Pinterest (NYSE:PINS) Shares Gap Down – Should You Sell?

Pinterest, Inc. (NYSE:PINS) gapped down before the market opened on Wednesday . The stock had previously closed at $25.58, but opened at $23.98. Pinterest shares last traded at $24.52, with a volume of 4,223,854 shares traded.

Trending Headlines about Pinterest

Here are the key news stories impacting Pinterest this week:

• Positive Sentiment: Q2 results exceeded expectations: Pinterest reported revenue of $1.18 billion, up 18% year over year, and adjusted EPS of $0.43 versus analysts’ estimate of $0.36. Monthly active users rose 11% to a record 640 million, while adjusted EBITDA reached $311 million and free cash flow was $270 million. Pinterest Announces Second Quarter 2026 Results, Delivers 18% Revenue Growth and Record Users
• Positive Sentiment: AI and user growth remain strategic positives: Coverage highlighted Pinterest’s efforts to become an AI-powered shopping platform, with record users and continued double-digit user growth supporting its advertising and commerce opportunities. Pinterest’s AI Push Pays Off in Record Users and Revenue
• Positive Sentiment: Several analysts raised price targets: Morgan Stanley lifted its target to $32, Evercore to $29, Mizuho to $32, UBS to $33, Guggenheim to $26, RBC to $25, Baird to $26, and Rosenblatt to $25. Cantor Fitzgerald reaffirmed its overweight rating with a $30 target.
• Neutral Sentiment: Mixed analyst view: Wedbush reaffirmed a neutral rating with a $24 target, while Baird, Evercore, RBC, and Rosenblatt retained neutral-equivalent ratings despite increasing their targets.
• Negative Sentiment: Forward outlook disappointed investors: Pinterest expects third-quarter revenue of approximately $1.2 billion, broadly in line with estimates but signaling slower growth. Rising ad competition and higher costs overshadowed the earnings beat, prompting a sharp after-hours decline and continued pressure on the stock. Pinterest expects slower quarterly revenue growth as ad competition heats up

Analyst Ratings Changes

PINS has been the subject of several recent analyst reports. BMO Capital Markets raised their price objective on shares of Pinterest from $30.00 to $34.00 and gave the company an “outperform” rating in a research note on Wednesday. Royal Bank Of Canada increased their target price on shares of Pinterest from $23.00 to $25.00 and gave the company a “sector perform” rating in a report on Wednesday. Stifel Nicolaus lifted their price target on shares of Pinterest from $25.00 to $27.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Piper Sandler reissued a “neutral” rating and set a $26.00 price target (up from $21.00) on shares of Pinterest in a research note on Tuesday, May 5th. Finally, Rothschild & Co Redburn set a $23.00 price objective on Pinterest and gave the stock a “neutral” rating in a report on Monday, April 27th. Seventeen research analysts have rated the stock with a Buy rating and nineteen have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $28.85.

Pinterest Trading Down 8.9%

The firm has a market capitalization of $13.06 billion, a PE ratio of 48.64, a P/E/G ratio of 1.43 and a beta of 0.90. The company has a quick ratio of 4.23, a current ratio of 4.23 and a debt-to-equity ratio of 0.34. The business’s fifty day moving average price is $21.93 and its 200 day moving average price is $20.50.

Pinterest (NYSE:PINS) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates of $0.36 by $0.07. The business had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.15 billion. Pinterest had a net margin of 7.64% and a return on equity of 8.26%. The company’s revenue was up 18.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.33 earnings per share. As a group, analysts expect that Pinterest, Inc. will post 0.63 EPS for the current fiscal year.

Insider Buying and Selling at Pinterest

In other news, Director Benjamin Silbermann sold 46,875 shares of the firm’s stock in a transaction on Tuesday, July 21st. The stock was sold at an average price of $22.54, for a total transaction of $1,056,562.50. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Wanjiku Juanita Walcott sold 27,337 shares of the firm’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $20.46, for a total value of $559,315.02. Following the sale, the insider owned 724,673 shares in the company, valued at $14,826,809.58. This trade represents a 3.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 370,720 shares of company stock valued at $7,892,627 over the last quarter. 8.09% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Pinterest

Several large investors have recently added to or reduced their stakes in PINS. Revolve Wealth Partners LLC acquired a new position in shares of Pinterest during the 4th quarter valued at about $252,000. Integrated Wealth Concepts LLC lifted its holdings in shares of Pinterest by 5.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 10,943 shares of the company’s stock worth $339,000 after acquiring an additional 607 shares during the period. Empowered Funds LLC boosted its position in shares of Pinterest by 45.6% in the first quarter. Empowered Funds LLC now owns 15,168 shares of the company’s stock worth $470,000 after acquiring an additional 4,748 shares during the last quarter. Sivia Capital Partners LLC boosted its position in shares of Pinterest by 39.5% in the second quarter. Sivia Capital Partners LLC now owns 9,347 shares of the company’s stock worth $335,000 after acquiring an additional 2,649 shares during the last quarter. Finally, Jump Financial LLC acquired a new stake in shares of Pinterest in the second quarter worth approximately $696,000. 88.81% of the stock is currently owned by hedge funds and other institutional investors.

Pinterest Company Profile

Pinterest, Inc operates a visual discovery platform that helps users find inspiration and ideas for projects ranging from home design and fashion to cooking and travel. Users create and curate “Pins” — images or videos linked to content — organized on thematic boards. The service is available through its website and mobile applications and emphasizes personalized recommendations and visual search to surface relevant content based on user interests.

The company’s primary revenue model is advertising, offering promoted content formats that integrate into user feeds and search results.