iQIYI (NASDAQ:IQ) Shares Down 7.9% - Time to Sell?

Key Points

• iQIYI shares fell 7.9% to about $1.23, with trading volume significantly below its average. The stock has a market capitalization of approximately $1.17 billion.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold”, with a $2.55 average price target; recent actions included sell, hold, and an upgrade from strong sell to hold.
• The company slightly beat quarterly EPS estimates at a loss of $0.02 per share, but revenue of $925.4 million came in below expectations and iQIYI continues to report negative profitability metrics.

Shares of iQIYI, Inc. Sponsored ADR (NASDAQ:IQ - Get Free Report) were down 7.9% on Tuesday . The stock traded as low as $1.24 and last traded at $1.2250. 2,048,480 shares were traded during mid-day trading, a decline of 76% from the average daily volume of 8,569,120 shares. The stock had previously closed at $1.33.

Analyst Ratings Changes

Several analysts have recently issued reports on the company. Weiss Ratings reiterated a "sell (d)" rating on shares of iQIYI in a research note on Wednesday, June 24th. Wall Street Zen downgraded iQIYI from a "hold" rating to a "sell" rating in a research report on Sunday, April 26th. Benchmark reissued a "hold" rating on shares of iQIYI in a research report on Tuesday, May 19th. Finally, Zacks Research raised iQIYI from a "strong sell" rating to a "hold" rating in a report on Monday, July 20th. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $2.55.

iQIYI Trading Down 8.6%

The company has a quick ratio of 0.45, a current ratio of 0.45 and a debt-to-equity ratio of 0.79. The business's fifty day moving average is $1.16 and its two-hundred day moving average is $1.32. The firm has a market cap of $1.17 billion, a price-to-earnings ratio of -12.12 and a beta of 0.19.

iQIYI (NASDAQ:IQ - Get Free Report) last announced its quarterly earnings data on Tuesday, August 18th. The company reported ($0.02) EPS for the quarter, beating analysts' consensus estimates of ($0.03) by $0.01. The firm had revenue of $925.39 million for the quarter, compared to analyst estimates of $933.55 million. iQIYI had a negative return on equity of 4.72% and a negative net margin of 2.61%. Equities analysts anticipate that iQIYI, Inc. Sponsored ADR will post -0.03 earnings per share for the current fiscal year.

Institutional Trading of iQIYI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in IQ. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in iQIYI by 393.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,152,263 shares of the company's stock worth $4,864,000 after purchasing an additional 1,716,011 shares during the last quarter. Public Employees Retirement System of Ohio boosted its stake in iQIYI by 1.6% in the third quarter. Public Employees Retirement System of Ohio now owns 432,300 shares of the company's stock valued at $1,107,000 after acquiring an additional 6,900 shares during the last quarter. Catalyst Funds Management Pty Ltd bought a new position in shares of iQIYI in the 4th quarter worth $1,205,000. Parallel Advisors LLC boosted its holdings in iQIYI by 20.8% during the fourth quarter. Parallel Advisors LLC now owns 29,472 shares of the company's stock worth $57,000 after buying an additional 5,077 shares during the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC acquired a new position in iQIYI during the fourth quarter valued at approximately $8,488,000. 52.69% of the stock is currently owned by institutional investors and hedge funds.

iQIYI Company Profile

iQIYI, Inc is a leading online entertainment service provider headquartered in Beijing, China, offering a comprehensive portfolio of streaming video content across multiple genres. The company operates a subscription-based video-on-demand (SVOD) platform, complemented by advertising-supported content (AVOD) and pay-per-view offerings. Its digital library encompasses original series, feature films, variety shows, animation and documentaries, catering to diverse demographic segments and viewer preferences.

Originally launched by Baidu in 2010 as an online video site, iQIYI was formally rebranded in early 2012 and has since expanded its footprint beyond China's domestic market.

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