TechTarget (NASDAQ:TTGT) Stock Price Declines - What Lies Ahead?

On Friday, shares of TechTarget, Inc. (NASDAQ:TTGT) faced a notable decline, dropping by 5.5% during midday trading. The stock hit a low of $25.30 and concluded the day at the same price, with a total of 97,480 shares exchanged. This volume represents a significant decrease of 56% compared to the average session volume of 222,169 shares, as the stock previously closed at $26.76.

Analyst Price Targets Update

In recent weeks, multiple research firms have provided updates on their price targets for TechTarget. For example, Raymond James reduced its price target from $39.00 to $34.00, while also assigning an "outperform" rating to the stock on August 12th. Conversely, Craig Hallum raised their target from $36.00 to $40.00 in a report dated November 13th, maintaining a "buy" rating.

Furthermore, StockNews.com has started coverage on TechTarget, assigning it a "hold" rating. KeyCorp adjusted their target from $38.00 to $37.00 along with an "overweight" rating, and Needham & Company LLC reaffirmed a "buy" rating with a target price of $40.00 on November 13th. Overall, two analysts have rated TechTarget as a hold, while five maintain buy ratings, resulting in a consensus rating of "Moderate Buy" with an average price target of $38.17, as reported by MarketBeat.com.

Evaluating TechTarget's Stock Performance

TechTarget's stock performance can be assessed through its moving averages; the 50-day moving average stands at $28.30, and the 200-day moving average at $28.77. The company's market capitalization is approximately $745.62 million, with a P/E ratio of -63.71 and a price-to-earnings-growth ratio of 14.28. Additionally, the company has a beta of 1.04, indicating moderate volatility.

In its most recent quarterly earnings announcement on November 12th, TechTarget reported earnings per share (EPS) of $0.42, exceeding the analysts' consensus of $0.37 by $0.05. The company's return on equity stood at 5.44%, alongside a negative net margin of 5.34%. Revenue for the quarter was recorded at $58.47 million, slightly above analysts' expectations of $58.14 million, and reflected a 2.4% increase compared to the previous year. For the current year, analysts typically expect TechTarget to report an EPS of around $0.55.

Institutional Investors' Actions

A range of institutional investors have been adjusting their stake in TechTarget recently. BOKF NA has initiated a new position valued at roughly $239,000 in the second quarter, while Cornercap Investment Counsel Inc. invested approximately $245,000 in the third quarter. Intech Investment Management LLC and Quest Partners LLC also made new acquisitions in the same quarter, valued at $257,000 and $272,000, respectively. SG Americas Securities LLC rounded this out by investing about $307,000. Importantly, institutional investors collectively own 93.52% of TechTarget's shares.

About TechTarget, Inc.

TechTarget, Inc. provides marketing and sales services primarily aimed at technology companies operating in a business-to-business environment, both in North America and internationally. Their services help technology vendors engage and influence decision-makers who are actively researching specific IT purchases. TechTarget also offers tailored marketing programs that combine demand generation, brand advertising methodologies, and content creation.

Conclusion

With the recent drop in share price, investors may be weighing their options regarding holding or selling. Analysts provide mixed ratings and price targets, indicating a spectrum of opinions on the stock's potential recovery. Investors should remain attentive to market trends and future earnings reports to make well-informed decisions.

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