Coupang (NYSE:CPNG) Share Price Breaks Above 50 Day Moving Average on Disappointing Earnings

Coupang, Inc. (NYSE:CPNG)’s share price passed above its fifty day moving average during trading on Tuesday following a better than expected earnings announcement. The stock has a fifty day moving average of $14.73 and traded as high as $15.38. Coupang shares last traded at $15.2830, with a volume of 26,616,189 shares trading hands.

The company reported ($0.18) EPS for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.09). The business had revenue of $9.96 billion for the quarter, compared to analyst estimates of $9.76 billion. Coupang had a negative return on equity of 8.77% and a negative net margin of 2.16%. Coupang’s revenue was up 7.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.05 EPS.

Key Headlines Impacting Coupang

Here are the key news stories impacting Coupang this week:

• Positive Sentiment: Q3 revenue was $9.96 billion, above FactSet’s $9.76 billion estimate. One Zacks report also said Coupang’s adjusted loss of $0.18 per share was narrower than its cited $0.23 consensus loss. Revenue report Zacks earnings report
• Neutral Sentiment: Coupang said it is investing in growth initiatives. Those investments may support longer-term expansion, but the reports provide no detail here on their expected returns or timing. Article on growth investments
• Negative Sentiment: Coupang posted an adjusted loss of $0.18 per share, compared with a profit of $0.05 a year earlier. Analyst comparisons differ: MarketBeat cited a $0.09 expected loss, making the result a miss, while Zacks cited a $0.23 expected loss, making it a beat. A separate report characterized a $248 million fire-related impact as wiping out the quarter, adding a potential drag on profitability. Loss report Fire impact article

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on CPNG shares. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Coupang in a research note on Monday. Barclays reiterated an “overweight” rating and issued a $29.00 price objective on shares of Coupang in a report on Tuesday, July 7th. Bank of America cut their target price on Coupang from $27.00 to $24.00 and set a “buy” rating on the stock in a research note on Wednesday, August 5th. Mizuho set a $22.00 target price on Coupang in a research note on Wednesday, August 5th. Finally, Deutsche Bank Aktiengesellschaft upgraded Coupang from a “hold” rating to a “buy” rating and reduced their target price for the stock from $23.00 to $21.50 in a report on Wednesday, August 5th. Five analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $24.06.

Insider Activity at Coupang

In other Coupang news, insider Harold Rogers sold 192,110 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $16.18, for a total value of $3,108,339.80. Following the sale, the insider directly owned 740,931 shares in the company, valued at approximately $11,988,263.58. This trade represents a 20.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CAO Jonathan D. Lee sold 5,519 shares of Coupang stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $13.65, for a total transaction of $75,334.35. Following the transaction, the chief accounting officer directly owned 176,396 shares in the company, valued at approximately $2,407,805.40. This represents a 3.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 203,148 shares of company stock valued at $3,272,530 in the last ninety days. Insiders own 12.83% of the company’s stock.

Institutional Trading of Coupang

A number of large investors have recently made changes to their positions in CPNG. Main Street Group LTD bought a new stake in shares of Coupang in the first quarter valued at about $40,000. Root Financial Partners LLC boosted its position in shares of Coupang by 68.5% during the first quarter. Root Financial Partners LLC now owns 2,265 shares of the company’s stock worth $43,000 after buying an additional 921 shares during the period. Pinnacle Wealth Planning Services Inc. boosted its position in shares of Coupang by 652.6% during the third quarter. Pinnacle Wealth Planning Services Inc. now owns 2,702 shares of the company’s stock worth $37,000 after buying an additional 2,343 shares during the period. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Coupang during the third quarter worth about $40,000. Finally, Trellis Wealth Advisors LLC bought a new position in shares of Coupang during the third quarter worth about $44,000. Institutional investors own 83.72% of the company’s stock.

Coupang Stock Performance

The stock has a fifty day moving average of $14.73 and a 200-day moving average of $17.22. The firm has a market capitalization of $27.47 billion, a P/E ratio of -35.54 and a beta of 1.15. The company has a quick ratio of 0.68, a current ratio of 0.87 and a debt-to-equity ratio of 0.21.

Coupang Company Profile

Coupang, Inc is an e-commerce and technology company that operates a large digital retail platform. The company offers a broad selection of merchandise, including electronics, household goods, apparel, beauty products and groceries. Its services include Rocket Delivery, a fast-delivery program; Rocket Fresh, which focuses on fresh food and groceries; and Wow, a membership program that provides delivery and other customer benefits.

Coupang also operates Coupang Eats, a restaurant-ordering and delivery service, as well as Coupang Play, a digital video streaming platform.