Cardlytics stock: buy or sell?

CDLX stock price: $83.50 -0.54% At close on January 17th, 2020

Updated on:
January 17th, 2020

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After reaching all time highs on Tuesday, Cardlytics declined -0.54% yesterday to $83.50. On Monday CDLX boosted an extraordinary 19.78%. On Wednesday CDLX plunged a frightening -5.71%.

Cardlytics, Inc. operates purchase data intelligence platforms in the United States and the United Kingdom. The company operates through two segments, Cardlytics Direct and Other Platform Solutions.

Should I buy Cardlytics stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Cardlytics stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Cardlytics stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 7 ratings published for CDLX stock in the last 30 days.

The general sentiment of these ratings is bullish for CDLX stock, with 7 positive ratings.
Is CDLX a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-9SunTrust Banksn/aBuy
2019-8-9Raymond Jamesn/aOutperform
2019-7-24Bank of AmericaBuyBuy
2019-7-1William Blairn/aOutperform
2019-5-6SunTrust Banksn/aBuy
2019-5-10KeyCorpOverweightOverweight
2019-3-6SunTrust Banksn/aBuy

Cardlytics stock analysis

Daily outlook

After several days of continuous rises in past weeks, Cardlytics declined -0.54% to $83.50.

After several days of continuous hikes in past weeks, Cardlytics declined -0.54% to $83.50. From a daily perspective, CDLX is in a short term uptrend after plotting its last bottom ($59.49, on Jan/2) higher than the previous bottom, and its last top ($90.50, on Tuesday) also over the previous top. Now trading in between its last bottom and last top CDLX might consolidate in a plain range, waiting to break out over $90.50 or down under $59.49. On Tuesday, CDLX hit a new all time high, pushing higher than on Monday tops. Check different trading setups that use ATHs as triggers. On October CDLX price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock.

CDLX stock chart (daily)

Weekly outlook

Shares of Cardlytics closed this week at $83.50 after topping to a new all time high ($90.50) and rocketed an outstanding 22.38%. Early December CDLX collapsed a frightening -7.65% in just one week.

CDLX shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom early December, CDLX climbed unceasignly breaking out to new all time highs. Since early June 2019 when SMA20w and SMA40w crossed up, CDLX price gained $60.55 per share (263.83%). Since early May 2019 when CDLX stock price broke up the SMA40w line, it gained $66.54 (392.33%).

CDLX stock chart (weekly)

Cardlytics stock price history

Cardlytics stock went public on February 9th, 2018 with a price of $12.101. Since then, CDLX stock grew a 590.10%, with an average of 590.10% per year. If you had invested $1,000 in Cardlytics stock in 2018, it would worth $5,901.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Cardlytics stock historical price chart

CDLX stock reached all-time highs on Tuesday with a price of $90.50.

Cardlytics stock price target is $30.50

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 6 price predictions for CDLX stock:
CDLX stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-9SunTrust BanksRaises Target$25.00$35.0040%
2019-8-9Raymond JamesRaises Target$24.00$40.0066.7%
2019-7-24Bank of AmericaReiterates$22.00$32.0045.5%
2019-5-6SunTrust BanksReiteratesn/a$25.00-
2019-5-10KeyCorpRaises Target$25.00$26.004%
2019-3-6SunTrust BanksReiteratesn/a$25.00-
(in average)$24.00$30.5027.0%
Moving in a range from $40.00 and $25.00, the price prediction for CDLX stock is $30.50. In average, analysts' outlook on CDLX price target is positive, upgrading the target by a 27.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, Cardlytics presented its financial report, posting an impressive growth for the Earnings per Share (EPS). Analyst expected $-0.43 per share, but Cardlytics posted $-0.51.
CDLX earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.65n/a
2017-Q2-n/a-0.28n/a
2017-Q3-n/a-0.14n/a
2017-Q42018-03-19-1.35-1.1n/a
2018-Q12018-05-10-0.62-0.6n/a
2018-Q22018-08-14-0.48-0.62n/a
2018-Q32018-11-13-0.63-0.42n/a
2018-Q42019-03-05-0.43-0.51n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Cardlytics annual revenues skyrocketed an astounding 15.59% to $150.68 M USD from $130.37 marked in 2017. When comparing 2018 vs 2017, in contrast, profit margin (that is, the net income divided by revenues) plunged a -20.13% to -35.20%.

CDLX annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2015$78 M-$-40.63 M-52.3%-
2016$113 M45.32%$-75.70 M-67.1%86.33%
2017$130 M15.55%$-19.64 M-15.1%-74.05%
2018$151 M15.59%$-53.04 M-35.2%170.06%

Quarterly financial results

Cardlytics posted $47.82 M in revenues for 2018-Q4, a 38.28% improvement compared to previous quarter. Reported quarter earnings marked $-11.57 M with a profit margin of -24.19%. Profit margin remained steady a 0.01% compared to previous quarter when profit margin was -24.20%. When comparing turnover to same quarter last year, Cardlytics sales marked an exceptional gain and climbed a 21.78%.
CDLX quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$27 M-$-12.46 M-46.4%-
2017-Q2$33 M22.06%$-0.65 M-2.0%-94.80%
2017-Q3$31 M-4.28%$-2.47 M-7.9%281.79%
2017-Q4$39 M25.03%$-4.06 M-10.3%63.95%
2018-Q1$33 M-16.69%$-20.06 M-61.3%394.45%
2018-Q2$36 M8.73%$-13.05 M-36.7%-34.91%
2018-Q3$35 M-2.78%$-8.37 M-24.2%-35.89%
2018-Q4$48 M38.28%$-11.57 M-24.2%38.22%

Cardlytics ownership

When you are planning to invest in a company, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Cardlytics, 10.47% of all outstanding shares are owned by its staff.

Bearish positions for CDLX stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Cardlytics:

CDLX
Market cap$2.1 B
Total shares25.7 M
Float shares20.7 M
  - Institutional holdings (%)84.4%
  - Insider holdings (%)10.5%
Shares in short selling0.0%

Cardlytics summary

Friday, January 17th, 2020
Open$84.86
Close$83.50
Day range$81.56 - $84.99
Previous close$83.95
Session gain-0.54%
Average true range$4.55
50d mov avg$60.83
100d mov avg$48.67
200d mov avg$36.37
Daily patternlt06a
Weekly pattern lb03c

Cardlytics performance

To better understand Cardlytics performance you must becnhmark its gains with other related stocks in same sector or industry. In the following table, we compare Cardlytics to :
Stock3m6m12m
CDLXCardlytics119.05%201.44%378.78%

Cardlytics competitors

Unfortunately, we could not find any public company that could be defined as Cardlytics competitor. This doesn't mean Cardlytics does not have any competitor in the market, it's just we could not detected it.