WEBTOON Entertainment (NASDAQ:WBTN) Stock Price Down 3.8% - Time to Sell?

Key Points

• WEBTOON shares fell 3.8% to about $9.23, trading below both the 50-day ($10.17) and 200-day ($10.78) moving averages on significantly lower-than-average volume.
• Analyst sentiment is mixed but centers on a “Hold” consensus, with an average price target of $13.70. JPMorgan lowered its target to $10, while Evercore maintained an outperform rating with a $12 target; other ratings included “strong sell” and “sell.”
• The company beat quarterly EPS estimates by reporting $0.04 versus expectations of a $0.07 loss, but revenue of $338.47 million declined 2.8% year over year and net margin remained negative at 25.09%.

Shares of WEBTOON Entertainment Inc. (NASDAQ:WBTN - Get Free Report) were down 3.8% during trading on Tuesday . The stock traded as low as $9.15 and last traded at $9.2260. 78,855 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 349,343 shares. The stock had previously closed at $9.59.

Analysts Set New Price Targets

A number of analysts recently issued reports on WBTN shares. Wall Street Zen downgraded shares of WEBTOON Entertainment from a "sell" rating to a "strong sell" rating in a report on Sunday. Evercore reissued an "outperform" rating and issued a $12.00 price objective on shares of WEBTOON Entertainment in a research note on Tuesday, August 11th. JPMorgan Chase & Co. cut their price objective on shares of WEBTOON Entertainment from $11.00 to $10.00 and set a "neutral" rating for the company in a report on Tuesday, August 11th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of WEBTOON Entertainment in a report on Friday, July 17th. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, WEBTOON Entertainment has a consensus rating of "Hold" and a consensus target price of $13.70.

WEBTOON Entertainment Trading Down 1.8%

The firm's fifty day simple moving average is $10.17 and its 200 day simple moving average is $10.78. The company has a market cap of $1.28 billion, a price-to-earnings ratio of -3.58 and a beta of 2.56.

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 for the quarter, beating analysts' consensus estimates of ($0.07) by $0.11. The firm had revenue of $338.47 million during the quarter, compared to analysts' expectations of $339.89 million. WEBTOON Entertainment had a negative net margin of 25.09% and a positive return on equity of 2.10%. WEBTOON Entertainment's quarterly revenue was down 2.8% compared to the same quarter last year. During the same period in the previous year, the company earned $0.07 earnings per share. As a group, sell-side analysts expect that WEBTOON Entertainment Inc. will post -0.12 EPS for the current year.

Institutional Investors Weigh In On WEBTOON Entertainment

A number of hedge funds have recently added to or reduced their stakes in WBTN. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in WEBTOON Entertainment by 8.6% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,816 shares of the company's stock worth $89,000 after buying an additional 774 shares in the last quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych boosted its holdings in WEBTOON Entertainment by 13.3% in the first quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 8,500 shares of the company's stock valued at $78,000 after acquiring an additional 1,000 shares during the last quarter. AQR Capital Management LLC lifted its position in WEBTOON Entertainment by 1.2% during the fourth quarter. AQR Capital Management LLC now owns 90,643 shares of the company's stock valued at $1,181,000 after buying an additional 1,061 shares in the last quarter. BNP Paribas Financial Markets raised its position in WEBTOON Entertainment by 103.4% in the third quarter. BNP Paribas Financial Markets now owns 3,548 shares of the company's stock valued at $69,000 after purchasing an additional 1,804 shares during the period. Finally, California State Teachers Retirement System boosted its holdings in WEBTOON Entertainment by 196.4% in the 2nd quarter. California State Teachers Retirement System now owns 2,878 shares of the company's stock worth $33,000 after acquiring an additional 1,907 shares during the period.

About WEBTOON Entertainment

Webtoon Entertainment Inc operates WEBTOON, a leading digital comics platform offering a diverse library of user-generated and professionally produced webcomics. The company enables creators around the world to publish serialized content in a vertical-scrolling format optimized for mobile and web consumption. Through its platform, readers can access thousands of titles across genres such as romance, fantasy, drama, and action, with both free-to-read episodes and advanced access options supported by microtransactions and advertising.

Founded as part of Naver Corporation and launched internationally in 2014, Webtoon Entertainment has grown rapidly by fostering a direct connection between comic creators and global audiences.

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