iQIYI (NASDAQ:IQ) Stock Price Down 4.5% - Should You Sell?

Key Points

• iQIYI shares fell 4.5% to approximately $0.98, with trading volume sharply below its average daily level.
• Analyst sentiment remains cautious: the consensus rating is “Hold”, with one Buy, four Holds and one Sell, while the average price target is $1.73. JPMorgan recently cut its target to $1.20, and Goldman Sachs set a $1.40 target.
• The company has a market capitalization of about $960 million and negative earnings, while institutional investors own 52.69% of its shares. iQIYI operates a China-based streaming platform offering subscription, advertising-supported and premium video services.

Shares of iQIYI, Inc. Sponsored ADR (NASDAQ:IQ - Get Free Report) dropped 4.5% during trading on Tuesday. The stock traded as low as $0.98 and last traded at $0.9840. Approximately 704,023 shares were traded during trading, a decline of 92% from the average daily volume of 8,730,039 shares. The stock had previously closed at $1.03.

Wall Street Analyst Weigh In

A number of research firms have recently commented on IQ. Zacks Research raised shares of iQIYI from a "strong sell" rating to a "hold" rating in a research report on Monday, July 20th. JPMorgan Chase & Co. lowered their target price on shares of iQIYI from $2.20 to $1.20 and set a "neutral" rating on the stock in a research note on Thursday, August 20th. Benchmark reiterated a "hold" rating on shares of iQIYI in a report on Wednesday, August 19th. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $1.40 price target on shares of iQIYI in a research report on Thursday, August 20th. Finally, Wall Street Zen upgraded iQIYI from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 22nd. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $1.73.

iQIYI Price Performance

The firm has a market cap of $960.09 million, a P/E ratio of -8.29 and a beta of 0.19. The stock's 50-day moving average is $1.11 and its 200-day moving average is $1.15. The company has a quick ratio of 0.45, a current ratio of 0.45 and a debt-to-equity ratio of 0.81.

Hedge Funds Weigh In On iQIYI

Several institutional investors and hedge funds have recently added to or reduced their stakes in IQ. Triata Capital Ltd bought a new stake in shares of iQIYI during the second quarter valued at approximately $1,152,419. Public Employees Retirement System of Ohio acquired a new stake in iQIYI during the second quarter worth $580,000. Squarepoint Ops LLC increased its holdings in iQIYI by 831.3% in the 2nd quarter. Squarepoint Ops LLC now owns 594,856 shares of the company's stock valued at $619,000 after buying an additional 530,983 shares during the period. Tidal Investments LLC bought a new stake in iQIYI in the 2nd quarter valued at $58,000. Finally, Bank of New York Mellon Corp raised its stake in shares of iQIYI by 4.4% in the 1st quarter. Bank of New York Mellon Corp now owns 534,118 shares of the company's stock valued at $721,000 after buying an additional 22,662 shares in the last quarter. 52.69% of the stock is currently owned by institutional investors.

iQIYI Company Profile

iQIYI, Inc is a China-based online entertainment company that operates a streaming video platform through its website and mobile applications. The company offers professionally produced and user-generated video content, including television dramas, films, variety programs, anime, sports and other entertainment programming.

iQIYI develops and distributes original programming while also licensing content from third-party producers and studios. Its services include advertising-supported viewing, subscription-based membership offerings and premium content features.

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