Vimeo (NASDAQ:VMEO) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Vimeo's shares surged from a previous closing price of $3.82 to an opening price of $4.39 following a better-than-expected earnings report, with the stock last trading at $4.16.
• The company reported earnings per share (EPS) of $0.04, which exceeded analysts' expectations of a loss of $0.01, but its revenue fell short of estimates at $104.65 million.
• Several analysts have adjusted their price targets for Vimeo, with Piper Sandler lowering their target from $8.00 to $7.00, while Jefferies Financial Group reduced theirs from $7.00 to $5.40.

Shares of Vimeo, Inc. (NASDAQ:VMEO - Get Free Report) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $3.82, but opened at $4.39. Vimeo shares last traded at $4.16, with a volume of 1,000,584 shares traded.

The company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of ($0.01) by $0.05. The company had revenue of $104.65 million during the quarter, compared to the consensus estimate of $107.36 million. Vimeo had a return on equity of 4.26% and a net margin of 4.10%. The company's quarterly revenue was up .3% on a year-over-year basis. During the same quarter last year, the company earned $0.06 EPS.

Analysts Set New Price Targets

Several equities analysts recently commented on VMEO shares. Piper Sandler cut their target price on Vimeo from $8.00 to $7.00 and set an "overweight" rating for the company in a research report on Tuesday. Jefferies Financial Group cut their price objective on Vimeo from $7.00 to $5.40 and set a "hold" rating for the company in a research report on Monday, April 7th.

Hedge Funds Weigh In On Vimeo

Several institutional investors have recently bought and sold shares of the business. American Century Companies Inc. acquired a new stake in shares of Vimeo in the 4th quarter valued at $755,000. KLP Kapitalforvaltning AS acquired a new stake in shares of Vimeo in the 4th quarter valued at $204,000. Vanguard Group Inc. increased its stake in shares of Vimeo by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 17,432,831 shares of the company's stock valued at $111,570,000 after buying an additional 134,171 shares during the period. JPMorgan Chase & Co. increased its stake in shares of Vimeo by 85.1% in the 4th quarter. JPMorgan Chase & Co. now owns 600,387 shares of the company's stock valued at $3,842,000 after buying an additional 275,967 shares during the period. Finally, Norges Bank acquired a new stake in shares of Vimeo in the 4th quarter valued at $3,640,000. Institutional investors own 84.97% of the company's stock.

Vimeo Trading Up 8.8%

The company has a 50 day moving average price of $4.12 and a 200 day moving average price of $5.01. The company has a market capitalization of $684.49 million, a price-to-earnings ratio of 41.52 and a beta of 2.00.

Vimeo Company Profile

Vimeo, Inc, together with its subsidiaries, provides video software solutions worldwide. It provides the video tools through a software-as-a-service model, which enables its users to create, collaborate, and communicate with video on a single platform. The company also offers over-the-top OTT streaming and monetization services; AI-driven video creation and editing tools; and interactive and shoppable video tools.

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