Hello Group (NASDAQ:MOMO) Reaches New 12-Month Low - Time to Sell?

Key Points

• Hello Group shares hit a new 52-week low, trading as low as $4.70 and recently changing hands near $4.76. The stock is below both its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but cautious, with ratings split between Buy, Hold and Sell; the consensus rating is “Hold” with an average price target of $9.05.
• Despite the share-price weakness, Hello Group exceeded quarterly earnings and revenue estimates, reporting EPS of $0.26 versus $0.22 expected and revenue of $365.91 million. However, revenue declined 5.1% year over year.

Hello Group Inc. Sponsored ADR (NASDAQ:MOMO - Get Free Report)'s stock price reached a new 52-week low during trading on Monday. The stock traded as low as $4.70 and last traded at $4.7570, with a volume of 1425 shares. The stock had previously closed at $4.72.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Weiss Ratings reissued a "sell (d+)" rating on shares of Hello Group in a research report on Monday, August 3rd. Wall Street Zen downgraded Hello Group from a "buy" rating to a "hold" rating in a report on Sunday, July 26th. One 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's stock. According to MarketBeat.com, Hello Group presently has an average rating of "Hold" and an average price target of $9.05.

Hello Group Trading Up 0.5%

The firm has a market capitalization of $510.42 million, a P/E ratio of 4.85 and a beta of 0.38. The stock has a 50 day simple moving average of $5.44 and a 200-day simple moving average of $5.77.

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

Institutional Trading of Hello Group

A number of hedge funds and other institutional investors have recently bought and sold shares of MOMO. Assenagon Asset Management S.A. bought a new position in shares of Hello Group during the 2nd quarter valued at approximately $6,176,000. Maven Securities LTD bought a new stake in Hello Group during the 2nd quarter worth approximately $833,000. Athos Capital Ltd purchased a new position in Hello Group during the fourth quarter valued at approximately $47,359,000. Public Employees Retirement System of Ohio bought a new position in shares of Hello Group in the second quarter worth approximately $1,087,000. Finally, BTG Pactual Asset Management US LLC raised its position in shares of Hello Group by 376.1% during the 2nd quarter. BTG Pactual Asset Management US LLC now owns 70,163 shares of the information services provider's stock valued at $407,000 after purchasing an additional 55,427 shares during the period. Hedge funds and other institutional investors own 50.96% of the company's stock.

Hello Group Company Profile

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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