Pinterest Inc. (NYSE: PINS) stock fell -3.22% on Tuesday to $25.83 against a previous-day closing price of $26.69. With 11.46 million shares changed hands, the volume of the stock remained lighter than its average volume of 12.42 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $27.65 whereas the lowest price it dropped to was $25.62. The 52-week range on PINS shows that it touched its highest point at $31.16 and its lowest point at $16.14 during that stretch. It currently has a 1-year price target of $27.92. Beta for the stock currently stands at 0.98.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PINS was down-trending over the past week, with a drop of -2.97%, but this was up by 2.74% over a month. Three-month performance surged to 20.14% while six-month performance rose 43.02%. The stock lost -12.29% in the past year, while it has gained 6.38% so far this year. A look at the trailing 12-month EPS for PINS yields 0.14 with Next year EPS estimates of 0.76. For the next quarter, that number is 0.27. This implies an EPS growth rate of 338.50% for this year and 24.59% for next year. EPS is expected to decline by -2.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 28.40%.
Float and Shares Shorts:
At present, 669.17 million PINS shares are outstanding with a float of 582.72 million shares on hand for trading. On Oct 13, 2022, short shares totaled 26.39 million, which was 3.92% higher than short shares on Sep 14, 2022. In addition to Mr. Benjamin Silbermann as the firm’s Co-Founder & Exec. Chairman, Mr. Evan Sharp serves as its Co-Founder, Advisor & Director.
Through their ownership of 86.45% of PINS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.92% of PINS, in contrast to 43.83% held by mutual funds. Shares owned by individuals account for 3.34%. As the largest shareholder in PINS with 8.87% of the stake, The Vanguard Group, Inc. holds 51,726,646 shares worth 51,726,646. A second-largest stockholder of PINS, Flossbach von Storch AG, holds 28,868,654 shares, controlling over 4.95% of the firm’s shares. Harris Associates LP is the third largest shareholder in PINS, holding 28,462,345 shares or 4.88% stake. With a 3.10% stake in PINS, the Flossbach von Storch – Multiple O is the largest stakeholder. A total of 18,091,467 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.06% of PINS stock, is the second-largest Mutual Fund holder. It holds 17,849,136 shares valued at 433.38 million. Oakmark Fund holds 2.36% of the stake in PINS, owning 13,750,000 shares worth 333.85 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PINS since 33 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 20 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PINS analysts setting a high price target of $39.00 and a low target of $19.00, the average target price over the next 12 months is $27.97. Based on these targets, PINS could surge 50.99% to reach the target high and fall by -26.44% to reach the target low. Reaching the average price target will result in a growth of 8.28% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PINS will report FY 2022 earnings on 02/01/2024. Analysts have provided yearly estimates in a range of $0.80 being high and $0.51 being low. For PINS, this leads to a yearly average estimate of $0.61. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Pinterest Inc. surprised analysts by $0.05 when it reported $0.11 EPS against a consensus estimate of $0.06. The surprise factor in the prior quarter was -$0.07. Based on analyst estimates, the high estimate for the next quarter is $0.35 and the low estimate is $0.14. The average estimate for the next quarter is thus $0.27.
Summary of Insider Activity:
Insiders traded PINS stock several times over the past three months with 30 Buys and 47 Sells. In these transactions, 5,019,365 shares were bought while 4,952,575 shares were sold. The number of buy transactions has increased to 58 while that of sell transactions has risen to 90 over the past year. The total number of shares bought during that period was 9,167,731 while 7,764,916 shares were sold.