MarketWise (NASDAQ:MKTW) Announces Earnings Results, Misses Estimates By $0.89 EPS

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

MarketWise Stock Performance

Shares of MKTW stock traded down $1.09 during trading hours on Friday, hitting $20.25. 38,009 shares of the company were exchanged, compared to its average volume of 10,737. The company has a 50 day simple moving average of $18.66 and a two-hundred day simple moving average of $17.17. The firm has a market cap of $316.51 million, a P/E ratio of 23.01 and a beta of 0.20. MarketWise has a fifty-two week low of $13.49 and a fifty-two week high of $22.83.

MarketWise Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, August 19th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $0.80 annualized dividend and a dividend 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 stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $19.14, for a total transaction of $76,043.22. Following the transaction, 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 20,100 shares of MarketWise stock in a transaction on Wednesday, May 20th. The stock was bought at an average price of $17.21 per share, with a total value of $345,921.00. Following the completion of the acquisition, the director directly owned 355,490 shares of the company’s stock, valued at approximately $6,117,982.90. This trade represents a 5.99% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 63,734 shares of company stock worth $1,135,984 in the last quarter. 29.95% of the stock is owned by corporate insiders.

Institutional Trading of MarketWise

Several large investors have recently made changes to their positions in MKTW. Russell Investments Group Ltd. acquired a new position in MarketWise during the 2nd quarter worth approximately $28,000. Wells Fargo & Company MN grew its stake in MarketWise by 52.5% in the fourth quarter. Wells Fargo & Company MN now owns 2,199 shares of the newsletter publisher’s stock valued at $33,000 after acquiring an additional 757 shares during the period. Raymond James Financial Inc. acquired a new stake in MarketWise in the second quarter valued at approximately $226,000. Susquehanna International Group LLP bought a new stake in shares of MarketWise during the third quarter valued at approximately $191,000. Finally, Renaissance Technologies LLC increased its holdings in shares of MarketWise by 4.7% during the fourth quarter. Renaissance Technologies LLC now owns 19,899 shares of the newsletter publisher’s stock valued at $299,000 after acquiring an additional 900 shares in the last quarter. 23.04% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have weighed in on MKTW shares. Wall Street Zen downgraded MarketWise from a “buy” rating to a “hold” rating in a report on Sunday, May 10th. Weiss Ratings raised MarketWise from a “sell (d)” rating to a “sell (d+)” rating in a research note on Tuesday, June 16th. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price 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.