NerdWallet (NASDAQ:NRDS) Shares Down 6.5% Following Analyst Downgrade

NerdWallet, Inc. (NASDAQ:NRDS) shares traded down 6.5% during mid-day trading on Monday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $12.94 and last traded at $12.99. 79,390 shares traded hands during trading, a decline of 87% from the average session volume of 620,470 shares. The stock had previously closed at $13.90.

Several other analysts have also recently issued reports on the company. KeyCorp upped their target price on shares of NerdWallet from $15.00 to $16.00 and gave the stock an “overweight” rating in a research report on Friday, November 7th. Weiss Ratings reissued a “hold (c)” rating on shares of NerdWallet in a report on Wednesday, October 8th. Barclays lifted their target price on NerdWallet from $14.00 to $17.00 and gave the stock an “overweight” rating in a report on Friday, November 7th. Morgan Stanley increased their price target on NerdWallet from $12.00 to $14.00 and gave the company an “equal weight” rating in a research note on Monday, November 10th. Finally, Truist Financial lifted their price objective on NerdWallet from $17.00 to $19.00 and gave the stock a “buy” rating in a research note on Monday, November 10th. Three equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $15.40.

Insider Buying and Selling at NerdWallet

In related news, insider Samuel Yount sold 15,945 shares of the stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $16.04, for a total value of $255,757.80. Following the sale, the insider directly owned 358,116 shares of the company’s stock, valued at $5,744,180.64. This represents a 4.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders have sold a total of 44,231 shares of company stock valued at $669,277 over the last quarter. Corporate insiders own 46.54% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its stake in shares of NerdWallet by 1.2% during the third quarter. Vanguard Group Inc. now owns 3,994,180 shares of the company’s stock valued at $42,977,000 after purchasing an additional 48,205 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in NerdWallet by 26.1% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,133,790 shares of the company’s stock worth $12,200,000 after buying an additional 234,691 shares during the period. Dimensional Fund Advisors LP boosted its position in NerdWallet by 1.6% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,114,055 shares of the company’s stock valued at $11,988,000 after acquiring an additional 17,947 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its holdings in shares of NerdWallet by 3.1% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 996,032 shares of the company’s stock valued at $10,926,000 after acquiring an additional 29,829 shares during the period. Finally, Geode Capital Management LLC raised its position in shares of NerdWallet by 9.7% in the 2nd quarter. Geode Capital Management LLC now owns 925,503 shares of the company’s stock worth $10,154,000 after acquiring an additional 81,986 shares in the last quarter. Hedge funds and other institutional investors own 38.81% of the company’s stock.

NerdWallet Trading Down 1.1%

The company has a 50-day moving average price of $14.18 and a 200 day moving average price of $11.99. The stock has a market capitalization of $940.14 million, a P/E ratio of 13.47 and a beta of 1.43.

NerdWallet (NASDAQ:NRDS) last released its quarterly earnings results on Thursday, November 6th. The company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.14. NerdWallet had a net margin of 9.22% and a return on equity of 9.27%. The business had revenue of $215.10 million for the quarter, compared to analyst estimates of $193.31 million. NerdWallet’s quarterly revenue was up 12.4% compared to the same quarter last year. As a group, research analysts expect that NerdWallet, Inc. will post 0.36 earnings per share for the current year.

NerdWallet declared that its Board of Directors has authorized a stock repurchase plan on Tuesday, December 16th that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the company to purchase up to 5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its shares are undervalued.

NerdWallet Company Profile

NerdWallet (NASDAQ: NRDS) is a personal finance company that offers independent guidance and comparison tools to help consumers make informed financial decisions. Through its website and mobile application, NerdWallet provides a wide range of content, including articles, calculators and reviews covering credit cards, mortgages, personal loans, banking products, investing, insurance and taxes. The platform aggregates partner offers to enable side-by-side comparisons, while editorially maintaining objectivity to support users in identifying the products that best suit their individual needs.

Founded in 2009 by Tim Chen and Jacob Gibson, NerdWallet is headquartered in San Francisco and serves consumers primarily in the United States, with additional localized offerings in Canada and the United Kingdom.