Weave Communications Stock Gains Major Institutional Backing Ahead of Earnings

Weave Communications US94724R1086

The coming weeks are set to be pivotal for Weave Communications (NYSE: WEAV), as the company prepares to release its full-year financial results. This period of anticipation coincides with significant movements among its major shareholders, most notably a substantial increase in ownership by the financial behemoth Fidelity (FMR LLC).

All eyes are on Wednesday, February 19th. After the U.S. market closes, Weave Communications is scheduled to announce its financial performance for both the fourth quarter and the complete fiscal year 2025. Management will host a webcast at 4:30 p.m. Eastern Time (22:30 CET) to discuss the results and provide commentary on the business outlook.

A primary focus for investors will be the company's revenue guidance. For the full year, Weave has projected revenue to land between $236.8 million and $239.8 million. Whether the company meets or exceeds this target range is widely expected to be a key driver for the stock's near-term trajectory.

Fidelity Consolidates Its Position as a Major Holder

Recent regulatory filings reveal a notable consolidation of ownership. Fidelity, one of the world's largest asset managers, has significantly bolstered its stake. The firm now holds approximately 7.38 million shares, representing about 9.5% of the company, cementing its role as a cornerstone investor.

This move by Fidelity is part of a broader narrative of shifting institutional positions. Thrivent Financial for Lutherans, for instance, aggressively increased its holding by 158% in the third quarter, building a position of over 1.1 million shares. In contrast, Federated Hermes reduced its exposure during the same period, selling roughly 233,000 shares. These opposing actions highlight the divergent views professional investors hold regarding the stock's current valuation.

Analyst Sentiment and Price Targets Remain Varied

Market analysts continue to exhibit a range of opinions on Weave Communications. Consensus ratings fluctuate between "Hold" and "Buy," while price targets show considerable dispersion. Cautious estimates sit around $11.50 per share, while more optimistic research points to a potential value of $15.10.

The upcoming earnings report will be a critical test for the stock's valuation. Investors will scrutinize whether the results can provide enough momentum to sustainably push shares above the $15 threshold. Sentiment data recently saw a minor dampening due to insider sales in late December, which included a transaction of approximately 9,600 shares.

Key Data Points:
* Major Investor: Fidelity (FMR LLC) holds a 9.5% stake, equating to roughly 7.38 million shares.
* Earnings Release: Q4 and FY 2025 results are due after market close on February 19.
* Revenue Forecast: Full-year guidance is set between $236.8 million and $239.8 million.
* Price Targets: Analyst projections range from $11.50 to $15.10 per share.

The February 19th announcement will ultimately reveal if Weave Communications has successfully hit the upper end of its revenue forecast and what guidance management provides for the new fiscal year, offering clarity in a market with mixed signals.