Similarweb (NYSE:SMWB) Shares Gap Up - Should You Buy?

Key Points

• Similarweb shares saw a significant pre-market increase, opening at $8.47 after a previous close of $7.10, but the stock last traded at $8.16 with a volume of 298,375 shares.
• Several analysts have revised their target prices for Similarweb, with Citigroup lowering it from $13.00 to $11.00 while maintaining a "buy" rating, and Barclays reducing it from $15.00 to $10.00.
• Despite a quarterly earnings miss, Similarweb reported revenue of $67.09 million, slightly above analysts' expectations, and hedge funds have shown increased interest in the stock with over 57% owned by institutional investors.

Similarweb Ltd. (NYSE:SMWB - Get Free Report) shares gapped up prior to trading on Wednesday . The stock had previously closed at $7.10, but opened at $8.47. Similarweb shares last traded at $8.16, with a volume of 298,375 shares trading hands.

Analyst Ratings Changes

Several research analysts have issued reports on SMWB shares. Citigroup dropped their target price on shares of Similarweb from $13.00 to $11.00 and set a "buy" rating on the stock in a report on Friday, August 1st. Barclays cut their target price on shares of Similarweb from $15.00 to $10.00 and set an "overweight" rating for the company in a report on Thursday, May 15th. Finally, The Goldman Sachs Group cut their target price on shares of Similarweb from $13.00 to $10.00 and set a "buy" rating for the company in a report on Thursday, April 17th. Eight research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, Similarweb presently has an average rating of "Buy" and an average target price of $15.00.

Similarweb Stock Up 18.4%

The stock has a fifty day moving average of $8.10 and a 200-day moving average of $8.89. The stock has a market capitalization of $713.25 million, a price-to-earnings ratio of -38.15 and a beta of 1.11.

Similarweb (NYSE:SMWB - Get Free Report) last released its quarterly earnings data on Tuesday, May 13th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.09). Similarweb had a negative return on equity of 71.14% and a negative net margin of 6.97%. The business had revenue of $67.09 million during the quarter, compared to analysts' expectations of $66.37 million. On average, equities analysts forecast that Similarweb Ltd. will post -0.24 EPS for the current fiscal year.

Hedge Funds Weigh In On Similarweb

Hedge funds and other institutional investors have recently modified their holdings of the company. Herald Investment Management Ltd purchased a new stake in shares of Similarweb during the 1st quarter valued at about $2,478,000. BNP Paribas Financial Markets purchased a new stake in Similarweb during the 4th quarter worth approximately $1,254,000. Bank of America Corp DE increased its holdings in Similarweb by 145.0% during the 4th quarter. Bank of America Corp DE now owns 276,935 shares of the company's stock worth $3,924,000 after purchasing an additional 163,919 shares during the last quarter. Marshall Wace LLP increased its holdings in Similarweb by 22.8% during the 4th quarter. Marshall Wace LLP now owns 358,736 shares of the company's stock worth $5,083,000 after purchasing an additional 66,514 shares during the last quarter. Finally, Renaissance Technologies LLC increased its holdings in Similarweb by 17.2% during the 4th quarter. Renaissance Technologies LLC now owns 380,873 shares of the company's stock worth $5,397,000 after purchasing an additional 55,873 shares during the last quarter. 57.59% of the stock is owned by institutional investors and hedge funds.

About Similarweb

Similarweb Ltd. provides cloud-based digital intelligence solutions in the United States, Europe, the Asia Pacific, the United Kingdom, Israel, and internationally. The company offers digital research intelligence solutions for its customers to benchmark performance against competitors and market leaders, analyze trends in the market, conduct deeper research into specific companies, and analyze audience behavior; and digital marketing intelligence solutions for its customers to understand their competitors' online acquisition strategies in each marketing channel, and optimize their own strategies.

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