QuinStreet (NASDAQ:QNST) Stock Jumps 7.9% Following Better-Than-Expected Earnings

QuinStreet, Inc. (NASDAQ:QNST) shares shot up 7.9% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $21.45 and last traded at $20.78. 1,067,395 shares traded hands during mid-day trading, an increase of 24% from the average daily volume of 860,474 shares. The stock had previously closed at $19.26.

The technology company reported $0.50 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.11. The company had revenue of $416.65 million during the quarter, compared to analysts’ expectations of $373.88 million. QuinStreet had a return on equity of 12.73% and a net margin of 6.28%.

Analyst Ratings Changes

Several brokerages recently issued reports on QNST. Northland Securities set a $23.00 price objective on shares of QuinStreet in a report on Thursday, September 17th. B. Riley Financial reiterated a “buy” rating on shares of QuinStreet in a research report on Friday, August 7th. Weiss Ratings raised shares of QuinStreet from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, October 16th. Wall Street Zen cut shares of QuinStreet from a “strong-buy” rating to a “buy” rating in a research note on Saturday, October 31st. Finally, Lake Street Capital raised shares of QuinStreet from a “hold” rating to a “buy” rating and set a $21.00 target price on the stock in a research report on Friday, August 7th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $23.50.

Insider Transactions at QuinStreet

In other news, CEO Douglas Valenti sold 751,631 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $20.50, for a total value of $15,408,435.50. Following the completion of the sale, the chief executive officer directly owned 996,278 shares of the company’s stock, valued at approximately $20,423,699. This represents a 43.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Gregory Wong sold 11,704 shares of the business’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $20.44, for a total value of $239,229.76. Following the transaction, the chief financial officer owned 481,786 shares in the company, valued at $9,847,705.84. This represents a 2.37% decrease in their ownership of the stock. 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 829,631 shares of company stock valued at $16,999,952 in the last three months. Corporate insiders own 3.50% of the company’s stock.

Institutional Investors Weigh In On QuinStreet

Several large investors have recently made changes to their positions in QNST. Illinois Municipal Retirement Fund increased its position in shares of QuinStreet by 6.4% during the third quarter. Illinois Municipal Retirement Fund now owns 32,240 shares of the technology company’s stock worth $484,000 after acquiring an additional 1,952 shares in the last quarter. Ethic Inc. bought a new stake in shares of QuinStreet during the 3rd quarter worth approximately $217,000. Chicago Partners Investment Group LLC bought a new stake in shares of QuinStreet during the 3rd quarter valued at approximately $169,000. Hollow Brook Wealth Management LLC acquired a new stake in QuinStreet during the 3rd quarter worth approximately $307,000. Finally, Summit Global Investments raised its holdings in QuinStreet by 4.3% during the 3rd quarter. Summit Global Investments now owns 61,811 shares of the technology company’s stock worth $928,000 after purchasing an additional 2,546 shares during the last quarter. Institutional investors own 97.83% of the company’s stock.

QuinStreet Stock Up 7.9%

The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.22. The stock’s 50-day moving average is $16.84 and its 200-day moving average is $14.55. The company has a market cap of $1.19 billion, a price-to-earnings ratio of 14.73 and a beta of 0.84.

About QuinStreet

QuinStreet, Inc is a performance marketing and online marketplace company that connects consumers with brands and service providers. The company uses digital media, data, and technology to help businesses acquire customers and generate leads through channels such as search, social media, display advertising, and other online marketing platforms.

QuinStreet operates vertical marketplaces in areas including insurance, financial services, home services, and business services. Its platforms help consumers research products and services, compare available options, and connect with providers, while giving advertisers tools to reach consumers who are actively seeking information or purchasing opportunities.

Founded in 1999, QuinStreet is headquartered in Foster City, California, and primarily serves the U.S.