Vipshop (NYSE:VIPS) Trading Down 4.9% on Analyst Downgrade

Key Points

• Vipshop shares fell 4.9% to about $13.39 after Nomura downgraded the stock from “buy” to “neutral.” Trading volume was also 65% below the average session volume.
• Analyst sentiment is mixed, with an overall “Hold” rating and an average price target of $20.18; ratings range from Strong Buy to Sell.
• Vipshop’s latest quarterly EPS of $0.12 missed the $0.59 consensus estimate, although revenue matched expectations at $3.64 billion. Institutional investors own 48.82% of the company.

Vipshop Holdings Limited (NYSE:VIPS - Get Free Report) shares fell 4.9% during mid-day trading on Thursday after Nomura downgraded the stock from a buy rating to a neutral rating. The stock traded as low as $13.48 and last traded at $13.3880. 802,517 shares traded hands during mid-day trading, a decline of 65% from the average session volume of 2,318,202 shares. The stock had previously closed at $14.08.

Several other analysts have also weighed in on VIPS. Bank of America reaffirmed an "underperform" rating on shares of Vipshop in a research note on Friday, May 29th. Morgan Stanley set a $16.00 target price on Vipshop in a research note on Wednesday. UBS Group set a $18.50 target price on shares of Vipshop and gave the stock a "buy" rating in a report on Friday, May 22nd. Benchmark reaffirmed a "hold" rating on shares of Vipshop in a report on Friday, May 22nd. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Vipshop in a research report on Friday, August 21st. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $20.18.

Hedge Funds Weigh In On Vipshop

Several large investors have recently bought and sold shares of the company. California State Teachers Retirement System boosted its stake in shares of Vipshop by 841.5% during the second quarter. California State Teachers Retirement System now owns 1,432,544 shares of the technology company's stock valued at $18,996,000 after purchasing an additional 1,280,383 shares in the last quarter. Step Capital Management Pte. Ltd. increased its stake in shares of Vipshop by 90.8% in the second quarter. Step Capital Management Pte. Ltd. now owns 252,141 shares of the technology company's stock valued at $3,343,000 after buying an additional 120,000 shares during the period. Nykredit A S bought a new position in Vipshop in the 2nd quarter valued at approximately $2,349,000. BTG Pactual Asset Management US LLC bought a new position in Vipshop in the 2nd quarter valued at approximately $355,000. Finally, Wellington Management Group LLP boosted its position in Vipshop by 15.0% during the 2nd quarter. Wellington Management Group LLP now owns 702,863 shares of the technology company's stock worth $9,320,000 after buying an additional 91,892 shares during the period. 48.82% of the stock is currently owned by institutional investors.

Vipshop Stock Performance

The stock has a market capitalization of $6.41 billion, a P/E ratio of 4.42, a price-to-earnings-growth ratio of 1.44 and a beta of 0.67. The stock's fifty day simple moving average is $14.24 and its two-hundred day simple moving average is $14.96.

Vipshop (NYSE:VIPS - Get Free Report) last released its quarterly earnings results on Tuesday, August 25th. The technology company reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.59 by ($0.47). The business had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.64 billion. Vipshop had a net margin of 9.88% and a return on equity of 13.03%. As a group, analysts expect that Vipshop Holdings Limited will post 2.24 earnings per share for the current fiscal year.

Vipshop Company Profile

Vipshop Holdings Limited NYSE: VIPS is a leading online discount retailer in China, offering high-quality branded products at competitive prices through a time-limited, flash-sales model. The company provides consumers with access to a rotating selection of merchandise, combining the excitement of limited-time offers with curated brand partnerships to drive customer engagement and loyalty.

Vipshop’s platform features a diverse range of product categories, including apparel, footwear, cosmetics, home furnishings, digital electronics and other lifestyle goods.

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