MINISO Group (NYSE:MNSO) Shares Gap Up - What's Next?

Key Points

• MINISO Group shares gapped up before trading, opening at $12.41 after closing at $11.53 and last trading around $12.72, up about 9.9% on the day.
• Analyst sentiment remains mixed: recent moves included downgrades from Weiss Ratings and Zacks, while Wall Street Zen upgraded the stock and JPMorgan trimmed its price target to $16 from $26. The consensus rating is currently Hold with an average price target of $21.73.
• The company’s latest earnings missed EPS estimates at $0.07 versus $0.24 expected, though revenue came in above estimates at $825.04 million. Insider buying was notable, with the CEO and VP each purchasing 150,000 shares, and insiders now own 73.5% of the company.

MINISO Group Holding Limited Unsponsored ADR (NYSE:MNSO - Get Free Report)'s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $11.53, but opened at $12.41. MINISO Group shares last traded at $12.7240, with a volume of 195,155 shares traded.

Analysts Set New Price Targets

Several brokerages recently issued reports on MNSO. Weiss Ratings cut shares of MINISO Group from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, June 25th. Wall Street Zen upgraded shares of MINISO Group from a "hold" rating to a "buy" rating in a report on Saturday, May 30th. JPMorgan Chase & Co. cut their price objective on MINISO Group from $26.00 to $16.00 and set an "overweight" rating on the stock in a research report on Friday, May 29th. Finally, Zacks Research downgraded MINISO Group from a "hold" rating to a "strong sell" rating in a report on Monday, June 15th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $21.73.

MINISO Group Trading Up 9.9%

The stock's fifty day moving average price is $12.84 and its 200 day moving average price is $16.01. The stock has a market cap of $3.93 billion, a P/E ratio of 13.42, a PEG ratio of 1.42 and a beta of 0.10. The company has a current ratio of 1.53, a quick ratio of 1.14 and a debt-to-equity ratio of 0.76.

MINISO Group (NYSE:MNSO - Get Free Report) last issued its quarterly earnings results on Friday, May 15th. The company reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.24 by ($0.17). MINISO Group had a return on equity of 18.98% and a net margin of 9.03%.The business had revenue of $825.04 million during the quarter, compared to the consensus estimate of $805.60 million. Equities research analysts expect that MINISO Group Holding Limited Unsponsored ADR will post 1.12 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Guofu Ye purchased 150,000 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were bought at an average price of $3.35 per share, for a total transaction of $502,500.00. Following the purchase, the chief executive officer directly owned 315,740,482 shares of the company's stock, valued at approximately $1,057,730,614.70. This represents a 0.05% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Yunyun (Alice) Yang purchased 150,000 shares of MINISO Group stock in a transaction dated Monday, June 1st. The shares were bought at an average price of $3.35 per share, with a total value of $502,500.00. Following the completion of the acquisition, the vice president directly owned 315,740,482 shares of the company's stock, valued at approximately $1,057,730,614.70. This represents a 0.05% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders bought 4,200,000 shares of company stock worth $13,797,000. Insiders own 73.50% of the company's stock.

Hedge Funds Weigh In On MINISO Group

A number of hedge funds have recently bought and sold shares of MNSO. Serenity Capital Management PTE. LTD. increased its position in MINISO Group by 74.9% in the fourth quarter. Serenity Capital Management PTE. LTD. now owns 2,024,455 shares of the company's stock worth $37,959,000 after buying an additional 866,793 shares in the last quarter. Millennium Management LLC lifted its position in shares of MINISO Group by 167.5% during the 3rd quarter. Millennium Management LLC now owns 971,884 shares of the company's stock valued at $21,867,000 after buying an additional 608,544 shares in the last quarter. Tiger Pacific Capital LP purchased a new position in shares of MINISO Group during the 3rd quarter valued at about $6,300,000. Marshall Wace LLP grew its stake in shares of MINISO Group by 15.8% during the 4th quarter. Marshall Wace LLP now owns 1,981,202 shares of the company's stock valued at $37,148,000 after acquiring an additional 270,765 shares during the period. Finally, Hsbc Holdings PLC increased its holdings in MINISO Group by 243.5% in the 1st quarter. Hsbc Holdings PLC now owns 298,482 shares of the company's stock worth $4,844,000 after acquiring an additional 211,587 shares in the last quarter. Hedge funds and other institutional investors own 17.16% of the company's stock.

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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