Hello Group (NASDAQ:MOMO) Sets New 1-Year Low - Should You Sell?

Key Points

• Hello Group shares fell to a new 52-week low of $4.51, trading 2.6% lower at about $4.53. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans neutral: the stock has a consensus “Hold” rating and an average price target of $9.05, while Weiss Ratings and Wall Street Zen recently downgraded their views.
• Despite the stock decline, Hello Group exceeded quarterly earnings and revenue estimates, reporting $0.26 EPS and $365.91 million in revenue; 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 Wednesday. The company traded as low as $4.51 and last traded at $4.53, with a volume of 686,268 shares traded. The stock had previously closed at $4.65.

Analyst Ratings Changes

Several analysts have commented on the stock. Weiss Ratings downgraded shares of Hello Group from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, October 9th. Wall Street Zen downgraded shares of 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 given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $9.05.

Hello Group Trading Down 2.6%

The company's fifty day moving average is $5.13 and its 200-day moving average is $5.66. The firm has a market capitalization of $487.29 million, a P/E ratio of 4.62 and a beta of 0.38.

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

Institutional Trading of Hello Group

Several hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP boosted its position in shares of Hello Group by 1.6% in the first quarter. Dimensional Fund Advisors LP now owns 2,408,461 shares of the information services provider's stock valued at $13,868,000 after acquiring an additional 37,306 shares during the period. Assenagon Asset Management S.A. acquired a new stake in shares of Hello Group in the second quarter worth $6,176,000. Public Employees Retirement System of Ohio acquired a new stake in shares of Hello Group in the second quarter worth $1,087,000. Wellington Management Group LLP increased its position in 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 acquiring an additional 77,773 shares during the period. Finally, Maven Securities LTD bought a new position in Hello Group during the second quarter worth $833,000. Institutional investors own 50.96% of the company's stock.

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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