Pinterest Inc (NYSE:PINS) shares are rallying on Wednesday despite the Nasdaq being down 0.71% and the S&P 500 has shed 0.74%.
- Pinterest stock is building positive momentum. Why is PINS stock trading higher?
Roughly two weeks prior, Pinterest got capital commitment tied to a large buyback plan, possibly helping the stock continue to find bids even as major indices slide.
Elliott's $1 Billion Commitment Fuels Pinterest's Capital Plan
Elliott Investment is set to invest by purchasing Pinterest's convertible senior notes with an initial conversion price of about $22.72 per Class A share, a 30% premium to the March 2, 2026, closing price, and the notes carry a 1.75% annual interest rate.
Pinterest plans to use Elliott's investment for an accelerated share repurchase (ASR) agreement, plus another $500 million from cash on hand, after the board authorized a new $3.5 billion share repurchase program that replaces the existing plan.
The company expects to complete transactions under the ASR agreement by no later than the second-quarter of 2026, and it has already repurchased $473 million of stock so far in 2026 under its November 2024 authorization.
Pinterest Technical Analysis
Pinterest is trading 3.2% above its 20-day SMA, but it's 23.2% below its 100-day SMA, keeping the bigger-picture trend pointed down. Shares are down 39.95% over the past 12 months and are positioned closer to the 52-week low ($13.84) than the 52-week high ($39.93).
RSI is at 45.17, which sits in neutral territory and suggests the rebound attempt still lacks strong upside momentum. MACD is at -0.5021 versus a signal line of -0.7202, a bullish configuration that hints selling pressure is easing even though the indicator remains below zero.
RSI in the 30–50 range with bullish MACD indicates momentum leaning bullish.
- Key Resistance: $20.00
- Key Support: $18.50
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $27.73. Recent analyst moves include:
- Rosenblatt: Neutral (Maintains Target to $20.00) (Mar. 4)
- Argus Research: Downgraded to Hold (Mar. 2)
- Loop Capital: Downgraded to Hold (Lowers Target to $18.00) (Feb. 13)
Benzinga Edge Rankings: The Benzinga Edge scorecard for Pinterest highlights its strengths and weaknesses compared to the broader market.
- Momentum: Bearish (Score: 3.47) — The stock is showing very weak trend strength versus the broader market, which fits with its longer-term drawdown.
- Quality: Weak (Score: 12.22) — Profitability/consistency factors screen poorly versus peers, which can keep longer-term investors cautious.
- Value: Neutral (Score: 63.99) — Valuation looks more middle-of-the-pack on this model, even with a premium P/E, suggesting the selloff has improved the setup versus prior levels.
PINS Price Action: Pinterest shares were up 1.40% at $18.82 at the time of publication on Wednesday, according to Benzinga Pro.
Image: Shutterstock
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