Autohome (NYSE:ATHM) Stock Price Up 7.6% - Time to Buy?

Key Points

• Autohome shares rose 7.6% to approximately $22.99 on heavier-than-average trading volume, lifting the company’s market capitalization to about $2.66 billion.
• Analyst sentiment remains bearish: JPMorgan, HSBC, Zacks Research and others recently downgraded the stock, resulting in a consensus “Reduce” rating and an average price target of $17.15.
• Autohome announced a $0.66 special dividend payable July 31, while insiders sold shares to cover tax obligations; institutional investors own approximately 63.1% of the company.

Shares of Autohome Inc. (NYSE:ATHM - Get Free Report) traded up 7.6% during trading on Tuesday . The company traded as high as $22.95 and last traded at $22.9880. Approximately 894,815 shares traded hands during trading, an increase of 26% from the average daily volume of 710,777 shares. The stock had previously closed at $21.37.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on ATHM shares. JPMorgan Chase & Co. decreased their price target on shares of Autohome from $20.00 to $17.00 and set a "neutral" rating for the company in a research note on Wednesday, June 3rd. Wall Street Zen lowered shares of Autohome from a "hold" rating to a "sell" rating in a research note on Saturday, April 25th. HSBC cut shares of Autohome from a "buy" rating to a "hold" rating and set a $17.30 price objective on the stock. in a report on Thursday, May 14th. Zacks Research downgraded shares of Autohome from a "hold" rating to a "strong sell" rating in a research note on Tuesday, June 9th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of Autohome in a report on Friday, July 17th. Three equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Autohome currently has a consensus rating of "Reduce" and an average price target of $17.15.

Autohome Stock Performance

The firm has a 50-day moving average price of $18.76 and a 200-day moving average price of $19.40. The stock has a market cap of $2.66 billion, a PE ratio of 17.53 and a beta of 0.23.

Autohome Announces Dividend

The company also recently announced a special dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 2nd will be issued a $0.66 dividend. The ex-dividend date of this dividend is Thursday, July 2nd. Autohome's payout ratio is 183.97%.

Insider Activity at Autohome

In other news, CFO Yan Zeng sold 24,300 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $4.35, for a total transaction of $105,705.00. Following the sale, the chief financial officer owned 169,940 shares in the company, valued at $739,239. This represents a 12.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Bibo Xiang sold 10,508 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $4.35, for a total transaction of $45,709.80. Following the sale, the chief technology officer owned 62,368 shares in the company, valued at approximately $271,300.80. The trade was a 14.42% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 5.70% of the company's stock.

Hedge Funds Weigh In On Autohome

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Raymond James Financial Inc. bought a new stake in shares of Autohome in the 2nd quarter worth $29,000. Global Retirement Partners LLC lifted its holdings in shares of Autohome by 205.9% during the fourth quarter. Global Retirement Partners LLC now owns 1,652 shares of the information services provider's stock valued at $37,000 after purchasing an additional 1,112 shares in the last quarter. Guinness Asset Management LTD lifted its holdings in shares of Autohome by 20.7% during the fourth quarter. Guinness Asset Management LTD now owns 3,271 shares of the information services provider's stock valued at $76,000 after purchasing an additional 560 shares in the last quarter. Parallel Advisors LLC boosted its position in shares of Autohome by 30.5% during the third quarter. Parallel Advisors LLC now owns 2,886 shares of the information services provider's stock valued at $82,000 after buying an additional 674 shares during the last quarter. Finally, Virtus Advisers LLC purchased a new stake in shares of Autohome during the third quarter valued at $106,000. 63.08% of the stock is owned by institutional investors.

Autohome Company Profile

Autohome Inc NYSE: ATHM operates one of China’s leading online destinations for automobile consumers, offering a comprehensive suite of digital platforms and services throughout the vehicle ownership lifecycle. Headquartered in Beijing, the company’s core website and mobile applications deliver news, reviews, pricing information, photos, videos and interactive tools to help prospective buyers evaluate new and used vehicles. By aggregating rich editorial content with user-generated ratings and expert analyses, Autohome seeks to guide consumers through research, purchase and after-sales decision-making.

In addition to its consumer-facing properties, Autohome provides automakers, dealers and service providers with integrated digital marketing and e-commerce solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.