Fred Alger Management LLC has significantly reduced its investment in Pinterest, Inc. (NYSE: PINS) by 51.7% during the third quarter of 2023. According to a recent filing with the Securities & Exchange Commission, the institutional investor sold 1,394,611 shares, leaving it with a total of 1,302,470 shares valued at approximately $41.9 million.
The shift in ownership comes as other institutional investors have also adjusted their positions in Pinterest. Notably, Norges Bank acquired a new stake in the company during the second quarter, valued at around $477.85 million. Meanwhile, Balyasny Asset Management L.P. raised its stake by an impressive 1,138.8% during the same period, now owning 4,601,571 shares worth $165.01 million after purchasing an additional 4,230,125 shares.
In addition, Man Group plc increased its holdings in Pinterest by 185.7% in the third quarter, bringing its total shares to 4,983,427, valued at approximately $160.32 million. Victory Capital Management Inc. lifted its stake by 18.5%, now holding 20,550,242 shares worth $685.90 million, while Vanguard Group Inc. increased its position by 5.3%, owning 60,986,423 shares valued at $1.96 billion. Collectively, hedge funds and other institutional investors now own 88.81% of Pinterest’s stock.
Recent Insider Transactions
Recent insider activity has also drawn attention. Chief Financial Officer Julia Brau Donnelly sold 22,821 shares of Pinterest on December 24, 2023, at an average price of $25.86, resulting in a transaction valued at $590,151.06. Following this sale, she retains 540,358 shares valued at approximately $13.97 million, reflecting a 4.05% decrease in her position.
Another insider, Malik Ducard, sold 6,000 shares on the same day for a total of $155,160. Post-sale, Ducard holds 699,773 shares valued at around $18.10 million, marking a 0.85% decrease in his stake. In total, insiders sold 34,457 shares valued at $876,925 over the past three months, while insiders now own 7.11% of Pinterest’s stock.
Pinterest’s Market Performance
As of Monday, Pinterest’s shares opened at $18.20, contributing to 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 ratio of 1.21 and a beta of 0.93. Over the past year, Pinterest’s stock has fluctuated between a low of $13.84 and a high of $39.93. The company’s fifty-day moving average price is $21.34, while the 200-day moving average price is $27.25.
In its most recent quarterly earnings report, released on February 12, 2023, Pinterest reported earnings of $0.67 per share, which fell short of analysts’ expectations of $0.68 by $0.01. The company generated revenue of $1.32 billion for the quarter, slightly below the consensus estimate of $1.33 billion. Despite these results, Pinterest experienced a 14.3% year-on-year increase in revenue, indicating growth in its business.
Analysts predict that Pinterest, Inc. will post $0.60 earnings per share for the current fiscal year. The company operates a visual discovery platform that connects users with inspiration and ideas across various domains, such as home design and cooking, through a unique model that integrates advertising with user-generated content.
Recent changes in institutional ownership and insider trading activities reflect ongoing shifts in investor sentiment regarding Pinterest, as the company continues to navigate its growth trajectory in a competitive market.
