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

Key Points

• Shares gapped down: MOMO opened at $5.90 after a $6.17 close and last traded near $5.945 with about 41,700 shares changing hands; market cap is roughly $705M and the 50-/200-day moving averages are $6.26/$6.69.
• Analyst consensus is "Hold": Two analysts rate the stock a Hold with an average price target of $8.10; Weiss Ratings reiterated a Hold (C-) and Zacks upgraded the stock to Hold from Strong Sell.
• Dividend disclosed: Hello Group announced a $0.28 annual dividend payable April 30 to shareholders of record April 10 (ex-dividend April 10), with MarketBeat reporting a stated yield of 472.0%.

Shares of Hello Group Inc. Sponsored ADR (NASDAQ:MOMO - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $6.17, but opened at $5.90. Hello Group shares last traded at $5.9450, with a volume of 41,731 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Weiss Ratings reiterated a "hold (c-)" rating on shares of Hello Group in a research note on Friday, March 27th. Zacks Research upgraded shares of Hello Group from a "strong sell" rating to a "hold" rating in a research note on Monday, December 15th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $8.10.

Hello Group Stock Performance

The business's 50-day moving average price is $6.26 and its 200 day moving average price is $6.69. The company has a market cap of $705.42 million, a P/E ratio of 8.83 and a beta of 0.42.

Hello Group Cuts Dividend

The company also recently disclosed an annual dividend, which will be paid on Thursday, April 30th. Stockholders of record on Friday, April 10th will be given a $0.28 dividend. This represents a dividend yield of 472.0%. The ex-dividend date of this dividend is Friday, April 10th.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Goldman Sachs Group Inc. grew its position in shares of Hello Group by 7.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 8,127,428 shares of the information services provider's stock valued at $51,284,000 after acquiring an additional 546,048 shares during the period. Athos Capital Ltd bought a new stake in shares of Hello Group during the 4th quarter worth about $47,359,000. LSV Asset Management boosted its holdings in shares of Hello Group by 21.3% during the 4th quarter. LSV Asset Management now owns 3,565,971 shares of the information services provider's stock worth $23,357,000 after buying an additional 626,152 shares during the period. Causeway Capital Management LLC boosted its holdings in shares of Hello Group by 19.1% during the 3rd quarter. Causeway Capital Management LLC now owns 2,794,347 shares of the information services provider's stock worth $20,734,000 after buying an additional 448,123 shares during the period. Finally, Norges Bank bought a new stake in shares of Hello Group during the 4th quarter worth about $9,146,000. Institutional investors own 50.96% of the company's stock.

Hello Group Company Profile

Hello Group Inc NASDAQ: MOMO is a China-based technology company specializing in mobile social networking and interactive entertainment. Its flagship product, the Momo app, offers location-based social discovery services that enable users to find and connect with new friends based on shared interests and geographic proximity. The platform integrates instant messaging, group chat, and content-sharing features, while also providing premium subscriptions and in-app purchases such as virtual gifts and sticker packs.

In addition to Momo, Hello Group's portfolio includes Tantan, a dating-focused social app designed to help users build meaningful relationships through profile matching and interest-driven swiping.

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