Strength Seen in IAC/InterActiveCorp (IAC): Can Its 3.2% Jump Turn into More Strength?
Zacks Investment Research | May 27, 2021 01:44AM ET
IAC/InterActiveCorp (NASDAQ:IAC) shares ended the last trading session 3.2% higher at $163.80. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 37.2% loss over the past four weeks.
Wedbush’s target price of $193 implies an 18% upside. The Oppenheimer analyst has set a target price of $185, which is 13% above the current price.
IAC/InterActiveCorp has completed the previously announced spin-off its full stake in Vimeo, a video software company. Vimeo has begun trading as a separate, publicly-traded company on the NASDAQ under the symbol “VMEO”. Notably, Vimeo is the 11th public company to spin out from IAC/InterActiveCorp in the last 25 years of its history. Per the deal, IAC/InterActiveCorp shareholders received 1.6235 shares of the newly-formed VMEO for each share of IAC/InterActiveCorp held.
IAC would continue to operate Dotdash, Search, Mosaic Group, Care.com and other businesses, along with majority ownership in ANGI Homeservices, which includes HomeAdvisor and Handy.
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Price and Consensus
This Y is expected to post quarterly loss of $0.37 per share in its upcoming report, which represents a year-over-year change of -76.2%. Revenues are expected to be $901.29 million, up 24.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For IAC/InterActiveCorp, the consensus EPS estimate for the quarter has been revised 11.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on IAC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see Zacks Investment Research
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