuinStreet manages customized digital marketing campaigns to optimize customer acquisition and retention for its clients.

Through a portfolio of consumer-facing websites and comparison platforms, QuinStreet delivers targeted visitors who are actively researching products and services.

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