WEBTOON Entertainment (NASDAQ:WBTN) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• Trading volume surged 238% to 1.22 million shares, while WEBTOON’s stock remained essentially flat near $10.45.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with an average price target of $10.88; targets range from $10 at JPMorgan to $12 at Evercore.
• WEBTOON beat quarterly EPS expectations at $0.04 versus an estimated loss of $0.07, but revenue fell 2.8% year over year to $338.47 million and the company continues to report a negative net margin.

Shares of WEBTOON Entertainment Inc. (NASDAQ:WBTN - Get Free Report) saw strong trading volume on Tuesday. 1,223,535 shares changed hands during mid-day trading, an increase of 238% from the previous session's volume of 362,460 shares. The stock last traded at $10.4540 and had previously closed at $10.46.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of WEBTOON Entertainment in a research note on Friday, July 17th. JPMorgan Chase & Co. cut their target price on shares of WEBTOON Entertainment from $11.00 to $10.00 and set a "neutral" rating for the company in a research note on Tuesday, August 11th. Evercore reiterated an "outperform" rating and set a $12.00 price target on shares of WEBTOON Entertainment in a report on Tuesday, August 11th. Finally, Wall Street Zen upgraded WEBTOON Entertainment from a "strong sell" rating to a "sell" rating in a research note on Monday, August 31st. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, WEBTOON Entertainment has an average rating of "Hold" and a consensus target price of $10.88.

WEBTOON Entertainment Trading Up 0.1%

The company has a market cap of $1.42 billion, a P/E ratio of -3.99 and a beta of 2.57. The company has a 50 day moving average price of $9.87 and a 200-day moving average price of $10.75.

WEBTOON Entertainment (NASDAQ:WBTN - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.11. WEBTOON Entertainment had a negative net margin of 25.09% and a positive return on equity of 2.10%. The company had revenue of $338.47 million during the quarter, compared to the consensus estimate of $339.89 million. During the same period in the prior year, the business earned $0.07 earnings per share. The company's revenue for the quarter was down 2.8% compared to the same quarter last year. Equities analysts expect that WEBTOON Entertainment Inc. will post -0.12 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Rockefeller Capital Management L.P. purchased a new stake in WEBTOON Entertainment during the fourth quarter worth about $27,000. Parallel Advisors LLC boosted its position in shares of WEBTOON Entertainment by 620.4% in the first quarter. Parallel Advisors LLC now owns 4,445 shares of the company's stock valued at $41,000 after acquiring an additional 3,828 shares during the period. Generali Investments Towarzystwo Funduszy Inwestycyjnych boosted its holdings in WEBTOON Entertainment by 13.3% in the 1st quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 8,500 shares of the company's stock valued at $78,000 after purchasing an additional 1,000 shares during the period. The Manufacturers Life Insurance Company purchased a new position in WEBTOON Entertainment during the second quarter worth about $117,000. Finally, Abel Hall LLC purchased a new position in shares of WEBTOON Entertainment during the first quarter worth about $110,000.

About WEBTOON Entertainment

WEBTOON Entertainment Inc is a global digital entertainment company that operates platforms for webcomics, web novels and other serialized storytelling content. Its flagship WEBTOON platform connects creators with readers through mobile and online services, offering a broad catalog of original and user-generated series across genres such as romance, fantasy, drama, action and comedy.

The company's business includes digital content distribution, advertising, paid content and intellectual-property licensing.

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