Hello Group (NASDAQ:MOMO) Shares Cross Below 200-Day Moving Average - Here's Why

Key Points

• Hello Group shares fell below their 200-day moving average, trading as low as $4.71 versus the $5.70 long-term average, signaling continued technical weakness.
• Analyst sentiment is mixed but leans neutral: the stock has a consensus “Hold” rating and a $9.05 average price target, with ratings split among Buy, Hold, and Sell.
• Despite a quarterly earnings beat—$0.26 EPS versus the $0.22 estimate—revenue declined 5.1% year over year to $365.91 million, while institutional investors own about 50.96% of the company.

Hello Group Inc. Sponsored ADR (NASDAQ:MOMO - Get Free Report)'s share price crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $5.70 and traded as low as $4.71. Hello Group shares last traded at $4.71, with a volume of 422,964 shares traded.

Wall Street Analyst Weigh In

Several analysts recently commented on MOMO shares. Wall Street Zen lowered Hello Group from a "buy" rating to a "hold" rating in a research note on Sunday, July 26th. Weiss Ratings cut Hello Group from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, October 9th. 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's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $9.05.

Hello Group Trading Down 0.8%

The business's fifty day simple moving average is $5.25 and its 200 day simple moving average is $5.70. The stock has a market cap of $506.65 million, a P/E ratio of 4.81 and a beta of 0.38.

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 for the quarter, beating the consensus estimate 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 analysts' expectations of $363.62 million. During the same quarter last year, the company posted ($0.58) EPS. The company's quarterly revenue was down 5.1% compared to the same quarter last year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of MOMO. Cetera Investment Advisers boosted its holdings in 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 buying an additional 2,096 shares during the last quarter. QRG Capital Management Inc. grew its position in shares of Hello Group by 12.1% during the 1st quarter. QRG Capital Management Inc. now owns 21,964 shares of the information services provider's stock worth $127,000 after buying an additional 2,372 shares during the period. EverSource Wealth Advisors LLC grew its position in shares of Hello Group by 249.8% during the 1st quarter. EverSource Wealth Advisors LLC now owns 4,439 shares of the information services provider's stock worth $26,000 after buying an additional 3,170 shares during the period. Ramsey Quantitative Systems bought a new stake in shares of Hello Group in the 2nd quarter valued at about $26,000. Finally, Tidal Investments LLC bought a new stake in shares of Hello Group in the 2nd quarter valued at about $59,000. 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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