Hello Group (NASDAQ:MOMO) Sees Large Volume Increase - Still a Buy?

Key Points

• Hello Group shares rose 2.9% to $4.715 amid unusually high trading volume, with 1.25 million shares changing hands—63% above the prior session.
• Analyst sentiment is mixed, with one Buy, one Hold, and one Sell rating; the consensus is Hold with a $9.05 target price.
• The company beat quarterly earnings expectations with EPS of $0.26 versus $0.22 estimated and revenue of $365.91 million, though revenue declined 5.1% year over year.

Shares of Hello Group Inc. Sponsored ADR (NASDAQ:MOMO - Get Free Report) saw unusually-high trading volume on Tuesday. 1,248,917 shares traded hands during mid-day trading, an increase of 63% from the previous session's volume of 766,432 shares. The stock last traded at $4.7150 and had previously closed at $4.64.

Analyst Ratings Changes

A number of research firms recently commented on MOMO. Wall Street Zen cut shares of Hello Group from a "buy" rating to a "hold" rating in a research note on Sunday, July 26th. Weiss Ratings reissued a "sell (d+)" rating on shares of Hello Group in a research note on Monday, August 3rd. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $9.05.

Hello Group Trading Up 2.9%

The stock has a 50-day moving average price of $5.41 and a two-hundred day moving average price of $5.76. The stock has a market cap of $513.65 million, a price-to-earnings ratio of 4.86 and a beta of 0.38.

Hello Group (NASDAQ:MOMO - Get Free Report) last issued its earnings results on Thursday, September 3rd. The information services provider reported $0.26 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 firm had revenue of $365.91 million for the quarter, compared to analyst estimates of $363.62 million. During the same quarter in the prior year, the firm earned ($0.58) earnings per share. Hello Group's revenue for the quarter was down 5.1% on a year-over-year basis.

Hedge Funds Weigh In On Hello Group

A number of institutional investors have recently bought and sold shares of the company. Tidal Investments LLC purchased a new stake in Hello Group in the second quarter valued at approximately $59,000. WINTON GROUP Ltd purchased a new stake in Hello Group during the 2nd quarter worth about $116,000. Maven Securities LTD acquired a new stake in Hello Group during the second quarter worth approximately $833,000. NewEdge Advisors LLC boosted its stake in Hello Group by 2,241,800.0% in the second quarter. NewEdge Advisors LLC now owns 22,419 shares of the information services provider's stock valued at $130,000 after acquiring an additional 22,418 shares in the last quarter. Finally, BTG Pactual Asset Management US LLC grew its stake in 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 worth $407,000 after buying an additional 55,427 shares during the last quarter. 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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