MINISO Group (NYSE:MNSO) Reaches New 52-Week Low - Here's Why

Key Points

• MINISO Group shares hit a new 52-week low, falling to as low as $12.29 and closing near $12.31 after a 4.4% decline. The move came with above-average trading volume of 451,323 shares.
• Analyst sentiment remains mixed but overall moderately positive: JPMorgan cut its price target from $26 to $16 while keeping an overweight rating, and the consensus rating is still Moderate Buy with a $21.73 price target.
• The company recently reported earnings below expectations, posting $0.06 EPS versus the $0.24 consensus, even though revenue came in slightly ahead of estimates at $825.04 million. Insiders also bought heavily in late May, with the CEO and VP each purchasing 1.95 million shares.

Shares of MINISO Group Holding Limited Unsponsored ADR (NYSE:MNSO - Get Free Report) hit a new 52-week low on Tuesday . The company traded as low as $12.29 and last traded at $12.3140, with a volume of 451323 shares. The stock had previously closed at $12.86.

Analyst Upgrades and Downgrades

MNSO has been the topic of a number of research analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of MINISO Group in a research note on Friday, March 27th. JPMorgan Chase & Co. lowered their price objective on shares of MINISO Group from $26.00 to $16.00 and set an "overweight" rating for the company in a research note on Friday, May 29th. Finally, Wall Street Zen raised shares of MINISO Group from a "hold" rating to a "buy" rating in a report on Saturday, May 30th. Three research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, MINISO Group presently has a consensus rating of "Moderate Buy" and a consensus price target of $21.73.

MINISO Group Trading Down 4.4%

The stock has a 50-day moving average of $14.44 and a 200 day moving average of $17.18. The stock has a market cap of $3.81 billion, a PE ratio of 13.08, a price-to-earnings-growth ratio of 1.24 and a beta of 0.08. The company has a quick ratio of 1.14, a current ratio of 1.53 and a debt-to-equity ratio of 0.76.

MINISO Group (NYSE:MNSO - Get Free Report) last issued its earnings results on Friday, May 15th. The company reported $0.06 EPS for the quarter, missing analysts' consensus estimates of $0.24 by ($0.18). The firm had revenue of $825.04 million during the quarter, compared to analysts' expectations of $805.60 million. MINISO Group had a net margin of 9.03% and a return on equity of 18.98%. As a group, sell-side analysts anticipate that MINISO Group Holding Limited Unsponsored ADR will post 1.47 earnings per share for the current year.

MINISO Group Dividend Announcement

The business also recently declared a dividend, which was paid on Monday, May 4th. Shareholders of record on Monday, April 20th were given a dividend of $0.3764 per share. This represents a yield of 479.0%. The ex-dividend date of this dividend was Monday, April 20th. MINISO Group's dividend payout ratio (DPR) is currently 77.66%.

Insider Activity

In related news, VP Yunyun (Alice) Yang bought 1,950,000 shares of the stock in a transaction dated Friday, May 29th. The shares were purchased at an average price of $3.28 per share, for a total transaction of $6,396,000.00. Following the completion of the purchase, the vice president directly owned 315,590,482 shares of the company's stock, valued at $1,035,136,780.96. This represents a 0.62% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Guofu Ye purchased 1,950,000 shares of MINISO Group stock in a transaction that occurred on Friday, May 29th. The shares were bought at an average price of $3.28 per share, with a total value of $6,396,000.00. Following the completion of the transaction, the chief executive officer owned 315,590,482 shares of the company's stock, valued at $1,035,136,780.96. This represents a 0.62% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders bought 4,200,000 shares of company stock valued at $13,797,000. Insiders own 73.50% of the company's stock.

Hedge Funds Weigh In On MINISO Group

Several large investors have recently made changes to their positions in the company. Royal Bank of Canada boosted its holdings in MINISO Group by 66.4% during the first quarter. Royal Bank of Canada now owns 26,928 shares of the company's stock worth $498,000 after buying an additional 10,747 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in MINISO Group by 1.6% in the first quarter. Goldman Sachs Group Inc. now owns 315,424 shares of the company's stock valued at $5,832,000 after buying an additional 5,086 shares in the last quarter. Creative Planning increased its holdings in MINISO Group by 45.1% in the second quarter. Creative Planning now owns 16,662 shares of the company's stock valued at $304,000 after buying an additional 5,177 shares in the last quarter. American Century Companies Inc. increased its holdings in MINISO Group by 0.4% in the second quarter. American Century Companies Inc. now owns 133,224 shares of the company's stock valued at $2,427,000 after buying an additional 595 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its holdings in MINISO Group by 37.6% in the second quarter. EverSource Wealth Advisors LLC now owns 2,223 shares of the company's stock valued at $41,000 after buying an additional 608 shares in the last quarter. 17.16% of the stock is currently owned by institutional investors and hedge funds.

About MINISO Group

MINISO Group NYSE: MNSO is a global retailer specializing in lifestyle and consumer goods. Since its founding in 2013, the company has focused on offering affordable, design-driven products across a broad range of categories. MINISO's stores feature a clean, minimalist layout and emphasize a “fast fashion” inventory model designed to turn over goods quickly and respond to emerging trends.

The company's product mix spans household items, kitchenware, cosmetics and personal care, stationery, toys, digital accessories, apparel and seasonal items.

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