Wall Street Zen Downgrades Procore Technologies (NYSE:PCOR) to Hold

Key Points

• Wall Street Zen downgraded Procore Technologies (PCOR) from a "buy" to a "hold," and multiple firms have trimmed price targets, leaving a consensus rating of Moderate Buy with an average target of $73.75.
• Shares opened around $59.43, trading below the 200‑day moving average ($64.65) and well under the average target; the company has a market cap of about $8.96B and a negative P/E (-88.71), highlighting valuation concerns.
• Procore beat recent EPS and revenue estimates with revenue up 15.6%, but remains unprofitable (net margin -7.62%, negative ROE), and insiders sold roughly 148,026 shares in the past three months, including a substantial sale by the chairman.

Procore Technologies (NYSE:PCOR - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

PCOR has been the topic of several other reports. Stifel Nicolaus decreased their target price on shares of Procore Technologies from $85.00 to $63.00 and set a "buy" rating on the stock in a research report on Friday, February 13th. KeyCorp decreased their target price on shares of Procore Technologies from $91.00 to $80.00 and set an "overweight" rating on the stock in a research report on Friday, February 6th. TD Cowen decreased their target price on shares of Procore Technologies from $85.00 to $75.00 and set a "buy" rating on the stock in a research report on Tuesday, April 21st. Canaccord Genuity Group decreased their target price on shares of Procore Technologies from $90.00 to $72.00 and set a "buy" rating on the stock in a research report on Friday, February 13th. Finally, The Goldman Sachs Group decreased their target price on shares of Procore Technologies from $90.00 to $75.00 and set a "buy" rating on the stock in a research report on Monday, February 9th. Fifteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $73.75.

Procore Technologies Stock Performance

NYSE:PCOR opened at $59.43 on Friday. The firm's 50-day moving average is $55.59 and its 200-day moving average is $64.65. Procore Technologies has a 52-week low of $46.08 and a 52-week high of $82.32. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.32 and a current ratio of 1.32. The company has a market cap of $8.96 billion, a price-to-earnings ratio of -88.71 and a beta of 0.78.

Procore Technologies (NYSE:PCOR - Get Free Report) last posted its quarterly earnings data on Thursday, February 12th. The company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.02. Procore Technologies had a negative net margin of 7.62% and a negative return on equity of 3.96%. The company had revenue of $349.11 million for the quarter, compared to the consensus estimate of $340.80 million. During the same quarter in the previous year, the firm posted $0.01 EPS. The business's revenue was up 15.6% compared to the same quarter last year. Equities research analysts anticipate that Procore Technologies will post 0.09 earnings per share for the current year.

Insiders Place Their Bets

In other Procore Technologies news, Chairman Craig F. Jr. Courtemanche sold 56,122 shares of the business's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $47.64, for a total value of $2,673,652.08. Following the completion of the transaction, the chairman directly owned 927,580 shares of the company's stock, valued at approximately $44,189,911.20. The trade was a 5.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Connor Kevin J. O sold 9,615 shares of the business's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $54.48, for a total transaction of $523,825.20. Following the completion of the transaction, the director directly owned 1,012,136 shares of the company's stock, valued at approximately $55,141,169.28. This represents a 0.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 148,026 shares of company stock valued at $7,783,734. Insiders own 21.50% of the company's stock.

Hedge Funds Weigh In On Procore Technologies

A number of institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in shares of Procore Technologies by 6.5% in the fourth quarter. Vanguard Group Inc. now owns 13,158,506 shares of the company's stock worth $957,150,000 after acquiring an additional 804,920 shares during the last quarter. Alliancebernstein L.P. raised its stake in shares of Procore Technologies by 493.9% during the third quarter. Alliancebernstein L.P. now owns 6,107,945 shares of the company's stock worth $445,391,000 after buying an additional 5,079,534 shares during the last quarter. Wasatch Advisors LP raised its stake in shares of Procore Technologies by 6.8% during the third quarter. Wasatch Advisors LP now owns 4,972,025 shares of the company's stock worth $362,560,000 after buying an additional 315,604 shares during the last quarter. Wellington Management Group LLP raised its stake in shares of Procore Technologies by 4.0% during the fourth quarter. Wellington Management Group LLP now owns 3,539,062 shares of the company's stock worth $257,431,000 after buying an additional 137,171 shares during the last quarter. Finally, Principal Financial Group Inc. raised its stake in shares of Procore Technologies by 3.9% during the fourth quarter. Principal Financial Group Inc. now owns 3,428,825 shares of the company's stock worth $249,416,000 after buying an additional 127,256 shares during the last quarter. 81.10% of the stock is owned by institutional investors.

About Procore Technologies

Procore Technologies, Inc engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company's platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office.

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