Pinterest (NYSE:PINS) Shares Gap Up – What’s Next?

Pinterest, Inc. (NYSE:PINS) shares gapped up before the market opened on Tuesday . The stock had previously closed at $17.48, but opened at $18.33. Pinterest shares last traded at $18.3060, with a volume of 7,878,377 shares trading hands.

Pinterest News Summary

Here are the key news stories impacting Pinterest this week:

• Positive Sentiment: Elliott Investment Management is making a $1 billion strategic equity investment in Pinterest; Pinterest said it will use the proceeds for share repurchases, signaling activist support and a capital-return focus. Read More.
• Positive Sentiment: The stock sharply rallied on the announcement (reports of a ~9–10% pop), reflecting investor enthusiasm for Elliott’s involvement and the buyback-driven reduction in float. Read More.
• Neutral Sentiment: Company stated it will execute a $1.0B accelerated share repurchase (ASR) and flagged near-term repurchases; press coverage varies on total program size (press release cites ~$2B near-term while some outlets report a $3.5B program). Monitor official filings for precise amounts and timing. Read More.
• Neutral Sentiment: Rosenblatt Securities reaffirmed a “neutral” rating with a $20 price target (roughly a low-single-digit upside from current levels), which is in line with the cautious market view despite the Elliott deal. Read More.
• Negative Sentiment: Pomerantz LLP has opened an investor investigation into Pinterest, which could signal potential litigation risk and create headline volatility. Investors should watch for any filings that detail alleged claims. Read More.
• Negative Sentiment: Argus lowered its rating to “Hold,” adding downward analyst pressure despite the Elliott backing—another sign that some analysts remain cautious on the stock’s medium-term outlook. Read More.

Wall Street Analyst Weigh In

PINS has been the subject of several research analyst reports. BMO Capital Markets set a $28.00 price objective on shares of Pinterest and gave the stock an “outperform” rating in a report on Friday, February 13th. Barclays decreased their target price on Pinterest from $36.00 to $25.00 and set an “equal weight” rating for the company in a research report on Friday, February 13th. UBS Group set a $26.00 price target on Pinterest in a research report on Friday, February 13th. Evercore set a $25.00 price target on Pinterest and gave the stock an “in-line” rating in a research note on Friday, February 13th. Finally, Citigroup lowered Pinterest from a “buy” rating to a “neutral” rating and lowered their price objective for the company from $38.00 to $19.00 in a research report on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and nineteen have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Pinterest presently has an average rating of “Hold” and an average price target of $25.87.

Pinterest Price Performance

The stock has a 50 day simple moving average of $22.30 and a 200-day simple moving average of $28.11. The firm has a market cap of $12.88 billion, a PE ratio of 31.75, a PEG ratio of 1.35 and a beta of 0.93.

Pinterest (NYSE:PINS) last issued its quarterly earnings results on Thursday, February 12th. The company reported $0.67 earnings per share for the quarter, missing the consensus estimate of $0.68 by ($0.01). The company had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.33 billion. Pinterest had a net margin of 9.87% and a return on equity of 7.95%. Pinterest’s revenue was up 14.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.56 earnings per share. As a group, equities analysts predict that Pinterest, Inc. will post 0.6 EPS for the current fiscal year.

Insider Transactions at Pinterest

In other news, CFO Donnelly Julia Brau sold 22,821 shares of the stock in a transaction that occurred on Wednesday, December 24th. The shares were sold at an average price of $25.86, for a total transaction of $590,151.06. Following the sale, the chief financial officer owned 540,358 shares in the company, valued at $13,973,657.88. This represents a 4.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Malik Ducard sold 2,293 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $22.06, for a total transaction of $50,583.58. Following the sale, the insider directly owned 695,187 shares of the company’s stock, valued at $15,335,825.22. This trade represents a 0.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 33,407 shares of company stock valued at $855,925. 7.06% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd boosted its position in shares of Pinterest by 2,017.3% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,101 shares of the company’s stock valued at $29,000 after buying an additional 1,049 shares during the last quarter. MidFirst Bank purchased a new position in Pinterest in the 4th quarter worth about $44,000. Pacer Advisors Inc. lifted its stake in Pinterest by 32.9% during the 4th quarter. Pacer Advisors Inc. now owns 2,951,421 shares of the company’s stock valued at $76,412,000 after acquiring an additional 730,358 shares during the period. Kera Capital Partners Inc. boosted its holdings in shares of Pinterest by 121.1% during the 4th quarter. Kera Capital Partners Inc. now owns 17,521 shares of the company’s stock valued at $454,000 after acquiring an additional 9,598 shares during the last quarter. Finally, Compound Planning Inc. boosted its holdings in shares of Pinterest by 11.7% during the 4th quarter. Compound Planning Inc. now owns 14,234 shares of the company’s stock valued at $369,000 after acquiring an additional 1,495 shares during the last quarter. Hedge funds and other institutional investors own 88.81% of the company’s stock.

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.