eToro Group (NASDAQ:ETOR) Issues Earnings Results

eToro Group (NASDAQ:ETOR) issued its quarterly earnings data on Tuesday. The company reported $0.68 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.07, Briefing.com reports. The company had revenue of $1.59 billion during the quarter. eToro Group had a return on equity of 19.79% and a net margin of 1.90%.eToro Group’s quarterly revenue was down 23.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.56 EPS.

Here are the key takeaways from eToro Group’s conference call:

• Strong second-quarter performance: Net contribution rose 9% year over year to $229 million and adjusted EBITDA increased 9% to $78 million, while funded accounts grew 18% to 4.28 million and assets under administration reached more than $19 billion.
• TradeZero acquisition expands U.S. capabilities: eToro agreed to acquire TradeZero for up to approximately $230 million in cash and stock, adding U.S. and Canadian scale, futures, shorting, margin and options-related capabilities. Management expects the transaction to be adjusted-EPS accretive in the first full year after completion.
• Product expansion is broadening engagement: eToro launched its AI-powered app, the Edge platform for active traders, Agent Portfolios and sub-accounts, while savings AUM grew 15-fold year over year and eToro Money card issuance increased more than 30% sequentially.
• Crypto activity weakened: Crypto net contribution fell to $11 million as users shifted toward equities, and the company recorded a $2 million negative valuation impact on corporate crypto holdings. July AUA declined 5% year over year to $18.5 billion, primarily due to lower crypto prices.
• Near-term spending and activity outlook is mixed: Third-quarter operating expenses are expected to rise modestly as eToro continues investing in marketing and R&D; July trading activity was seasonally flat, although management said activity improved during the first 10 days of August.

eToro Group Stock Performance

eToro Group stock traded down $3.03 during trading hours on Tuesday, reaching $30.97. 946,638 shares of the stock were exchanged, compared to its average volume of 1,139,901. eToro Group has a 52-week low of $24.74 and a 52-week high of $56.48. The stock has a market cap of $2.57 billion, a P/E ratio of 12.96, a P/E/G ratio of 0.76 and a beta of 1.68. The company has a debt-to-equity ratio of 0.02, a quick ratio of 3.92 and a current ratio of 3.92. The firm’s 50 day moving average is $38.21 and its 200 day moving average is $34.96.

Insider Activity

In related news, CEO Hedva Ber sold 55,160 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $41.90, for a total value of $2,311,204.00. Following the completion of the sale, the chief executive officer owned 20,660 shares in the company, valued at $865,654. This trade represents a 72.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Shalev Eddy sold 100,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $41.26, for a total value of $4,126,000.00. Following the completion of the sale, the director directly owned 296,779 shares of the company’s stock, valued at $12,245,101.54. This represents a 25.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Hedge Funds Weigh In On eToro Group

Hedge funds have recently added to or reduced their stakes in the business. Russell Investments Group Ltd. purchased a new position in eToro Group during the second quarter worth $669,000. Invesco Ltd. purchased a new stake in shares of eToro Group in the second quarter valued at $15,392,000. Nebula Research & Development LLC acquired a new stake in shares of eToro Group during the second quarter valued at $272,000. Squarepoint Ops LLC acquired a new stake in shares of eToro Group during the second quarter valued at $1,270,000. Finally, Raymond James Financial Inc. purchased a new stake in eToro Group during the 2nd quarter worth about $1,333,000.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on ETOR. Susquehanna raised their target price on shares of eToro Group from $55.00 to $57.00 and gave the stock a “positive” rating in a research report on Wednesday, May 13th. TD Cowen increased their price target on shares of eToro Group from $44.00 to $52.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Citizens Jmp raised their price objective on shares of eToro Group from $85.00 to $90.00 and gave the stock a “market outperform” rating in a research report on Wednesday, May 13th. Needham & Company LLC lifted their price objective on shares of eToro Group from $58.00 to $66.00 and gave the company a “buy” rating in a research note on Wednesday, May 13th. Finally, Wall Street Zen upgraded shares of eToro Group from a “hold” rating to a “buy” rating in a research note on Sunday, July 12th. Ten investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat, eToro Group presently has a consensus rating of “Moderate Buy” and a consensus target price of $55.80.

About eToro Group

eToro Group Ltd. (NASDAQ: ETOR) is a global multi-asset brokerage company known for its social trading platform. The company enables individual and institutional investors to trade and invest in a broad range of financial instruments, including stocks, exchange-traded funds (ETFs), commodities, indices, forex, and cryptocurrencies. eToro’s platform integrates a user-friendly interface with advanced trading tools, catering to both novice and experienced market participants.

A distinguishing feature of eToro’s offering is its CopyTrader™ functionality, which allows users to replicate the trades of selected investors on the platform.