IAC (NASDAQ: IAC) has been downgraded from a “hold” to a “strong sell” rating by Zacks Research, according to a note issued to investors on Tuesday, February 3, 2024. This shift highlights growing concerns among analysts regarding the company’s performance and outlook.
In addition to Zacks’ assessment, several other financial institutions have revised their ratings on IAC. Weiss Ratings reiterated a “sell (d-)” rating on January 22, while Barclays lowered its target price from $52.00 to $48.00, maintaining an “overweight” rating in a report released on November 5, 2023. Moreover, Wall Street Zen also downgraded IAC from a “hold” to a “sell” rating on February 7, 2024.
On the other hand, Benchmark adjusted its price target from $60.00 to $57.00, retaining a “buy” rating as of the same November date, while KeyCorp decreased its price objective from $45.00 to $41.00, also maintaining an “overweight” rating on November 3, 2023. Currently, ten investment analysts categorize IAC as a “buy,” three as a “hold,” and two as a “sell.” According to MarketBeat, the consensus rating stands at “Moderate Buy,” with an average target price of $46.83.
Recent Earnings Report Reveals Losses
IAC’s latest earnings report, released on February 3, 2024, indicated a significant financial downturn. The company posted earnings of ($0.99) per share (EPS), falling short of analysts’ consensus estimate of $0.67 by a staggering ($1.66). Revenue for the quarter was $645.98 million, slightly surpassing the expected $641.01 million. Nonetheless, the company experienced a negative net margin of 4.35% and a negative return on equity of 2.43%. This represented a notable decline, with quarterly revenue down 34.7% compared to the same period last year. Last year, IAC reported a loss per share of ($2.39). Financial analysts anticipate that IAC will post an EPS of 0.43 for the current fiscal year.
Institutional Investment Movements
Recent trading activity indicates that several hedge funds and institutional investors are actively adjusting their positions in IAC. Elevation Wealth Partners LLC acquired a new stake valued at $25,000 during the fourth quarter. Additionally, Hantz Financial Services Inc. increased its holdings by 173.4%, now owning 782 shares worth approximately $31,000 after purchasing an additional 496 shares in the last quarter. Other investors, such as Advisory Services Network LLC and JFS Wealth Advisors LLC, also added new positions in IAC, valued at about $38,000 and $39,000 respectively. Institutional investors currently hold 88.90% of IAC’s stock.
Based in New York City, IAC operates as a publicly traded holding company that invests in and builds consumer-focused internet businesses. The firm encompasses a diverse range of digital media brands, online marketplaces, and subscription services, providing content across various sectors, including lifestyle and finance. IAC’s Dotdash Meredith division is particularly notable for its development of original content and data-driven journalism across multiple specialized sites.
As IAC navigates these challenging market conditions, the adjustments in analyst ratings and investor sentiment reflect the broader uncertainties in the technology and digital media landscape.
