NerdWallet (NASDAQ:NRDS) Shares Gap Down After Earnings Miss

NerdWallet, Inc. (NASDAQ:NRDS) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $11.43, but opened at $7.91. NerdWallet shares last traded at $8.3050, with a volume of 358,965 shares.

The company reported $0.23 earnings per share for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.11). NerdWallet had a net margin of 7.56% and a return on equity of 18.07%. The business had revenue of $239.60 million during the quarter, compared to analyst estimates of $251.86 million. During the same quarter last year, the business posted $0.34 earnings per share. The business’s quarterly revenue was up 11.4% compared to the same quarter last year.

Analysts Set New Price Targets

Several equities research analysts have weighed in on NRDS shares. Weiss Ratings upgraded shares of NerdWallet from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, October 15th. William Blair downgraded shares of NerdWallet from an “outperform” rating to a “market perform” rating in a research note on Friday. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $12.83.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. New York State Teachers Retirement System acquired a new stake in shares of NerdWallet in the 1st quarter valued at $41,000. Nisa Investment Advisors LLC lifted its stake in shares of NerdWallet by 442.1% during the third quarter. Nisa Investment Advisors LLC now owns 8,597 shares of the company’s stock valued at $75,000 after acquiring an additional 7,011 shares during the period. State of Wyoming lifted its stake in shares of NerdWallet by 10.3% during the third quarter. State of Wyoming now owns 29,785 shares of the company’s stock valued at $262,000 after acquiring an additional 2,778 shares during the period. Ritholtz Wealth Management acquired a new position in shares of NerdWallet during the third quarter valued at $378,000. Finally, Squarepoint Ops LLC bought a new position in NerdWallet in the second quarter valued at about $508,000. 38.81% of the stock is currently owned by institutional investors.

NerdWallet Stock Down 26.6%

The firm has a fifty day moving average of $9.74 and a 200-day moving average of $9.83. The firm has a market cap of $536.51 million, a P/E ratio of 9.42 and a beta of 1.20.

NerdWallet Company Profile

NerdWallet, Inc is a personal finance company that operates a digital platform designed to help consumers make informed financial decisions. Its website and mobile tools provide educational content, personalized recommendations and comparison services across a range of financial products.

The company covers categories including credit cards, banking, personal and student loans, mortgages, insurance, investing and small-business finance. NerdWallet generates revenue primarily through partnerships with financial institutions and other providers when users engage with or apply for recommended products.

Founded in 2009 by Tim Chen and Jacob Gibson, NerdWallet is headquartered in San Francisco and serves consumers primarily in the United States.