Lake Street Capital Lowers Cardlytics Price Target, Maintains Hold Rating

Lake Street Capital recently updated its assessment of Cardlytics (NASDAQ:CDLX), lowering the price target from $5.00 to $3.00. This adjustment was shared in a report to investors issued on Thursday. The brokerage firm has also assigned a "hold" rating to Cardlytics, suggesting that they believe the stock is best to keep rather than buy or sell at this time.

This new price target implies a possible upside of approximately 44.93% based on the company's last closing price. Other analysts have echoed similar sentiments regarding Cardlytics in their recent evaluations. For instance, Needham & Company has reaffirmed its "hold" rating for the stock, while Evercore ISI has reduced its price target from $4.00 to $3.00, maintaining an "in-line" rating.

As of now, the sentiment towards Cardlytics is rather mixed; one analyst has issued a sell rating, five others have opted for a hold, while one analyst stands out with a strong buy rating. MarketBeat.com data shows that Cardlytics has an average rating of "hold" alongside an average price target of $6.42.

Performance Overview of Cardlytics Stock

During midday trading on Thursday, shares of Cardlytics increased by $0.09, reaching $2.07. The trading volume for the day hit 6,606,060 shares, compared to an average daily volume of around 1,115,559 shares. Cardlytics currently enjoys a market capitalization of $105.20 million, with a price-to-earnings ratio standing at -0.34, which indicates negative earnings.

The company has a high debt-to-equity ratio of 2.40, demonstrating a significant amount of debt compared to equity. In terms of liquidity, both the quick ratio and current ratio are at 1.18. Over the past year, Cardlytics's stock has seen a low of $1.77 and a high of $20.52, showcasing considerable volatility.

Recent Insider Trading Activities

Recent insider trading activities have also raised eyebrows. CEO Amit Gupta sold 46,857 shares on February 18th at an average price of $3.40, totaling approximately $159,313.80. Following this transaction, Gupta now holds 418,637 shares in the company, indicating a decrease of about 10.07% in their ownership.

Similarly, CFO Alexis Desieno sold 24,778 shares, also on February 18th, valued at around $84,245.20. As a result of this sale, Desieno's ownership of Cardlytics shares decreased by 14.95%, and they currently possess 140,948 shares. Over the past 90 days, insiders have sold a total of 111,454 shares valued at $391,864. Insiders now control 4.40% of the company's stock.

Institutional Investor Movements

The stakeholder landscape for Cardlytics is also shifting as large investors make adjustments to their holdings. Mirabella Financial Services LLP acquired a new stake in Cardlytics worth about $4,285,000 during the fourth quarter. D. E. Shaw & Co. Inc. significantly expanded its holdings by 97.4%, now owning 1,131,505 shares valued at approximately $4,198,000.

Other notable investors include Geode Capital Management LLC, which increased its position by 0.7% to hold 1,060,739 shares, and RBF Capital LLC, which raised its stake by 64.7%, now owning 803,763 shares valued at approximately $2,982,000. Overall, institutional investors and hedge funds hold about 68.10% of Cardlytics's stock.

About Cardlytics, Inc.

Cardlytics, Inc operates a distinct advertising platform in the United States and the United Kingdom. It specializes in providing a proprietary bank advertising channel that helps marketers connect with customers through various financial institutions. This platform facilitates advertising via digital channels including online, mobile apps, emails, and real-time notifications. Additionally, the company offers the Bridg platform, which allows marketers to perform analytics and targeted loyalty marketing based on point-of-sale data, enabling them to gauge the effectiveness of their promotional strategies.

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