Lightspeed Commerce (NYSE:LSPD) Shares Gap Down on Disappointing Earnings

Lightspeed Commerce Inc. (NYSE:LSPD)’s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $14.50, but opened at $13.10. Lightspeed Commerce shares last traded at $12.62, with a volume of 309,641 shares traded.

The company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.07). Lightspeed Commerce had a negative net margin of 13.56% and a negative return on equity of 0.10%.

Wall Street Analyst Weigh In

LSPD has been the topic of several recent research reports. JPMorgan Chase & Co. raised their price target on shares of Lightspeed Commerce from $20.00 to $26.00 in a research report on Friday, November 8th. TD Securities lifted their target price on Lightspeed Commerce from $15.00 to $19.00 and gave the company a “hold” rating in a research report on Friday, November 8th. Benchmark increased their price target on Lightspeed Commerce from $20.00 to $21.00 and gave the company a “buy” rating in a research report on Friday, November 8th. Barclays cut Lightspeed Commerce from an “overweight” rating to an “equal weight” rating and dropped their price objective for the company from $20.00 to $18.00 in a research note on Friday, January 10th. Finally, Royal Bank of Canada upgraded shares of Lightspeed Commerce from a “strong sell” rating to a “moderate buy” rating in a research note on Friday, November 8th. Nine investment analysts have rated the stock with a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Lightspeed Commerce has an average rating of “Hold” and an average price target of $19.50.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Intact Investment Management Inc. grew its stake in Lightspeed Commerce by 10,117.5% during the third quarter. Intact Investment Management Inc. now owns 877,680 shares of the company’s stock valued at $14,473,000 after acquiring an additional 869,090 shares in the last quarter. Westfield Capital Management Co. LP grew its position in shares of Lightspeed Commerce by 30.0% during the 3rd quarter. Westfield Capital Management Co. LP now owns 3,325,531 shares of the company’s stock valued at $54,838,000 after purchasing an additional 766,688 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its holdings in shares of Lightspeed Commerce by 226.1% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 370,500 shares of the company’s stock worth $6,108,000 after purchasing an additional 256,900 shares during the period. Point72 Asset Management L.P. purchased a new stake in shares of Lightspeed Commerce in the third quarter worth $3,500,000. Finally, LMR Partners LLP bought a new stake in Lightspeed Commerce during the third quarter valued at $2,441,000. Hedge funds and other institutional investors own 68.68% of the company’s stock.

Lightspeed Commerce Stock Performance

The firm has a market capitalization of $1.91 billion, a PE ratio of -14.09 and a beta of 2.43. The company has a quick ratio of 5.94, a current ratio of 6.08 and a debt-to-equity ratio of 0.01. The company has a 50-day moving average of $15.65 and a 200 day moving average of $15.00.

Lightspeed Commerce Company Profile

Lightspeed Commerce Inc engages in sale of cloud-based software subscriptions and payments solutions for small and midsize businesses, retailers, restaurants, and golf course operators in North America, Europe, the United Kingdom, Australia, New Zealand, and internationally. Its Software as a Service platform enables customers to engage with consumers, manage operations, accept payments, etc.