Vimeo (NASDAQ:VMEO) Shares Gap Up on Strong Earnings

Vimeo, Inc. (NASDAQ:VMEO) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $3.55, but opened at $4.12. Vimeo shares last traded at $4.00, with a volume of 482,176 shares traded.

The company reported $0.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.05. The firm had revenue of $104.38 million for the quarter, compared to analysts’ expectations of $99.45 million. Vimeo had a return on equity of 7.71% and a net margin of 6.88%. The firm’s revenue for the quarter was up 2.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.03 EPS.

Analysts Set New Price Targets

Several brokerages recently issued reports on VMEO. Piper Sandler boosted their price target on Vimeo from $4.50 to $5.00 and gave the company a “neutral” rating in a research report on Tuesday. Truist Financial boosted their price target on Vimeo from $6.00 to $7.00 and gave the company a “buy” rating in a research report on Tuesday.

Insiders Place Their Bets

In other Vimeo news, CEO Philip D. Moyer bought 32,051 shares of the company’s stock in a transaction on Wednesday, August 7th. The shares were bought at an average price of $4.67 per share, for a total transaction of $149,678.17. Following the transaction, the chief executive officer now owns 1,712,490 shares of the company’s stock, valued at approximately $7,997,328.30. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 6.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Vimeo

Several institutional investors and hedge funds have recently added to or reduced their stakes in VMEO. Perigon Wealth Management LLC purchased a new stake in shares of Vimeo during the 4th quarter worth approximately $47,000. Headlands Technologies LLC increased its holdings in shares of Vimeo by 4,565.2% during the 1st quarter. Headlands Technologies LLC now owns 11,943 shares of the company’s stock worth $49,000 after buying an additional 11,687 shares during the last quarter. Qtron Investments LLC acquired a new stake in shares of Vimeo during the 4th quarter worth $50,000. Covestor Ltd increased its holdings in shares of Vimeo by 53.4% during the 1st quarter. Covestor Ltd now owns 13,629 shares of the company’s stock worth $56,000 after buying an additional 4,743 shares during the last quarter. Finally, Nisa Investment Advisors LLC increased its holdings in shares of Vimeo by 42.4% during the 2nd quarter. Nisa Investment Advisors LLC now owns 17,318 shares of the company’s stock worth $65,000 after buying an additional 5,160 shares during the last quarter. Institutional investors and hedge funds own 84.97% of the company’s stock.

Vimeo Stock Performance

The stock has a market capitalization of $756.62 million, a price-to-earnings ratio of 26.29 and a beta of 2.03. The firm has a fifty day moving average of $3.79 and a 200-day moving average of $4.00.

About Vimeo

Vimeo, Inc, together with its subsidiaries, provides video software solutions worldwide. It provides the video tools through a software-as-a-service model, which enables its users to create, collaborate, and communicate with video on a single platform. The company also offers over-the-top OTT streaming and monetization services; AI-driven video creation and editing tools; and interactive and shoppable video tools.