Piper Sandler Lowers IAC Price Target to $39 from $44

Piper Sandler Lowers IAC Price Target to $39 from $44

Piper Sandler, a leading research firm, has recently revised its price target for IAC Inc. (NASDAQ:IAC) from $44 to $39, reflecting a more cautious outlook on the company's stock. This adjustment comes amidst a series of institutional investment changes and mixed earnings results for the company.

Institutional investors have shown significant interest in IAC, with approximately 88.90% of its stock held by institutional investors and hedge funds [1]. During the first quarter, several prominent investors increased their stakes in IAC, including Blueshift Asset Management LLC, which bought 15,775 shares valued at approximately $725,000 [1]. TD Private Client Wealth LLC and Aster Capital Management DIFC Ltd also significantly increased their positions in the company [1].

Despite strong institutional interest, IAC's stock performance has been mixed. The company reported a positive earnings surprise in its Q2 2025 earnings, with earnings per share (EPS) of $2.57, surpassing expectations of a negative $0.2927 [2]. However, revenue fell short of expectations at $586.9 million compared to the forecasted $601.35 million, leading to a 13.41% drop in stock price post-announcement [2]. The company's revenue growth was driven by digital advertising and performance marketing, while it reduced its dependency on Google traffic from 52% to 28% [2].

The company's latest earnings call highlighted several strategic focuses, including long-term digital revenue growth of 10% and expansion of its Decipher Plus platform. However, the revenue miss and broader market conditions have led to a cautious outlook among analysts [2].

Piper Sandler's price target adjustment aligns with the broader trend of analyst downgrades for IAC. Goldman Sachs, UBS Group, JMP Securities, Citigroup, and JPMorgan Chase & Co. have all reduced their price objectives for the company in recent months [1]. The consensus rating among analysts remains "Moderate Buy" with a price target of $54.08 [1].

In conclusion, the recent institutional investment activity and mixed earnings results have led to a more cautious outlook on IAC Inc.'s stock. Piper Sandler's price target adjustment reflects this shift, but investors should continue to monitor the company's strategic initiatives and market conditions.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-blueshift-asset-management-llc-buys-shares-of-15775-iac-inc-nasdaqiac-2025-08-01/
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-iacs-q2-2025-eps-surprises-stock-falls-13-93CH-4170868