NerdWallet (NASDAQ:NRDS) Shares Climb 11.2% – What’s Next?

Shares of NerdWallet, Inc. (NASDAQ:NRDS) were up 11.2% on Wednesday. The company traded as high as $12.11 and last traded at $12.0530. 151,270 shares were traded during mid-day trading, a decline of 82% from the average session volume of 838,175 shares. The stock had previously closed at $10.84.

Key NerdWallet News

Here are the key news stories impacting NerdWallet this week:

• Positive Sentiment: Truist lowered its price target to $12 from $15 but maintained a Buy rating, implying substantial upside from the cited share price. The lower target tempers the endorsement. Analyst recommendation
• Negative Sentiment: NerdWallet forecast fourth-quarter revenue of $191 million to $203 million, far below the $241 million consensus estimate. This weaker outlook is a major near-term concern for investors. NerdWallet third-quarter results
• Negative Sentiment: Third-quarter adjusted earnings were $0.23 per share, below the $0.34 consensus, while revenue of $239.6 million also missed estimates of about $251.9 million. Earnings were down from $0.34 a year earlier, despite revenue growth of 11.4%. Q3 earnings and revenue estimates
• Negative Sentiment: Consumer revenue grew 12% in the quarter, but costs rose nearly 22%, raising concerns that expense growth is outpacing business growth. Analysis of NerdWallet’s results
• Negative Sentiment: William Blair downgraded NerdWallet from Outperform to Market Perform, signaling a less favorable analyst view. William Blair downgrade

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. William Blair downgraded NerdWallet from an “outperform” rating to a “market perform” rating in a report on Friday. Weiss Ratings upgraded shares of NerdWallet from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, October 15th. Finally, Truist Financial cut their price target on shares of NerdWallet from $15.00 to $12.00 and set a “buy” rating on the stock in a report on Friday. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $12.33.

NerdWallet Stock Down 30.1%

The company’s fifty day simple moving average is $9.74 and its 200 day simple moving average is $9.83. The firm has a market capitalization of $511.06 million, a PE ratio of 8.98 and a beta of 1.20.

NerdWallet (NASDAQ:NRDS) last posted its earnings results on Thursday, November 5th. The company reported $0.23 earnings per share for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.11). The firm had revenue of $239.60 million for the quarter, compared to analysts’ expectations of $251.86 million. NerdWallet had a return on equity of 18.07% and a net margin of 7.56%. The firm’s revenue was up 11.4% on a year-over-year basis. During the same quarter last year, the company posted $0.34 EPS. Equities research analysts forecast that NerdWallet, Inc. will post 0.88 EPS for the current year.

Institutional Trading of NerdWallet

A number of hedge funds and other institutional investors have recently modified their holdings of NRDS. Russell Investments Group Ltd. boosted its holdings in NerdWallet by 97.0% in the third quarter. Russell Investments Group Ltd. now owns 176,576 shares of the company’s stock worth $1,550,000 after acquiring an additional 86,927 shares in the last quarter. Ritholtz Wealth Management purchased a new stake in shares of NerdWallet in the third quarter worth $378,000. Alps Advisors Inc. purchased a new stake in shares of NerdWallet in the third quarter worth $536,000. State of Wyoming grew its stake in shares of NerdWallet by 10.3% in the third quarter. State of Wyoming now owns 29,785 shares of the company’s stock worth $262,000 after acquiring an additional 2,778 shares during the last quarter. Finally, Inspire Investing LLC bought a new position in shares of NerdWallet during the third quarter valued at $638,000. 38.81% of the stock is owned by hedge funds and other institutional investors.

About NerdWallet

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.