Weibo (NASDAQ:WB) Hits New 52-Week Low - Should You Sell?

Key Points

• Weibo shares hit a new 52-week low of $6.10, down 0.2% from the prior close, with the stock trading below both its 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: Weibo has a consensus rating of “Reduce” and an average price target of $8.10, with ratings ranging from Buy to Sell.
• Despite the share-price weakness, Weibo recently exceeded quarterly expectations, reporting $0.38 in EPS versus $0.36 expected and revenue of $453.83 million versus $442.45 million forecast.

Weibo Corporation (NASDAQ:WB - Get Free Report)'s share price hit a new 52-week low during trading on Wednesday. The company traded as low as $6.10 and last traded at $6.1050, with a volume of 472,726 shares trading hands. The stock had previously closed at $6.18.

Wall Street Analyst Weigh In

WB has been the topic of a number of research reports. Zacks Research raised shares of Weibo from a "strong sell" rating to a "hold" rating in a research note on Friday, October 23rd. Weiss Ratings reissued a "sell (d+)" rating on shares of Weibo in a research note on Thursday, October 22nd. The Goldman Sachs Group set a $6.70 price target on shares of Weibo in a research note on Friday, October 23rd. Bank of America restated an "underperform" rating on shares of Weibo in a report on Friday, August 21st. Finally, Citigroup cut Weibo from a "buy" rating to a "neutral" rating and cut their price objective for the company from $9.30 to $7.80 in a research report on Thursday, August 20th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $8.10.

Weibo Stock Down 0.2%

The company has a market cap of $1.51 billion, a P/E ratio of 5.10 and a beta of 0.17. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.59 and a quick ratio of 3.59. The company's 50-day moving average is $6.64 and its two-hundred day moving average is $8.24.

Weibo (NASDAQ:WB - Get Free Report) last posted its earnings results on Thursday, August 20th. The information services provider reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.02. Weibo had a net margin of 17.78% and a return on equity of 8.87%. The business had revenue of $453.83 million for the quarter, compared to analysts' expectations of $442.45 million. As a group, equities analysts predict that Weibo Corporation will post 1.02 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of WB. SBI Securities Co. Ltd. lifted its stake in Weibo by 67.5% in the 3rd quarter. SBI Securities Co. Ltd. now owns 6,325 shares of the information services provider's stock worth $41,000 after purchasing an additional 2,550 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Weibo by 337.5% during the first quarter. EverSource Wealth Advisors LLC now owns 3,876 shares of the information services provider's stock valued at $34,000 after purchasing an additional 2,990 shares in the last quarter. QRG Capital Management Inc. grew its position in shares of Weibo by 15.2% during the second quarter. QRG Capital Management Inc. now owns 23,465 shares of the information services provider's stock valued at $170,000 after purchasing an additional 3,090 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of Weibo by 45.9% in the first quarter. Bank of America Corp DE now owns 35,307 shares of the information services provider's stock worth $309,000 after purchasing an additional 11,109 shares during the last quarter. Finally, Nykredit A S bought a new stake in shares of Weibo in the second quarter worth about $93,000. Institutional investors own 68.77% of the company's stock.

Weibo Company Profile

Weibo Corp. NASDAQ: WB operates a social media platform in China centered on the Weibo service, a microblogging and content-sharing network. The platform enables users to create, discover and distribute text, images, video and live content, while allowing public figures, media organizations, businesses and government agencies to engage with audiences and participate in public discussions.

Weibo generates revenue primarily through advertising and marketing services, including promoted content and other brand- and performance-based advertising solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.