Coupang (NYSE:CPNG) Shares Gap Down Following Weak Earnings

Coupang, Inc. (NYSE:CPNG) shares gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $23.65, but opened at $22.09. Coupang shares last traded at $21.55, with a volume of 10,822,636 shares.

The company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.06 by ($0.01). Coupang had a net margin of 5.57% and a return on equity of 15.04%. The firm had revenue of $7.11 billion for the quarter, compared to analysts’ expectations of $6.95 billion. During the same period in the previous year, the company posted $0.05 earnings per share. The business’s quarterly revenue was up 22.6% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several analysts recently commented on CPNG shares. Deutsche Bank Aktiengesellschaft upgraded shares of Coupang from a “hold” rating to a “buy” rating and raised their price target for the company from $18.50 to $21.00 in a research report on Thursday, February 29th. Citigroup raised their price target on shares of Coupang from $26.00 to $28.00 and gave the stock a “buy” rating in a report on Wednesday. Mizuho upped their price objective on Coupang from $20.00 to $23.00 and gave the company a “neutral” rating in a report on Wednesday. Barclays lifted their target price on Coupang from $24.00 to $25.00 and gave the company an “overweight” rating in a research report on Thursday, February 29th. Finally, TheStreet raised shares of Coupang from a “d+” rating to a “c-” rating in a research report on Tuesday, March 5th. Two equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $24.25.

Insider Buying and Selling

In other Coupang news, major shareholder Svf Investments (Uk) Ltd sold 31,614,154 shares of Coupang stock in a transaction dated Tuesday, March 12th. The stock was sold at an average price of $19.01, for a total transaction of $600,985,067.54. Following the completion of the sale, the insider now directly owns 364,542,259 shares of the company’s stock, valued at approximately $6,929,948,343.59. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In related news, insider Pranam Kolari sold 2,048 shares of the firm’s stock in a transaction that occurred on Thursday, May 2nd. The stock was sold at an average price of $22.34, for a total transaction of $45,752.32. Following the transaction, the insider now owns 187,951 shares in the company, valued at approximately $4,198,825.34. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Svf Investments (Uk) Ltd sold 31,614,154 shares of Coupang stock in a transaction on Tuesday, March 12th. The shares were sold at an average price of $19.01, for a total transaction of $600,985,067.54. Following the completion of the transaction, the insider now directly owns 364,542,259 shares in the company, valued at $6,929,948,343.59. The disclosure for this sale can be found here. Insiders sold 33,355,282 shares of company stock worth $633,457,030 over the last 90 days. 14.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Coupang

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Ameriprise Financial Inc. lifted its position in Coupang by 25.3% in the third quarter. Ameriprise Financial Inc. now owns 3,054,223 shares of the company’s stock valued at $51,922,000 after purchasing an additional 616,210 shares during the period. Twenty Acre Capital LP raised its position in Coupang by 23.5% in the fourth quarter. Twenty Acre Capital LP now owns 505,914 shares of the company’s stock worth $8,191,000 after acquiring an additional 96,300 shares in the last quarter. M&T Bank Corp acquired a new stake in Coupang in the third quarter valued at $2,415,000. SG Americas Securities LLC boosted its position in shares of Coupang by 1,509.1% during the 4th quarter. SG Americas Securities LLC now owns 163,159 shares of the company’s stock worth $2,642,000 after purchasing an additional 153,019 shares in the last quarter. Finally, Sapient Capital LLC acquired a new position in shares of Coupang during the 4th quarter worth $2,486,000. 83.72% of the stock is owned by hedge funds and other institutional investors.

Coupang Price Performance

The firm has a market cap of $38.50 billion, a PE ratio of 28.71, a P/E/G ratio of 19.21 and a beta of 1.13. The stock’s fifty day moving average price is $19.91 and its 200-day moving average price is $17.24. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.90 and a current ratio of 1.14.

Coupang Company Profile

Coupang, Inc, together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services.