Shares of IAC Inc (IAC) tumbled 5.14% in after-hours trading on Wednesday, following a series of price target cuts by multiple analysts. The downward pressure on the stock came in the wake of the company's quarterly earnings report and underwhelming results from its subsidiary, Angi Inc.
Several prominent financial institutions revised their outlook on IAC. UBS lowered its price target to $39 from $41, while maintaining a neutral rating. Oppenheimer cut its target more dramatically to $45 from $55, though it kept an outperform rating. Truist Securities and Benchmark also reduced their price targets to $52 from $57 and to $57 from $60, respectively. These adjustments suggest a tempered enthusiasm for IAC's near-term prospects among Wall Street analysts.
The after-hours sell-off may also be partly attributed to the performance of IAC's subsidiary, Angi Inc. The home services marketplace reported quarterly adjusted earnings of 23 cents per share, down significantly from 70 cents in the same quarter last year. Angi's revenue also fell 10.5% to $265.63 million, missing analyst expectations of $268.95 million. As IAC holds a significant stake in Angi, the latter's performance often influences IAC's stock movement. Investors will be closely watching how IAC's management addresses these challenges and outlines strategies for growth in the coming quarters.
Comments