Wells Fargo & Company Forecasts Strong Price Appreciation for Pinterest (NYSE:PINS) Stock

Key Points

• Wells Fargo raised its price target on Pinterest from $28 to $30 and kept an overweight rating, implying about 35% upside from the prior close.
• Other analysts remain mixed on the stock: the overall consensus is still Hold, with an average price target of $27.47 despite several recent target increases.
• Pinterest recently beat quarterly expectations, reporting EPS of $0.27 versus $0.22 expected and revenue of $1.01 billion, up 17.8% year over year.

Pinterest (NYSE:PINS - Get Free Report) had its price target upped by research analysts at Wells Fargo & Company from $28.00 to $30.00 in a report released on Tuesday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Wells Fargo & Company's price objective would suggest a potential upside of 34.92% from the company's previous close.

A number of other research analysts have also recently weighed in on PINS. Piper Sandler restated a "neutral" rating and issued a $26.00 price target (up from $21.00) on shares of Pinterest in a research report on Tuesday, May 5th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Pinterest in a research report on Tuesday, June 30th. Royal Bank Of Canada increased their price objective on shares of Pinterest from $17.00 to $23.00 and gave the company a "sector perform" rating in a research note on Tuesday, May 5th. JPMorgan Chase & Co. raised their target price on shares of Pinterest from $20.00 to $25.00 and gave the company a "neutral" rating in a report on Tuesday, May 5th. Finally, Mizuho lifted their target price on shares of Pinterest from $28.00 to $30.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 5th. Sixteen research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $27.47.

Pinterest Price Performance

PINS stock opened at $22.23 on Tuesday. The firm has a 50 day moving average of $20.55 and a 200-day moving average of $20.97. Pinterest has a 12-month low of $13.84 and a 12-month high of $39.93. The company has a current ratio of 4.23, a quick ratio of 4.23 and a debt-to-equity ratio of 0.34. The company has a market cap of $12.46 billion, a price-to-earnings ratio of 46.32, a PEG ratio of 1.24 and a beta of 0.89.

Pinterest (NYSE:PINS - Get Free Report) last released its quarterly earnings results on Monday, May 4th. The company reported $0.27 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.05. Pinterest had a return on equity of 8.26% and a net margin of 7.64%.The business had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $965.84 million. During the same quarter in the prior year, the firm posted $0.23 EPS. The company's revenue was up 17.8% compared to the same quarter last year. As a group, equities analysts expect that Pinterest will post 0.66 EPS for the current fiscal year.

Insider Activity

In other news, insider Wanjiku Juanita Walcott sold 14,208 shares of the company's stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $19.65, for a total value of $279,187.20. Following the sale, the insider directly owned 691,840 shares in the company, valued at $13,594,656. This represents a 2.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Benjamin Silbermann sold 46,875 shares of the stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $21.45, for a total value of $1,005,468.75. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 279,070 shares of company stock worth $5,817,283 over the last three months. 8.09% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Pinterest

A number of hedge funds and other institutional investors have recently modified their holdings of PINS. Yousif Capital Management LLC increased its holdings in Pinterest by 2,298.3% in the fourth quarter. Yousif Capital Management LLC now owns 185,170 shares of the company's stock valued at $4,701,000 after purchasing an additional 177,449 shares during the last quarter. Korea Investment CORP raised its holdings in Pinterest by 82.7% during the 3rd quarter. Korea Investment CORP now owns 703,483 shares of the company's stock worth $22,631,000 after buying an additional 318,351 shares during the period. Forsta AP Fonden lifted its position in Pinterest by 61.2% in the 4th quarter. Forsta AP Fonden now owns 397,400 shares of the company's stock valued at $10,289,000 after acquiring an additional 150,900 shares in the last quarter. Jefferies Financial Group Inc. acquired a new position in shares of Pinterest during the fourth quarter worth about $12,812,000. Finally, KLP Kapitalforvaltning AS grew its stake in shares of Pinterest by 103.4% during the 4th quarter. KLP Kapitalforvaltning AS now owns 838,500 shares of the company's stock worth $21,709,000 after acquiring an additional 426,300 shares in the last quarter. 88.81% of the stock is currently owned by hedge funds and other institutional investors.

Pinterest Company Profile

Pinterest, Inc operates a visual discovery platform that helps users find inspiration and ideas for projects ranging from home design and fashion to cooking and travel. Users create and curate "Pins" — images or videos linked to content — organized on thematic boards. The service is available through its website and mobile applications and emphasizes personalized recommendations and visual search to surface relevant content based on user interests.

The company's primary revenue model is advertising, offering promoted content formats that integrate into user feeds and search results.

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