Barrington analyst Patrick Sholl has maintained their neutral stance on FLNT stock, giving a Hold rating today.
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Patrick Sholl has given his Hold rating due to a combination of factors impacting Fluent’s current and future performance. Despite a decline in third-quarter revenues and EBITDA falling below estimates, there is optimism for sequential improvement in the fourth quarter and expectations for positive EBITDA generation by year-end. The company’s strategic pivot towards Commerce Media Solutions, which has shown significant growth, is a positive indicator. However, the ongoing market headwinds affecting the O&O ecosystem and the speculative risk associated with the stock contribute to a cautious outlook.
Fluent’s repositioning efforts to focus on Commerce Media are promising, with substantial revenue growth in this segment. The expansion into various retail and commerce media solutions is expected to enhance margins over time. While the partnership with Rebuy offers access to a larger platform, the impact on margins is anticipated to be modest. The company’s capital structure improvements, including debt reduction, are steps towards a more stable financial footing, but the speculative nature of the stock and existing market challenges justify the Hold rating.
In another report released today, Canaccord Genuity also maintained a Hold rating on the stock with a $2.50 price target.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FLNT in relation to earlier this year.