Similarweb (NYSE:SMWB) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Similarweb reported better-than-expected quarterly results, with earnings of $0.06 per share versus the $0.03 consensus estimate and revenue of $77.19 million, exceeding expectations of $75.57 million.
• The stock opened at $8.00 after previously closing at $7.25 and last traded around $8.22. Analysts’ average price target is $9.00, but the consensus rating remains “Hold”.
• Insiders purchased 271,105 shares worth approximately $1.02 million over the past three months, while institutional investors own 57.59% of the company.

Similarweb Ltd. (NYSE:SMWB - Get Free Report) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $7.25, but opened at $8.00. Similarweb shares last traded at $8.2220, with a volume of 850,868 shares trading hands.

The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.03 by $0.03. Similarweb had a negative net margin of 10.38% and a negative return on equity of 48.57%. The firm had revenue of $77.19 million during the quarter, compared to analyst estimates of $75.57 million.

Analysts Set New Price Targets

SMWB has been the topic of several recent research reports. Citigroup increased their price target on shares of Similarweb from $3.00 to $7.00 and gave the stock a "neutral" rating in a research report on Thursday, July 9th. Barclays cut their price objective on shares of Similarweb from $7.00 to $5.00 and set an "overweight" rating for the company in a research report on Monday, April 20th. Oppenheimer upped their price objective on Similarweb from $7.00 to $8.50 and gave the stock an "outperform" rating in a research note on Wednesday, August 5th. Finally, Northland Securities raised Similarweb from a "market perform" rating to an "outperform" rating and set a $10.00 target price on the stock in a report on Wednesday. Four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Similarweb has a consensus rating of "Hold" and an average target price of $9.00.

Insider Activity

In other news, Director Harel Moshe Beit-On acquired 75,000 shares of Similarweb stock in a transaction dated Wednesday, May 20th. The stock was purchased at an average cost of $3.89 per share, with a total value of $291,750.00. Following the completion of the purchase, the director directly owned 10,885,778 shares in the company, valued at approximately $42,345,676.42. This trade represents a 0.69% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Barak Eilam acquired 50,000 shares of the firm's stock in a transaction dated Thursday, May 21st. The shares were purchased at an average price of $3.86 per share, for a total transaction of $193,000.00. Following the completion of the transaction, the director directly owned 101,315 shares in the company, valued at approximately $391,075.90. This trade represents a 97.44% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders have acquired 271,105 shares of company stock valued at $1,020,726.

Institutional Investors Weigh In On Similarweb

A number of institutional investors and hedge funds have recently bought and sold shares of SMWB. Phoenix Financial Ltd. boosted its stake in shares of Similarweb by 43.2% in the fourth quarter. Phoenix Financial Ltd. now owns 4,285,786 shares of the company's stock worth $32,101,000 after acquiring an additional 1,292,700 shares during the period. Wellington Management Group LLP raised its stake in Similarweb by 163.6% during the 3rd quarter. Wellington Management Group LLP now owns 2,457,805 shares of the company's stock valued at $22,858,000 after purchasing an additional 1,525,230 shares during the period. Nuveen LLC lifted its holdings in Similarweb by 2.5% in the 4th quarter. Nuveen LLC now owns 1,520,398 shares of the company's stock worth $11,388,000 after purchasing an additional 37,457 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its stake in Similarweb by 2.6% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 944,552 shares of the company's stock worth $8,784,000 after purchasing an additional 23,881 shares during the period. Finally, New York State Common Retirement Fund grew its holdings in Similarweb by 0.4% during the 4th quarter. New York State Common Retirement Fund now owns 852,915 shares of the company's stock valued at $6,388,000 after buying an additional 3,170 shares in the last quarter. 57.59% of the stock is owned by institutional investors.

Similarweb Stock Performance

The firm has a market capitalization of $722.80 million, a PE ratio of -23.57 and a beta of 1.14. The business's fifty day simple moving average is $6.06 and its 200-day simple moving average is $4.29.

Similarweb Company Profile

Similarweb Ltd. NYSE: SMWB is a digital intelligence company that provides insights into website and mobile app performance. Its cloud-based platform aggregates and analyzes data on global web traffic, user engagement, and referral sources, enabling businesses to benchmark their digital presence against competitors. The company’s core offering includes metrics on audience behavior, traffic acquisition channels, and industry trends, which are designed to inform strategic decisions in marketing, sales, and product development.

Similarweb’s platform delivers a suite of tools for market research, competitor analysis, and performance optimization.

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