Vimeo (NASDAQ:VMEO) Shares Gap Up on Strong Earnings

Vimeo, Inc. (NASDAQ:VMEO) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $3.55, but opened at $4.12. Vimeo shares last traded at $4.00, with a volume of 482,176 shares trading hands.

The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.01 by $0.05. The company had revenue of $104.38 million during the quarter, compared to analysts’ expectations of $99.45 million. Vimeo had a net margin of 6.88% and a return on equity of 7.71%. The business’s revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.03 EPS.

Wall Street Analyst Weigh In

Several brokerages have recently commented on VMEO. Piper Sandler boosted their target price on shares of Vimeo from $4.50 to $5.00 and gave the company a “neutral” rating in a research report on Tuesday. Truist Financial boosted their target price on shares of Vimeo from $6.00 to $7.00 and gave the stock a “buy” rating in a report on Tuesday.

Insider Activity

In related news, CEO Philip D. Moyer bought 32,051 shares of the company’s stock in a transaction that occurred on Wednesday, August 7th. The shares were bought at an average price of $4.67 per share, for a total transaction of $149,678.17. Following the transaction, the chief executive officer now directly owns 1,712,490 shares of the company’s stock, valued at $7,997,328.30. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 6.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. raised its holdings in shares of Vimeo by 75.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 5,493,555 shares of the company’s stock valued at $21,535,000 after purchasing an additional 2,360,405 shares during the last quarter. Acadian Asset Management LLC boosted its position in Vimeo by 3.8% during the second quarter. Acadian Asset Management LLC now owns 1,880,837 shares of the company’s stock worth $7,013,000 after purchasing an additional 68,195 shares during the period. Mirae Asset Global Investments Co. Ltd. boosted its position in Vimeo by 10.9% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,776,051 shares of the company’s stock worth $6,962,000 after purchasing an additional 174,892 shares during the period. Kent Lake Capital LLC bought a new position in Vimeo during the first quarter worth about $5,112,000. Finally, Charles Schwab Investment Management Inc. boosted its position in Vimeo by 3.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,239,238 shares of the company’s stock worth $4,858,000 after purchasing an additional 37,824 shares during the period. Institutional investors and hedge funds own 84.97% of the company’s stock.

Vimeo Stock Up 2.1 %

The stock has a market cap of $756.62 million, a P/E ratio of 26.29 and a beta of 2.03. The business’s 50-day simple moving average is $3.79 and its two-hundred day simple moving average is $4.00.

About Vimeo

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.