Weibo (NASDAQ:WB) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Weibo from “hold” to “strong sell,” adding to broadly negative analyst sentiment. The stock has an average “reduce” rating and a consensus price target of $8.80.
• Weibo shares opened at $6.49, near their 12-month low of $6.47, compared with a 12-month high of $12.96. The stock has a market capitalization of approximately $1.59 billion and a P/E ratio of 5.36.
• Despite the downgrade, Weibo exceeded quarterly expectations, reporting $0.38 in earnings per share versus $0.36 expected and revenue of $453.83 million versus a $442.45 million consensus estimate.

Weibo (NASDAQ:WB - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Thursday, Zacks reports.

WB has been the subject of a number of other research reports. Bank of America restated an "underperform" rating on shares of Weibo in a research report on Friday, August 21st. Citigroup cut shares of Weibo from a "buy" rating to a "neutral" rating and decreased their price target for the stock from $9.30 to $7.80 in a research note on Thursday, August 20th. Benchmark reissued a "hold" rating on shares of Weibo in a report on Thursday, August 20th. Jefferies Financial Group restated a "buy" rating and set a $9.80 price objective on shares of Weibo in a research report on Thursday, May 28th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Weibo in a report on Friday, July 24th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Weibo has an average rating of "Reduce" and a consensus target price of $8.80.

Weibo Price Performance

Shares of NASDAQ:WB opened at $6.49 on Thursday. The company has a quick ratio of 3.59, a current ratio of 3.59 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of $1.59 billion, a PE ratio of 5.36 and a beta of 0.18. The firm's 50 day moving average price is $7.27 and its 200-day moving average price is $7.91. Weibo has a twelve month low of $6.47 and a twelve month high of $12.96.

Weibo (NASDAQ:WB - Get Free Report) last released its quarterly earnings results on Thursday, August 20th. The information services provider reported $0.38 earnings per share for the quarter, topping the consensus estimate of $0.36 by $0.02. Weibo had a net margin of 17.78% and a return on equity of 8.87%. The business had revenue of $453.83 million for the quarter, compared to the consensus estimate of $442.45 million. Equities research analysts expect that Weibo will post 1.02 EPS for the current year.

Hedge Funds Weigh In On Weibo

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. QRG Capital Management Inc. grew its stake in shares of Weibo by 15.2% during the second quarter. QRG Capital Management Inc. now owns 23,465 shares of the information services provider's stock worth $170,000 after acquiring an additional 3,090 shares during the last quarter. Tidal Investments LLC acquired a new stake in Weibo in the 2nd quarter worth approximately $208,000. Squarepoint Ops LLC grew its position in Weibo by 55.0% during the 2nd quarter. Squarepoint Ops LLC now owns 101,006 shares of the information services provider's stock worth $733,000 after purchasing an additional 35,831 shares during the last quarter. Nykredit A S purchased a new stake in Weibo during the 2nd quarter worth approximately $93,000. Finally, Headlands Technologies LLC increased its stake in Weibo by 150.0% during the 2nd quarter. Headlands Technologies LLC now owns 119,350 shares of the information services provider's stock valued at $866,000 after purchasing an additional 71,607 shares in the last quarter. Hedge funds and other institutional investors own 68.77% of the company's stock.

About Weibo

Weibo Corporation NASDAQ: WB operates a social media platform in China that enables users to create, share and discover short-form content. Often described as a microblogging service, Weibo supports public posts, multimedia content, hashtags, trending topics, comments, direct messaging and interactions among users, public figures, media organizations and businesses.

The company generates revenue primarily through advertising and marketing services, including promoted content, display advertising and advertising products designed to help brands reach targeted audiences.

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