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Angie’s List (ANGI) Plummets 16 Percent After Slashing Membership Costs

  +Follow October 3, 2013 12:23PM
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In a bid to attract customers to their contractor-review site, on Oct. 3 Angie’s List Inc. (ANGI) unexpectedly cut membership costs in 75 percent of markets, lowering the cost of an annual membership from $40 to $10. The price slash comes mere days after CTO Manu Thapar abruptly left, shaking investor confidence in the tech company.

Analysts, however, remain bullish on the Indianapolis-based site. 13 out of 20 analysts polled by Thompson Reuters give the stock a rating of "buy," and the consensus price target remains 40 percent higher than the current price.

Investors feel much differently. 37.91 percent of the float on the stock is being sold short, the highest rate of any stock currently being traded on the US markets.

Even before the membership price slash and Thapar’s departure, Angie's List bears had questioned the sustainability of a site that is increasingly losing market share to the wildly popular Yelp Inc. (YELP) . On In their Sept. 10 article “Ain’t it Time to Say Goodbye to Angie’s List” Forbes writer David Trainer pointed out that the company has never made a profit, and is doomed by “its complete lack of profitability and shaky business model.”

CEO William Oestrele has waved off fears that the company is slipping, claiming the new membership model is merely a test as executives continue "trying to understand the impact on member acquisition and retention." Investors, however, are clearly worried that it the move is less likely experimentation and more likely necessity prompted by slipping membership rates.

Despite analyst bullishness that puts a consensus price target of $29 a share on Angie’s List, for now the market is definitely skittish on the stock. The stock plummeted 16.25 percent to hit $17.58 a share.

 

(image courtesy fo Flickr)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for ANGI
Harry Walkman
28 Jan 15 10:04:02
$ANGI The 52-Week Low Club for Tuesday http://t.co/1WUWQvC9UQ
Ray Bawania
28 Jan 15 09:12:31
Amazing: $ANGI hasn't turned a profit in 20 yrs but still has a market cap of $250M. Further stock price fall coming. http://t.co/dlj6yJDh4R
Analyst Ratings
28 Jan 15 08:46:28
Get the latest news and updates for $IMI $ANGI $TCP $MNST $STB automatically with ARN Daily http://t.co/nSJuDtP5Bv
WKRB News
28 Jan 15 07:50:02
Angie's List Price Target Cut to $5.75 $ANGI http://t.co/jIWsvpakBn
StockNewsWires
28 Jan 15 07:41:04
$ANGI: Angie's List Price Target Cut to $5.75 (ANGI): http://t.co/EPD1ZQZy5u
Tim Insko
28 Jan 15 07:25:59
Spending shareholder & taxpayer money to enrich themselves RT @wellsmontague: $ANGI what is this company doing that one cant get for free?
Andy
28 Jan 15 07:22:01
$spy now I am almost neutral in market regarding long and short, long with most $oas and $angi and short with semis and some oversold plays
Andy
28 Jan 15 07:12:32
$spy $angi this one as well ;-)
Andy
28 Jan 15 07:10:59
$spy $angi adding as well. stop around 1 bux below entry
Andy
28 Jan 15 07:06:34
$spy $oas $angi and which are hgihyl shorted already? answer is pretty clear ;-)
Andy
28 Jan 15 07:06:14
$spy $oas $angi always ask u: wd u like to be short in names which have huge analyst price targets, are aggressively bought by insiders
Andy
28 Jan 15 07:05:29
$spy $oas and $angi as well both names highls shorted. so collreation to overall market shouldn't be a big matter. oversold dialy cahrts
Andy
28 Jan 15 07:04:46
$spy but u shojld be fien with longs in $oas and $angi, just go smaller size, sclae in swing trade appraoch with wide stop
Andy
28 Jan 15 06:59:40
$spy $angi Consensus Price Target: $12.89 (161.49% upside).
Andy
28 Jan 15 06:58:45
$spy $angi but angi as well. 5 bux level is defintiely worht a shot, after this insider byuing 2.5 bux higher
Andy
28 Jan 15 06:58:15
$spy $oas and $angi buying more into both names here. especially oas looks huge
Wells
28 Jan 15 06:54:06
$ANGI what is this company doing that one cant get for free?
Andy
28 Jan 15 06:41:26
$spy $angi long more as well.
Andy
28 Jan 15 06:38:53
$spy $angi and $oas insider buying occured on way higher price lelvels. would buy more and use wide stop as env is negative here
Andy
28 Jan 15 06:38:25
$spy $angi and $oas, buying more here agian. huge long swing trades in my op. wide stops. aggressive insider buying in both names
Andy
28 Jan 15 06:32:03
$spy $angi differnet insiders bought for about 300K usd at around 7.5, 2.5 bux higher then current market price. buying more here
Andy
28 Jan 15 06:31:11
$spy $angi Consensus Price Target: $12.89 (161.49% upside). $oas byuign more
Andy
28 Jan 15 06:30:44
$spy $angi long!!!!!!!!!! long more ;-)
ProVesting
27 Jan 15 22:31:03
$ANGI: Angie's List Hits New 12-Month Low After Analyst Downgrade (ANGI): http://t.co/W9DmyFwidi
Ticker Report
27 Jan 15 22:26:27
Angie's List Hits New 12-Month Low After Analyst Downgrade $ANGI http://t.co/kgsrDo4lh2
Ryan Patrick
27 Jan 15 13:37:04
Angie's List drops below $5, on course to hit $0 really soon. Perhaps they should sell their massive building in Indianapolis. $ANGI
+/-
27 Jan 15 13:33:42
he is about as dumb as the guy that bought $ANGI on Friday then @marcomnyc
+/-
27 Jan 15 13:29:44
Picking Angie’s bottom will give you stinky fingers $ANGI http://t.co/IiBjHyXX4Q
The Legacy News
27 Jan 15 11:26:18
Angie's List Hits New 12-Month Low Following Analyst Downgrade $ANGI http://t.co/dVYPaGLPMN
ProVesting
27 Jan 15 10:41:08
$ANGI: Angie's List Hits New 52-Week Low on Analyst Downgrade (ANGI): http://t.co/otno3kJxhp
Daily Contracts
27 Jan 15 09:38:02
Real-Time feed of company contracts, original agreements and executive updates from Angie's List Inc. $ANGI http://t.co/sIcgqlXphk
Analyst Ratings
27 Jan 15 07:33:00
Angie’s List Inc. Receives a Hold from Northland Securities $ANGI http://t.co/yme0bkHekG
Analyst Ratings
27 Jan 15 07:32:02
Northland Securities Reiterates a Hold Rating on Angie’s List Inc. $ANGI http://t.co/iMsgqA1D1b
Locate Express
27 Jan 15 07:26:36
Even Angie's List Indianapolis hometown supporters are questioning the company's sustainability. $ANGI http://t.co/aPwFWDT1ge
Andy
27 Jan 15 06:55:01
$spy $angi buyin gmore here
Andy
27 Jan 15 06:52:33
$spy $angi huge long oporitny in my op. move down belwo 5 bux and then bought back while as insider buying occured around 2.5 bux higher
Andy
27 Jan 15 06:51:03
$spy $angi 17% shortz of float, 10 days to cover
Andy
27 Jan 15 06:50:18
$spy $angi Consensus Price Target: $12.89 (150.81% upside)
Andy
27 Jan 15 06:50:06
$spy $angi mabye 300K insider buying around 7.5iesh price lelve
Andy
27 Jan 15 06:49:32
$spy $angi down more then 2%, oversold, gap down, buy div on daily and aggressive insider buying on way higher price levels
Andy
27 Jan 15 06:49:01
$spy $angi long here
Chris Kelly
27 Jan 15 06:12:35
RT @IHPosts: Stocks Trending Now: http://t.co/oFJbweffVo $ANGI $GEVNW $RGCTF $GDNEF $KYN $GNGXF $CTC $AUTX $BALT $PBIB $CPBLF $SITO ~
Marlen
27 Jan 15 05:20:36
01/27/15 PRICE TARGET CHANGED: Angie's List $ANGI Northland Capital Market Perform $6.50>$5.75
US Banking News
27 Jan 15 04:36:07
Northland Securities Cuts Angie's List Price Target to $5.75 $ANGI http://t.co/UGv5KJQBsy
StockNewsWires
27 Jan 15 04:31:02
$ANGI: Panel Considers Angie's List Incentives: http://t.co/JPNnKWz3gZ
SIAnalystWire
27 Jan 15 04:30:47
UPDATE: Angie's List $ANGI Price Target Trimmed at Northland Capital Markets; Consensus Too ... http://t.co/pzHi1mqzfK
Ticker Report
27 Jan 15 04:26:58
Angie's List PT Lowered to $5.75 $ANGI http://t.co/4tNlZRAnqf
ProVesting
27 Jan 15 04:21:03
$ANGI: Angie's List PT Lowered to $5.75 (ANGI): http://t.co/PqC1FyDI7S
US Consumer News
27 Jan 15 04:19:00
Angie's List's PT cut by Northland Securities to $5.75. market perform rating. http://t.co/T79l8Zonvd $ANGI #ANGI
Analyst Ratings
27 Jan 15 04:18:40
Angie's List's PT cut by Northland Securities to $5.75. market perform rating. http://t.co/Kb1t8Jai2l $ANGI #ANGI
				
				
  +Follow October 3, 2013 12:23PM
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