Hello Group (NASDAQ:MOMO) Shares Gap Down - Should You Sell?

Key Points

• Hello Group shares gapped down from a previous close of $8.12 to an opening price of $7.10 before last trading at $7.97, with substantial trading volume of over 1.3 million shares.
• Wall Street Zen upgraded Hello Group's rating from "hold" to "buy," while the current consensus rating is "hold" with an average price target of $10.00.
• Institutional investors hold 50.96% of Hello Group's stock, with several firms increasing their stakes recently, indicating growing interest despite the stock's performance.

Hello Group Inc. Sponsored ADR (NASDAQ:MOMO - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $8.12, but opened at $7.10. Hello Group shares last traded at $7.97, with a volume of 1,376,641 shares changing hands.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen downgraded Hello Group from a "buy" rating to a "hold" rating in a research note on Saturday. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $10.00.

Hello Group Stock Down 0.7%

The stock has a 50 day simple moving average of $8.32 and a 200 day simple moving average of $7.27. The company has a market capitalization of $901.27 million, a price-to-earnings ratio of 8.40 and a beta of 0.38.

Institutional Investors Weigh In On Hello Group

A number of hedge funds have recently made changes to their positions in MOMO. Northern Trust Corp raised its holdings in shares of Hello Group by 53.3% during the fourth quarter. Northern Trust Corp now owns 390,686 shares of the information services provider's stock valued at $3,012,000 after buying an additional 135,879 shares during the last quarter. Cetera Investment Advisers grew its position in Hello Group by 3.6% in the fourth quarter. Cetera Investment Advisers now owns 64,877 shares of the information services provider's stock worth $500,000 after buying an additional 2,280 shares during the last quarter. Millennium Management LLC grew its position in Hello Group by 1,590.1% in the fourth quarter. Millennium Management LLC now owns 174,536 shares of the information services provider's stock worth $1,346,000 after buying an additional 164,209 shares during the last quarter. Vident Advisory LLC grew its position in Hello Group by 34.0% during the 4th quarter. Vident Advisory LLC now owns 15,803 shares of the information services provider's stock worth $122,000 after purchasing an additional 4,009 shares in the last quarter. Finally, QRG Capital Management Inc. grew its position in Hello Group by 14.2% during the 1st quarter. QRG Capital Management Inc. now owns 24,959 shares of the information services provider's stock worth $157,000 after purchasing an additional 3,098 shares in the last quarter. Institutional investors own 50.96% of the company's stock.

About Hello Group

Hello Group Inc provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names.