Pinterest (NYSE:PINS) Shares Gap Up – Should You Buy?

Pinterest, Inc. (NYSE:PINS) shares gapped up prior to trading on Tuesday . The stock had previously closed at $17.48, but opened at $18.33. Pinterest shares last traded at $18.3060, with a volume of 7,878,377 shares traded.

More Pinterest News

Here are the key news stories impacting Pinterest this week:

• Positive Sentiment: Elliott is making a $1.0 billion strategic investment; Pinterest says it will use the proceeds to fund share repurchases (including a $1.0 billion accelerated share repurchase). This directly reduces float, supports EPS, and signals activist backing. Article Title
• Positive Sentiment: Multiple outlets report larger buyback programs tied to the deal (reports vary between a $2.0 billion near‑term repurchase and a broader $3.5 billion program), which is a strong capital‑return signal and likely lifted investor sentiment. Article Title
• Positive Sentiment: Activist involvement from Elliott (a high‑profile investor) increases the likelihood of governance/strategic changes aimed at boosting shareholder value, which typically supports a rally in the stock. Article Title
• Neutral Sentiment: Reporting varies on the exact mechanics and total size of repurchases (ASR vs. multi‑tranche program); investors should watch the company’s filings and disclosures for precise terms and timing. Article Title
• Negative Sentiment: Analyst pressure remains: recent coverage includes a downgrade from Argus to Hold and a lowered price target from Goldman Sachs (though Goldman kept a Buy rating), reflecting continued analyst caution despite the corporate actions. Article Title
• Negative Sentiment: Fundamentals still show mixed signals — recent quarter narrowly missed EPS and revenue estimates and the stock remains below its longer‑term moving averages, so the rally could be vulnerable if execution or buyback details disappoint. Article Title

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $20.00 target price (down from $36.00) on shares of Pinterest in a report on Friday, February 13th. KeyCorp dropped their target price on shares of Pinterest from $40.00 to $35.00 and set an “overweight” rating for the company in a research report on Tuesday, February 3rd. Loop Capital lowered shares of Pinterest from a “buy” rating to a “hold” rating and reduced their price target for the company from $45.00 to $18.00 in a research report on Friday, February 13th. Evercore set a $25.00 price objective on shares of Pinterest and gave the stock an “in-line” rating in a report on Friday, February 13th. Finally, Deutsche Bank Aktiengesellschaft cut shares of Pinterest from a “buy” rating to a “hold” rating and set a $16.00 target price for the company. in a research note on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and nineteen have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Pinterest has an average rating of “Hold” and an average target price of $25.87.

Pinterest Trading Up 8.0%

The company has a 50 day moving average price of $22.56 and a 200 day moving average price of $28.29. The company has a market capitalization of $12.55 billion, a P/E ratio of 30.93, a P/E/G ratio of 1.21 and a beta of 0.93.

Pinterest (NYSE:PINS) last released its quarterly earnings results on Thursday, February 12th. The company reported $0.67 earnings per share for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.01). Pinterest had a net margin of 9.87% and a return on equity of 7.95%. The business had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same quarter in the previous year, the firm posted $0.56 earnings per share. The firm’s quarterly revenue was up 14.3% on a year-over-year basis. As a group, sell-side analysts forecast that Pinterest, Inc. will post 0.6 EPS for the current fiscal year.

Insider Activity

In related news, CFO Donnelly Julia Brau sold 22,821 shares of the company’s stock in a transaction dated Wednesday, December 24th. The shares were sold at an average price of $25.86, for a total value of $590,151.06. Following the sale, the chief financial officer owned 540,358 shares in the company, valued at $13,973,657.88. This represents a 4.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Malik Ducard sold 2,293 shares of the business’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $22.06, for a total value of $50,583.58. Following the sale, the insider directly owned 695,187 shares of the company’s stock, valued at $15,335,825.22. This represents a 0.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 33,407 shares of company stock valued at $855,925 in the last ninety days. 7.11% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in Pinterest by 1.8% in the 4th quarter. Vanguard Group Inc. now owns 62,056,069 shares of the company’s stock valued at $1,606,632,000 after buying an additional 1,069,646 shares during the last quarter. Price T Rowe Associates Inc. MD increased its holdings in Pinterest by 15.2% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 27,809,693 shares of the company’s stock worth $719,994,000 after buying an additional 3,669,476 shares during the last quarter. Victory Capital Management Inc. raised its position in Pinterest by 30.5% in the fourth quarter. Victory Capital Management Inc. now owns 26,808,870 shares of the company’s stock worth $694,082,000 after acquiring an additional 6,258,628 shares during the period. State Street Corp grew its position in shares of Pinterest by 52.6% during the 4th quarter. State Street Corp now owns 21,492,169 shares of the company’s stock valued at $556,432,000 after acquiring an additional 7,412,213 shares during the period. Finally, Ameriprise Financial Inc. increased its stake in shares of Pinterest by 10.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 19,732,086 shares of the company’s stock worth $634,767,000 after purchasing an additional 1,913,668 shares during the last quarter. 88.81% of the stock is owned by 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.