Hello Group Sees Unusually Large Options Volume (NASDAQ:MOMO)

Key Points

• Hello Group’s options activity surged: Traders bought 5,864 call options, representing a 1,366% increase over the typical volume of 400 contracts.
• Analyst sentiment remains cautious: The stock has a consensus “Hold” rating and an average price target of $9.05, with one analyst each rating it Buy, Hold, and Sell.
• Shares remain near their yearly low: MOMO traded around $4.57, compared with a 52-week range of $4.47 to $7.25. Although quarterly EPS and revenue exceeded estimates, revenue declined 5.1% year over year.

Hello Group Inc. Sponsored ADR (NASDAQ:MOMO - Get Free Report) was the recipient of unusually large options trading activity on Thursday. Traders bought 5,864 call options on the stock. This is an increase of 1,366% compared to the typical volume of 400 call options.

Analyst Ratings Changes

Several equities research analysts recently weighed in on MOMO shares. Weiss Ratings lowered Hello Group from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, October 9th. Wall Street Zen cut Hello Group from a "buy" rating to a "hold" rating in a research report on Sunday, July 26th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $9.05.

Hello Group Price Performance

Shares of NASDAQ MOMO traded up $0.04 during midday trading on Thursday, reaching $4.57. 406,231 shares of the stock traded hands, compared to its average volume of 763,649. Hello Group has a one year low of $4.47 and a one year high of $7.25. The stock has a market capitalization of $491.03 million, a PE ratio of 4.66 and a beta of 0.38. The company's 50 day moving average is $5.13 and its 200 day moving average is $5.66.

Hello Group (NASDAQ:MOMO - Get Free Report) last issued its quarterly earnings data on Thursday, September 3rd. The information services provider reported $0.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.22 by $0.04. Hello Group had a return on equity of 10.43% and a net margin of 11.02%. The business had revenue of $365.91 million for the quarter, compared to the consensus estimate of $363.62 million. During the same period in the prior year, the business posted ($0.58) earnings per share. The company's quarterly revenue was down 5.1% compared to the same quarter last year.

Institutional Investors Weigh In On Hello Group

Several large investors have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP increased its holdings in Hello Group by 1.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,408,461 shares of the information services provider's stock worth $13,868,000 after purchasing an additional 37,306 shares during the period. Assenagon Asset Management S.A. acquired a new stake in shares of Hello Group in the 2nd quarter worth $6,176,000. Public Employees Retirement System of Ohio acquired a new position in shares of Hello Group during the second quarter valued at about $1,087,000. Wellington Management Group LLP lifted its stake in shares of Hello Group by 92.9% during the second quarter. Wellington Management Group LLP now owns 161,492 shares of the information services provider's stock worth $937,000 after buying an additional 77,773 shares during the period. Finally, Maven Securities LTD purchased a new stake in Hello Group during the 2nd quarter valued at about $833,000. 50.96% of the stock is owned by hedge funds and other institutional investors.

About Hello Group

Hello Group Inc, formerly known as Momo Inc, is a China-based mobile social networking and entertainment company. Founded in 2011, the company operates digital platforms that help users discover and interact with people based on location, interests and other social connections.

Its principal products include Momo, a social networking application that offers messaging, content sharing, live video and other interactive features, and Tantan, a dating and relationship-focused platform acquired by the company in 2018.

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