MINISO Group (NYSE:MNSO) Reaches New 1-Year Low Following Weak Earnings

Key Points

• MINISO shares fell to a new 52-week low of $10.37 after the company reported weaker-than-expected earnings, including quarterly EPS of $0.26 and revenue of $855.25 million.
• Analyst sentiment is mixed: the consensus rating is “Hold” with an average price target of $19.50, while individual firms have issued ratings ranging from “Sell” to “Buy.”
• Insiders and several institutional investors have increased their holdings; insiders own 73.50% of the stock, while institutional investors and hedge funds hold 17.16%.

MINISO Group Holding Limited Unsponsored ADR (NYSE:MNSO - Get Free Report)'s stock price reached a new 52-week low on Friday following a weaker than expected earnings announcement. The company traded as low as $10.37 and last traded at $10.37, with a volume of 255146 shares. The stock had previously closed at $10.81.

The company reported $0.26 EPS for the quarter. MINISO Group had a return on equity of 18.98% and a net margin of 9.03%.The firm had revenue of $855.25 million for the quarter.

Analyst Ratings Changes

MNSO has been the topic of several analyst reports. Weiss Ratings cut MINISO Group from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, June 25th. Zacks Research upgraded shares of MINISO Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 28th. JPMorgan Chase & Co. reduced their price objective on shares of MINISO Group from $26.00 to $16.00 and set an "overweight" rating on the stock in a research note on Friday, May 29th. Finally, Wall Street Zen upgraded shares of MINISO Group from a "hold" rating to a "buy" rating in a research report on Saturday, May 30th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $19.50.

Insider Activity

In other MINISO Group news, CEO Guofu Ye bought 150,000 shares of the stock in a transaction on Monday, June 1st. The stock was acquired at an average cost of $3.35 per share, for a total transaction of $502,500.00. Following the completion of the acquisition, the chief executive officer owned 315,740,482 shares in the company, valued at $1,057,730,614.70. This trade represents a 0.05% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, VP Yunyun (Alice) Yang purchased 150,000 shares of MINISO Group stock in a transaction on Monday, June 1st. The stock was bought at an average price of $3.35 per share, with a total value of $502,500.00. Following the completion of the acquisition, the vice president directly owned 315,740,482 shares of the company's stock, valued at approximately $1,057,730,614.70. This trade represents a 0.05% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 73.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On MINISO Group

A number of hedge funds have recently added to or reduced their stakes in MNSO. Serenity Capital Management PTE. LTD. raised its position in shares of MINISO Group by 74.9% during the fourth quarter. Serenity Capital Management PTE. LTD. now owns 2,024,455 shares of the company's stock worth $37,959,000 after purchasing an additional 866,793 shares during the period. Millennium Management LLC increased its stake in MINISO Group by 167.5% during the 3rd quarter. Millennium Management LLC now owns 971,884 shares of the company's stock valued at $21,867,000 after purchasing an additional 608,544 shares in the last quarter. Tiger Pacific Capital LP bought a new stake in MINISO Group during the 3rd quarter valued at $6,300,000. Marshall Wace LLP raised its holdings in MINISO Group by 15.8% during the fourth quarter. Marshall Wace LLP now owns 1,981,202 shares of the company's stock worth $37,148,000 after buying an additional 270,765 shares during the last quarter. Finally, Hsbc Holdings PLC lifted its stake in shares of MINISO Group by 243.5% in the first quarter. Hsbc Holdings PLC now owns 298,482 shares of the company's stock valued at $4,844,000 after buying an additional 211,587 shares in the last quarter. Institutional investors and hedge funds own 17.16% of the company's stock.

MINISO Group Price Performance

The stock has a market capitalization of $3.21 billion, a P/E ratio of 11.03, a price-to-earnings-growth ratio of 1.42 and a beta of 0.11. The business's 50 day simple moving average is $11.94 and its two-hundred day simple moving average is $14.39. The company has a quick ratio of 1.14, a current ratio of 1.53 and a debt-to-equity ratio of 0.76.

About MINISO Group

MINISO Group NYSE: MNSO is a global retailer specializing in lifestyle and consumer goods. Since its founding in 2013, the company has focused on offering affordable, design-driven products across a broad range of categories. MINISO's stores feature a clean, minimalist layout and emphasize a “fast fashion” inventory model designed to turn over goods quickly and respond to emerging trends.

The company's product mix spans household items, kitchenware, cosmetics and personal care, stationery, toys, digital accessories, apparel and seasonal items.

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