Shares of Pinterest (PINS, Financial) fell 5.55% in the morning session due to increased market volatility. The Nasdaq declined by 2.5%, and the S&P 500 was down 1.5% after an underwhelming jobs report raised concerns about the health of the economy. The Bureau of Labor Statistics reported that non-farm payrolls for August 2024 showed the U.S. economy added 142,000 jobs. Although this was an improvement from the previous month’s 89,000 job additions, it fell short of the forecasted 161,000. The unemployment rate matched expectations at 4.2%.
As of the latest data, Pinterest Inc (PINS, Financial) is priced at $29.10 per share. The company boasts a market capitalization of $19.97 billion with a price-to-earnings (P/E) ratio of 103.93. Despite the current market turbulence, the company shows strong financial health. Pinterest has a robust financial strength, with an Altman Z-Score of 24.39, indicating a low probability of bankruptcy.
Furthermore, Pinterest's Piotroski F-Score stands at 8, which demonstrates that the company is in a very healthy position. The Beneish M-Score of -3.02 suggests that Pinterest is unlikely to be involved in earnings manipulation. Additionally, the company has a comfortable interest coverage, meaning it has ample cash to meet its debt obligations.
Pinterest has shown a revenue growth rate of 14.2% over the past year and a 23.4% rate over the past five years. However, its earnings growth has been exceptional, with a notable 522.2% increase over the past year. The company's free cash flow per share stands at $1.18, and its current ratio is a solid 9.5.
Regarding valuation, Pinterest's GF Value is estimated at $32.31, which indicates that the stock is modestly undervalued. You can check more details on Pinterest’s GF Value page.
The stock has had some challenges recently, with a year-to-date price change of -20.92% and a 12-week change of -31.45%. Despite these declines, the stock's 52-week performance remains positive at 5.91%. Insider selling has been noted, with six transactions totaling 74,638 shares sold over the past three months, which could be a point of concern for investors.
In summary, while Pinterest (PINS, Financial) has experienced some volatility and insider selling, its strong financial metrics and growth prospects provide a solid foundation for potential recovery and growth in the future.
