Pinterest (NYSE:PINS) Shares Gap Down – Here’s What Happened

Pinterest, Inc. (NYSE:PINS) gapped down prior to trading on Wednesday . The stock had previously closed at $25.58, but opened at $23.98. Pinterest shares last traded at $24.52, with a volume of 4,223,854 shares.

Key Pinterest News

Here are the key news stories impacting Pinterest this week:

• Positive Sentiment: Several analysts raised their expectations for Pinterest. Evercore lifted its price target to $29, RBC raised its target to $25, and Rosenblatt, Guggenheim, Morgan Stanley and Robert W. Baird indicated expectations for further share-price appreciation. Evercore price target
• Positive Sentiment: UBS rated Pinterest a Buy, while Cantor Fitzgerald assigned an Overweight rating, adding to the bullish analyst support. UBS Buy rating
• Positive Sentiment: Pinterest’s Q2 earnings exceeded estimates, supported by AI-powered advertising, improved monetization and record user growth. Revenue also rose 18.2% year over year, reinforcing the company’s growth story. Pinterest Q2 earnings
• Neutral Sentiment: Wedbush reiterated its Neutral/Hold rating with a $24 price target, suggesting limited near-term upside despite the positive analyst revisions elsewhere. Wedbush Hold rating
• Negative Sentiment: The main pressure on the stock is Pinterest’s Q3 forecast, which failed to impress investors. Reports also point to choppy North American user trends and margin pressure from monetization investments, tempering the otherwise strong Q2 performance. Pinterest Q3 forecast

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. TD Cowen reissued a “buy” rating on shares of Pinterest in a report on Monday, June 22nd. JPMorgan Chase & Co. raised their target price on Pinterest from $20.00 to $25.00 and gave the stock a “neutral” rating in a research note on Tuesday, May 5th. Morgan Stanley lifted their price target on Pinterest from $30.00 to $32.00 and gave the stock an “overweight” rating in a research report on Wednesday. Piper Sandler reiterated a “neutral” rating and set a $26.00 price target (up from $21.00) on shares of Pinterest in a research note on Tuesday, May 5th. Finally, Wedbush reissued a “neutral” rating and issued a $24.00 price objective on shares of Pinterest in a report on Wednesday. Seventeen equities research analysts have rated the stock with a Buy rating and nineteen have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $28.88.

Pinterest Stock Up 0.8%

The company has a debt-to-equity ratio of 0.34, a quick ratio of 4.23 and a current ratio of 3.81. The firm has a market cap of $13.18 billion, a price-to-earnings ratio of 68.88, a PEG ratio of 1.38 and a beta of 0.90. The business’s 50 day moving average price is $22.04 and its 200 day moving average price is $20.46.

Pinterest (NYSE:PINS) last posted its earnings results on Tuesday, August 4th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.07. Pinterest had a net margin of 5.46% and a return on equity of 7.49%. The firm had revenue of $1.18 billion during the quarter, compared to analysts’ expectations of $1.15 billion. During the same period in the previous year, the business posted $0.33 EPS. The business’s revenue was up 18.2% compared to the same quarter last year. On average, equities analysts forecast that Pinterest, Inc. will post 0.63 EPS for the current year.

Insider Buying and Selling

In other Pinterest news, insider Wanjiku Juanita Walcott sold 27,337 shares of the firm’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $20.46, for a total value of $559,315.02. Following the sale, the insider directly owned 724,673 shares of the company’s stock, valued at approximately $14,826,809.58. This trade represents a 3.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Benjamin Silbermann sold 46,875 shares of the business’s stock in a transaction that occurred on Tuesday, July 21st. The shares were sold at an average price of $22.54, for a total value of $1,056,562.50. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 370,720 shares of company stock worth $7,892,627 in the last quarter. 8.09% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Pinterest

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Revolve Wealth Partners LLC purchased a new position in Pinterest in the 4th quarter valued at about $252,000. Integrated Wealth Concepts LLC lifted its holdings in Pinterest by 5.9% in the first quarter. Integrated Wealth Concepts LLC now owns 10,943 shares of the company’s stock valued at $339,000 after acquiring an additional 607 shares during the last quarter. Empowered Funds LLC lifted its holdings in Pinterest by 45.6% in the first quarter. Empowered Funds LLC now owns 15,168 shares of the company’s stock valued at $470,000 after acquiring an additional 4,748 shares during the last quarter. Sivia Capital Partners LLC grew its position in Pinterest by 39.5% in the second quarter. Sivia Capital Partners LLC now owns 9,347 shares of the company’s stock worth $335,000 after acquiring an additional 2,649 shares during the period. Finally, Jump Financial LLC purchased a new position in Pinterest in the second quarter worth approximately $696,000. 88.81% of the stock is owned by hedge funds and other institutional investors.

About Pinterest

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.