QuinStreet (NASDAQ:QNST) Shares Decline 11.6% After Earnings Report

QuinStreet, Inc. (NASDAQ:QNST) saw a significant drop in its share price, declining 11.6% on Friday following its announcement of disappointing earnings. The stock price fell to a low of $21.57 before closing at $22.26. During the day's trading, approximately 340,337 shares changed hands, marking a 23% decrease from the average daily volume of 444,577 shares. The previous closing price was $25.17.

For the quarter, QuinStreet reported earnings of ($0.03) per share (EPS), falling short of analysts’ average expectations of $0.18 by a margin of ($0.21). The company recorded a negative net margin of 2.88% and a negative return on equity of 8.79%, raising concerns among investors.

Analyst Ratings and Recommendations

The stock has been the subject of various analysts' reports recently. B. Riley maintained a “buy” rating and increased its target price for QuinStreet shares from $32.00 to $34.00. On November 5th, Stephens raised its price target for QuinStreet from $23.00 to $27.00 and assigned the stock an “overweight” rating. Similarly, Lake Street Capital enhanced their target price from $25.00 to $27.00 while maintaining a “hold” rating. Additionally, Craig Hallum raised its target from $25.00 to $32.00 and recommended a “buy.” Barrington Research also reiterated an “outperform” rating with a target price of $29.00. Currently, one analyst has rated the stock as a sell, one as hold, and four as buys. The consensus rating stands at “Moderate Buy” with an average price target of $29.80, according to MarketBeat.com.

Insider Transactions

In other developments, director Stuart Huizinga sold 2,980 shares of QuinStreet on November 29th, receiving an average price of $23.00 per share, amounting to a total of $68,540. Huizinga's current ownership stands at 171,923 shares with a value of approximately $3,954,229, reflecting a 1.70% decrease in ownership. CEO Douglas Valenti also sold 10,000 shares on February 5th at an average price of $25.02, totaling $250,200. Despite this sale, Valenti retains ownership of 1,836,754 shares valued at around $45,955,585. Insider selling has totaled 50,000 shares worth $1,160,574 in the past three months, with corporate insiders holding 5.00% of the company’s stock.

Institutional Investment Activity

Changes among institutional investors have been notable recently. US Bancorp DE significantly increased its stake in QuinStreet by 880.3% in the third quarter, acquiring 1,392 shares now valued at $27,000. Other institutions like Quantbot Technologies LP and Arcadia Investment Management also purchased new stakes, valued at approximately $29,000 and $38,000, respectively, during this period. KBC Group NV expanded its position by 64.5%, now owning 3,562 shares worth $82,000. PNC Financial Services Group Inc. increased its holdings by 43.9%, currently owning 3,808 shares valued at $88,000. Overall, hedge funds and institutional investors collectively hold 97.83% of QuinStreet's stock.

Company Overview and Performance

QuinStreet operates as an online performance marketing firm that specializes in customer acquisition services for clients in the U.S. and abroad. The firm provides various online marketing services, including qualified clicks, leads, calls, applications, and customers through its own websites or third-party platforms.

As of now, QuinStreet boasts a market capitalization of $1.36 billion, a negative PE ratio of -60.25, and a beta of 1.06. The stock has a fifty-day simple moving average of $22.72 and a 200-day simple moving average of $20.58.

QuinStreet, Earnings, Stocks