Fred Alger Management LLC has reduced its investment in Pinterest, Inc. (NYSE: PINS) by 51.7%, according to a recent filing with the Securities and Exchange Commission. The institutional investor now holds 1,302,470 shares of Pinterest after selling 1,394,611 shares during the third quarter, resulting in a total position valued at approximately $41.9 million.
This divestment comes at a time when other institutional investors are also making significant moves regarding their Pinterest holdings. For instance, Norges Bank acquired a new position in Pinterest during the second quarter valued at about $477.85 million. Additionally, Balyasny Asset Management L.P. increased its stake in the company by an astonishing 1,138.8% during the same quarter, now owning 4,601,571 shares worth around $165 million.
Investment activity continues with Man Group plc raising its stake by 185.7% in the third quarter, acquiring an additional 3,239,222 shares, bringing its total to 4,983,427 shares valued at approximately $160.3 million. Victory Capital Management Inc. also reported an 18.5% increase in holdings, now owning over 20.5 million shares with a total value of $685.9 million. Furthermore, Vanguard Group Inc. lifted its position by 5.3%, acquiring an additional 3,044,674 shares, bringing its total to 60.9 million shares, valued at around $1.96 billion.
Currently, approximately 88.81% of Pinterest’s stock is held by hedge funds and other institutional investors.
Insider Transactions and Stock Performance
In related news, two company insiders, Donnelly Julia Brau, the Chief Financial Officer, and Malik Ducard, sold shares on December 24. Brau sold 22,821 shares at an average price of $25.86, totaling $590,151.06. After this transaction, Brau holds 540,358 shares valued at approximately $13.97 million. This sale represents a 4.05% decrease in Brau’s position.
Ducard sold 6,000 shares for a total of $155,160, reducing his holdings to 699,773 shares, valued at around $18.1 million. Over the past three months, insiders have sold a total of 34,457 shares valued at $876,925, with insiders holding 7.11% of the stock.
Shares of Pinterest opened at $18.20 on Monday, reflecting a market capitalization of $12.11 billion. The company’s price-to-earnings (PE) ratio stands at 29.84, with a price-to-earnings-growth (PEG) ratio of 1.21 and a beta of 0.93. Over the past year, Pinterest’s stock has fluctuated, with a low of $13.84 and a high of $39.93. The company’s fifty-day moving average price is noted at $21.34, while the 200-day moving average is $27.25.
Financial Performance and Future Outlook
In its latest quarterly earnings report released on February 12, Pinterest reported earnings of $0.67 per share, slightly missing analysts’ expectations of $0.68. The company’s revenue for the quarter reached $1.32 billion, just shy of the consensus estimate of $1.33 billion. Pinterest recorded a net margin of 9.87% and a return on equity of 7.95%, with revenue increasing by 14.3% year-over-year.
Looking ahead, analysts project that Pinterest will post earnings of $0.60 per share for the current fiscal year. Pinterest operates a visual discovery platform that connects users with ideas for various projects, from home design to cooking. The platform allows users to create and curate “Pins” linked to content, with its primary revenue generated through advertising.
This update highlights the dynamic nature of Pinterest’s investor landscape and the company’s ongoing efforts to enhance its market position.
