September 14, 2023
Brandywine Global Investment Management LLC Reduces Stake in NerdWallet, Inc.
In the first quarter of this year, Brandywine Global Investment Management LLC lowered its stake in NerdWallet, Inc. (NASDAQ:NRDS) by 54.7%. According to the most recent disclosure with the Securities and Exchange Commission, the firm sold 795,319 shares of NerdWallet, resulting in a decreased ownership of 657,685 shares. At the end of the reporting period, Brandywine Global Investment Management LLC owned approximately 0.86% of NerdWallet with a value of $10,641,000.
On August 2nd, NerdWallet (NASDAQ:NRDS) released its quarterly earnings data. The company reported earnings per share of ($0.14) for the quarter, missing the consensus estimate of ($0.03) by ($0.11). Additionally, it generated revenue of $143.30 million for the same period compared to analysts’ expectations of $137.22 million. It is worth noting that although NerdWallet had a negative return on equity of 1.93%, its net margin was 0.10%. Furthermore, there was a notable increase in revenue as it grew by 14.5% compared to the previous year’s corresponding quarter when the firm posted earnings per share of ($0.14).
Equity analysts predict that NerdWallet will report -0.1 EPS for this fiscal year.
Institutional Investors and Analysts Bullish on NerdWallet’s Stock Despite Market Volatility
Institutional investors and hedge funds have been actively buying and selling shares of the stock of NerdWallet, a popular financial advice platform. Spire Wealth Management acquired a new stake in the company during the first quarter, investing $624,000. Tower Research Capital LLC TRC also increased its stake in NerdWallet by 210.1% during the same period and now owns 14,725 shares worth $238,000. Virtu Financial LLC joined in by acquiring a new stake worth $399,000 in the first quarter as well. Counterpoint Mutual Funds and Azora Capital LP also purchased stakes at $96,000 and $10,866,000 respectively. In total, institutional investors own about 36.22% of NerdWallet’s stock.
As per recent data from September 14th, shares of NASDAQ:NRDS opened at $8.35 on that specific Thursday with a market capitalization of approximately $647.43 million. The company operates at a high price-to-earnings (P/E) ratio of 835.00 and has a beta value of 1.51. The stock had experienced a range between $7.62 (a yearly low) and $21.74 (a yearly high), reflecting market volatility within the past year.
In other news concerning NerdWallet’s internal operations, CEO Tim Chao-Ming Chen recently made significant moves by acquiring an impressive number of shares himself on September 11th when he purchased 23,938 stocks for an average cost per share of $8.40, totaling to roughly $201,079.20 in value. Following this acquisition, Chen now holds around 688,523 shares directly under his name which are valued at approximately $5,783,593.20 according to filings with the Securities & Exchange Commission.
Market analysts have also been monitoring NerdWallet closely as they provide insight into the stock’s performance. KeyCorp, for instance, reduced their target price from $22.00 to $20.00 while maintaining an “overweight” rating in a research note issued on August 3rd. Similarly, Oppenheimer reduced their price target from $17.00 to $16.00 and labeled NerdWallet as an “outperform” stock on the same day. Morgan Stanley also joined in by decreasing their price target from $12.00 to $11.00, while still giving the stock an “equal weight” rating on August 4th. However, Truist Financial provided some optimism by increasing their price target from $20.00 to $21.00 and assigning a “buy” rating on August 3rd.
Based on data obtained from Bloomberg, it is clear that NerdWallet currently holds a consensus rating of “Moderate Buy” with an average target price set at $16.67 by various analysts.
Overall, NerdWallet remains an intriguing option for investors and financial enthusiasts alike due to its innovative platform and continuous growth potential within the market. With the presence of renowned institutional investors and favorable ratings from research analysts, it will be interesting to observe how this company performs in terms of stock value and future market influence as we move forward into September 2023.