Wall Street Zen Downgrades NerdWallet (NASDAQ:NRDS) to Buy

Key Points

• Wall Street Zen downgraded NerdWallet from "strong-buy" to "buy," while analyst coverage is mixed (four Buy, two Hold, one Sell), leaving a MarketBeat consensus rating of Hold with an average target of $15.00.
• Latest quarter beat expectations: NerdWallet reported $0.19 EPS vs. $0.17 expected and revenue of $225.4M (up 22.6% year-over-year), with the stock trading near $11 and a market cap around $735M.
• Notable insider selling: insiders sold 86,043 shares (~$901K) in the last quarter, reducing positions, though insiders still reportedly own 46.54% of the company.

NerdWallet (NASDAQ:NRDS - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Saturday.

Other equities analysts have also recently issued reports about the stock. Morgan Stanley cut shares of NerdWallet from an "equal weight" rating to an "underweight" rating and decreased their price objective for the company from $14.00 to $9.00 in a research report on Friday, March 13th. Oppenheimer dropped their target price on NerdWallet from $18.00 to $15.00 and set an "outperform" rating on the stock in a research report on Wednesday, March 4th. Zacks Research upgraded NerdWallet from a "strong sell" rating to a "hold" rating in a research note on Friday, March 27th. Finally, Truist Financial reduced their price target on NerdWallet from $19.00 to $18.00 and set a "buy" rating for the company in a report on Thursday, February 26th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $15.00.

NerdWallet Stock Up 1.6%

NASDAQ NRDS opened at $11.01 on Friday. NerdWallet has a fifty-two week low of $8.34 and a fifty-two week high of $16.24. The business has a 50 day moving average price of $10.55 and a two-hundred day moving average price of $12.08. The stock has a market cap of $735.36 million, a PE ratio of 17.20 and a beta of 1.34.

NerdWallet (NASDAQ:NRDS - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The company reported $0.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.17 by $0.02. The company had revenue of $225.40 million for the quarter, compared to analyst estimates of $211.37 million. NerdWallet had a net margin of 5.82% and a return on equity of 12.66%. The business's quarterly revenue was up 22.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.51 earnings per share. Sell-side analysts anticipate that NerdWallet will post 0.88 EPS for the current fiscal year.

Insider Buying and Selling at NerdWallet

In other news, insider Samuel Yount sold 71,988 shares of the firm's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $10.32, for a total value of $742,916.16. Following the transaction, the insider directly owned 173,973 shares in the company, valued at approximately $1,795,401.36. This trade represents a 29.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Nicholas Tatum sold 10,151 shares of NerdWallet stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $11.45, for a total transaction of $116,228.95. Following the completion of the transaction, the chief accounting officer directly owned 47,202 shares of the company's stock, valued at $540,462.90. This trade represents a 17.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 86,043 shares of company stock valued at $901,317. 46.54% of the stock is owned by insiders.

Hedge Funds Weigh In On NerdWallet

Large investors have recently bought and sold shares of the business. Covestor Ltd acquired a new position in NerdWallet in the fourth quarter valued at approximately $34,000. New York State Teachers Retirement System acquired a new stake in shares of NerdWallet during the 1st quarter worth approximately $41,000. Tower Research Capital LLC TRC lifted its holdings in shares of NerdWallet by 37.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,893 shares of the company's stock worth $43,000 after purchasing an additional 1,054 shares during the last quarter. Polymer Capital Management US LLC bought a new stake in shares of NerdWallet in the 3rd quarter worth approximately $111,000. Finally, Olympiad Research LP acquired a new position in NerdWallet during the 3rd quarter valued at approximately $119,000. Institutional investors own 38.81% of the company's stock.

About NerdWallet

NerdWallet NASDAQ: NRDS is a personal finance company that offers independent guidance and comparison tools to help consumers make informed financial decisions. Through its website and mobile application, NerdWallet provides a wide range of content, including articles, calculators and reviews covering credit cards, mortgages, personal loans, banking products, investing, insurance and taxes. The platform aggregates partner offers to enable side-by-side comparisons, while editorially maintaining objectivity to support users in identifying the products that best suit their individual needs.

Founded in 2009 by Tim Chen and Jacob Gibson, NerdWallet is headquartered in San Francisco and serves consumers primarily in the United States, with additional localized offerings in Canada and the United Kingdom.

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