AI Squared Management Ltd Invests $496,000 in iQIYI, Inc. Sponsored ADR (NASDAQ:IQ)

Key Points

• AI Squared Management Ltd purchased 219,500 shares of iQIYI, valued at approximately $496,000, making it the 15th largest holding in their portfolio.
• Other investors, including Krane Funds Advisors LLC and Vanguard Group Inc., have also significantly increased their stakes in iQIYI during the first quarter.
• Wall Street analysts have downgraded iQIYI from a "hold" to a "sell" rating, with the average target price set at $2.39.

AI Squared Management Ltd acquired a new position in shares of iQIYI, Inc. Sponsored ADR (NASDAQ:IQ - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 219,500 shares of the company's stock, valued at approximately $496,000. iQIYI makes up approximately 0.5% of AI Squared Management Ltd's portfolio, making the stock its 15th biggest holding.

Several other hedge funds and other institutional investors have also modified their holdings of IQ. Vanguard Group Inc. raised its position in iQIYI by 2.8% in the 4th quarter. Vanguard Group Inc. now owns 18,293,085 shares of the company's stock worth $36,769,000 after purchasing an additional 502,154 shares during the last quarter. Norges Bank acquired a new stake in iQIYI in the fourth quarter valued at approximately $3,914,000. Wellington Management Group LLP acquired a new position in shares of iQIYI during the fourth quarter worth $1,998,000. Franklin Resources Inc. raised its stake in iQIYI by 12.0% during the fourth quarter. Franklin Resources Inc. now owns 194,274 shares of the company's stock worth $390,000 after buying an additional 20,888 shares during the last quarter. Finally, ExodusPoint Capital Management LP bought a new stake in iQIYI in the fourth quarter valued at $70,000. Institutional investors and hedge funds own 52.69% of the company's stock.

iQIYI Stock Performance

iQIYI stock traded down $0.04 during midday trading on Monday, reaching $1.81. 3,165,566 shares of the company traded hands, compared to its average volume of 28,177,184. iQIYI, Inc. Sponsored ADR has a 12 month low of $1.50 and a 12 month high of $3.37. The firm has a market capitalization of $1.74 billion, a price-to-earnings ratio of 45.14 and a beta of -0.14. The company has a debt-to-equity ratio of 0.61, a current ratio of 0.46 and a quick ratio of 0.46. The business has a 50 day moving average of $1.81 and a two-hundred day moving average of $1.97.

iQIYI (NASDAQ:IQ - Get Free Report) last announced its quarterly earnings results on Wednesday, May 21st. The company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.05 by ($0.02). iQIYI had a return on equity of 3.62% and a net margin of 1.02%. The company had revenue of $988.19 million during the quarter, compared to analysts' expectations of $7.10 billion. As a group, research analysts predict that iQIYI, Inc. Sponsored ADR will post 0.04 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen downgraded shares of iQIYI from a "hold" rating to a "sell" rating in a research report on Saturday, July 26th. Two investment analysts have rated the stock with a sell rating, six have given a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat.com, iQIYI currently has a consensus rating of "Hold" and an average target price of $2.39.

iQIYI Profile

iQIYI, Inc, together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content.