Marqeta (NASDAQ:MQ) Reaches New 1-Year Low Following Weak Earnings

Shares of Marqeta, Inc. (NASDAQ:MQ - Get Free Report) reached a new 52-week low during trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $3.73 and last traded at $3.74, with a volume of 7271272 shares trading hands. The stock had previously closed at $5.95.

The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). Marqeta had a negative net margin of 2.62% and a positive return on equity of 0.51%. The business had revenue of $127.90 million for the quarter, compared to analyst estimates of $128.05 million. During the same quarter in the previous year, the firm posted ($0.07) EPS. The business's revenue was up 20.8% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on MQ. Deutsche Bank Aktiengesellschaft lowered Marqeta from a "buy" rating to a "hold" rating and dropped their target price for the stock from $9.00 to $4.00 in a research report on Tuesday. Mizuho cut their target price on Marqeta from $7.00 to $5.00 and set an "outperform" rating on the stock in a research report on Tuesday. Keefe, Bruyette & Woods decreased their price target on shares of Marqeta from $6.00 to $5.00 and set a "market perform" rating for the company in a research report on Tuesday. Morgan Stanley reduced their price objective on shares of Marqeta from $7.00 to $5.00 and set an "equal weight" rating on the stock in a research note on Tuesday. Finally, William Blair downgraded shares of Marqeta from an "outperform" rating to a "market perform" rating in a research report on Tuesday. Ten equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $6.33.

Institutional Trading of Marqeta

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in Marqeta by 3.6% in the 1st quarter. Vanguard Group Inc. now owns 47,435,778 shares of the company's stock valued at $282,717,000 after acquiring an additional 1,642,621 shares during the last quarter. Visa Foundation bought a new position in shares of Marqeta in the second quarter valued at $68,197,000. Dimensional Fund Advisors LP lifted its position in shares of Marqeta by 5.5% during the 2nd quarter. Dimensional Fund Advisors LP now owns 7,438,277 shares of the company's stock valued at $40,759,000 after acquiring an additional 389,045 shares during the last quarter. Westfield Capital Management Co. LP boosted its stake in shares of Marqeta by 27.6% during the 1st quarter. Westfield Capital Management Co. LP now owns 7,418,851 shares of the company's stock worth $44,216,000 after acquiring an additional 1,604,223 shares in the last quarter. Finally, Capital International Investors raised its position in shares of Marqeta by 203.1% during the first quarter. Capital International Investors now owns 6,878,815 shares of the company's stock worth $40,998,000 after purchasing an additional 4,609,526 shares during the period. 78.64% of the stock is currently owned by institutional investors.

Marqeta Stock Down 42.5 %

The company has a market capitalization of $1.74 billion, a price-to-earnings ratio of -170.91 and a beta of 1.73. The business has a 50-day moving average price of $5.14 and a 200-day moving average price of $5.30.

Marqeta Company Profile

Marqeta, Inc operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later.