MarketWise (NASDAQ:MKTW) Posts Earnings Results, Misses Expectations By $0.89 EPS

MarketWise (NASDAQ:MKTW) posted its quarterly earnings results on Thursday. The newsletter publisher reported ($0.24) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.89), FiscalAI reports. The company had revenue of $75.81 million during the quarter, compared to analysts’ expectations of $78.37 million. MarketWise had a net margin of 0.70% and a negative return on equity of 1.00%.

MarketWise Stock Performance

Shares of NASDAQ:MKTW traded down $1.09 during trading hours on Friday, reaching $20.25. The stock had a trading volume of 38,009 shares, compared to its average volume of 10,737. MarketWise has a 1 year low of $13.49 and a 1 year high of $22.83. The firm’s 50 day moving average is $18.66 and its 200-day moving average is $17.17. The stock has a market capitalization of $316.51 million, a price-to-earnings ratio of 23.01 and a beta of 0.20.

MarketWise Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, August 19th will be issued a $0.20 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $0.80 annualized dividend and a yield of 4.0%. MarketWise’s dividend payout ratio (DPR) is 60.61%.

Insiders Place Their Bets

In related news, insider Erik Mickels sold 3,973 shares of the company’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $19.14, for a total value of $76,043.22. Following the completion of the sale, the insider directly owned 75,091 shares of the company’s stock, valued at $1,437,241.74. This represents a 5.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Frank Porter Stansberry purchased 10,000 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The stock was bought at an average price of $17.88 per share, for a total transaction of $178,800.00. Following the transaction, the director directly owned 365,490 shares in the company, valued at $6,534,961.20. This trade represents a 2.81% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders acquired 63,734 shares of company stock worth $1,135,984. 29.95% of the stock is owned by insiders.

Institutional Investors Weigh In On MarketWise

Several institutional investors and hedge funds have recently made changes to their positions in MKTW. Russell Investments Group Ltd. lifted its position in shares of MarketWise by 60.7% in the fourth quarter. Russell Investments Group Ltd. now owns 2,047 shares of the newsletter publisher’s stock valued at $31,000 after acquiring an additional 773 shares in the last quarter. Barclays PLC increased its position in MarketWise by 7.0% during the 4th quarter. Barclays PLC now owns 152,631 shares of the newsletter publisher’s stock worth $2,293,000 after purchasing an additional 9,961 shares in the last quarter. State Street Corp increased its position in MarketWise by 5.2% during the 4th quarter. State Street Corp now owns 28,737 shares of the newsletter publisher’s stock worth $432,000 after purchasing an additional 1,414 shares in the last quarter. Wells Fargo & Company MN raised its stake in MarketWise by 52.5% in the 4th quarter. Wells Fargo & Company MN now owns 2,199 shares of the newsletter publisher’s stock valued at $33,000 after purchasing an additional 757 shares during the last quarter. Finally, Renaissance Technologies LLC raised its stake in MarketWise by 4.7% in the 4th quarter. Renaissance Technologies LLC now owns 19,899 shares of the newsletter publisher’s stock valued at $299,000 after purchasing an additional 900 shares during the last quarter. 23.04% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts recently issued reports on MKTW shares. Weiss Ratings raised MarketWise from a “sell (d)” rating to a “sell (d+)” rating in a research report on Tuesday, June 16th. Wall Street Zen cut shares of MarketWise from a “buy” rating to a “hold” rating in a research report on Sunday, May 10th. One research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $20.00.

MarketWise Company Profile

MarketWise, Inc operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters.