Hello Group (NASDAQ:MOMO) Hits New 1-Year Low - What's Next?

Key Points

• Hello Group shares fell to a new 52-week low of $5.04, below their 50-day and 200-day moving averages of $5.80 and $5.94, respectively.
• Analyst sentiment is mixed, with ratings ranging from buy to sell; the overall consensus is “Hold” with a target price of $9.05.
• Despite a 5.1% year-over-year revenue decline to $365.91 million, Hello Group beat quarterly EPS estimates, reporting $0.26 versus the expected $0.22. Institutional investors own about 50.96% of the company.

Hello Group Inc. Sponsored ADR (NASDAQ:MOMO - Get Free Report) reached a new 52-week low on Thursday . The stock traded as low as $5.04 and last traded at $5.0450, with a volume of 352056 shares changing hands. The stock had previously closed at $5.18.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Wall Street Zen cut shares of Hello Group from a "buy" rating to a "hold" rating in a research report on Sunday, July 26th. Benchmark restated a "buy" rating on shares of Hello Group in a report on Thursday, June 4th. UBS Group set a $10.00 target price on shares of Hello Group in a research note on Thursday, June 4th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Hello Group in a research note on Monday, August 3rd. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $9.05.

Hello Group Stock Performance

The company has a 50 day moving average of $5.80 and a 200 day moving average of $5.94. The stock has a market capitalization of $543.77 million, a price-to-earnings ratio of 5.15 and a beta of 0.45.

Hello Group (NASDAQ:MOMO - Get Free Report) last posted its quarterly earnings results 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 company had revenue of $365.91 million for the quarter, compared to analyst estimates of $363.62 million. During the same quarter last year, the company earned ($0.58) EPS. Hello Group's revenue for the quarter was down 5.1% compared to the same quarter last year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in MOMO. OMERS ADMINISTRATION Corp increased its position in shares of Hello Group by 13.3% in the 4th quarter. OMERS ADMINISTRATION Corp now owns 17,000 shares of the information services provider's stock valued at $111,000 after purchasing an additional 2,000 shares during the last quarter. Cetera Investment Advisers grew its stake in shares of Hello Group by 3.2% during the first quarter. Cetera Investment Advisers now owns 67,726 shares of the information services provider's stock worth $390,000 after purchasing an additional 2,096 shares in the last quarter. ABN Amro Investment Solutions grew its stake in shares of Hello Group by 9.6% during the fourth quarter. ABN Amro Investment Solutions now owns 26,300 shares of the information services provider's stock worth $172,000 after purchasing an additional 2,300 shares in the last quarter. QRG Capital Management Inc. increased its holdings in Hello Group by 12.1% in the first quarter. QRG Capital Management Inc. now owns 21,964 shares of the information services provider's stock valued at $127,000 after buying an additional 2,372 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its holdings in Hello Group by 249.8% in the first quarter. EverSource Wealth Advisors LLC now owns 4,439 shares of the information services provider's stock valued at $26,000 after buying an additional 3,170 shares during the last quarter. Institutional investors and hedge funds own 50.96% of the company's stock.

About Hello Group

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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