Weibo (NASDAQ:WB) Reaches New 1-Year Low - Here's What Happened

Key Points

• Weibo shares hit a new 52-week low, falling to $6.59 and trading about 0.5% lower, well below the 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: Weibo has an average rating of “Reduce” and a consensus price target of $8.80, with ratings spanning buy, hold and sell.
• Despite the stock’s decline, Weibo beat quarterly expectations, reporting $0.38 in adjusted earnings per share and $453.83 million in revenue versus estimates of $0.36 and $442.45 million, respectively.

Weibo Corporation (NASDAQ:WB - Get Free Report) shares hit a new 52-week low on Tuesday . The company traded as low as $6.59 and last traded at $6.5950, with a volume of 304093 shares traded. The stock had previously closed at $6.64.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Benchmark reissued a "hold" rating on shares of Weibo in a report on Thursday, August 20th. Bank of America reissued an "underperform" rating on shares of Weibo in a research note on Friday, August 21st. Weiss Ratings restated a "sell (d+)" rating on shares of Weibo in a report on Friday, July 24th. Zacks Research raised shares of Weibo from a "strong sell" rating to a "hold" rating in a research note on Monday, August 3rd. Finally, Jefferies Financial Group reiterated a "buy" rating and set a $9.80 price target on shares of Weibo in a report on Thursday, May 28th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Weibo presently has an average rating of "Reduce" and a consensus target price of $8.80.

Weibo Trading Down 0.5%

The company has a current ratio of 3.59, a quick ratio of 3.59 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of $1.62 billion, a price-to-earnings ratio of 5.46, a price-to-earnings-growth ratio of 4.22 and a beta of 0.18. The business has a 50 day simple moving average of $7.47 and a 200-day simple moving average of $8.10.

Weibo (NASDAQ:WB - Get Free Report) last posted its quarterly earnings data on Thursday, August 20th. The information services provider reported $0.38 EPS for the quarter, beating analysts' consensus estimates of $0.36 by $0.02. Weibo had a net margin of 17.78% and a return on equity of 8.87%. The company had revenue of $453.83 million during the quarter, compared to the consensus estimate of $442.45 million. On average, equities analysts predict that Weibo Corporation will post 1.19 earnings per share for the current year.

Hedge Funds Weigh In On Weibo

A number of hedge funds have recently made changes to their positions in the stock. Wellington Management Group LLP increased its stake in Weibo by 41.9% during the second quarter. Wellington Management Group LLP now owns 2,363,373 shares of the information services provider's stock worth $17,158,000 after acquiring an additional 697,778 shares during the last quarter. Saba Capital Management L.P. grew its holdings in shares of Weibo by 21.0% during the 1st quarter. Saba Capital Management L.P. now owns 2,437,357 shares of the information services provider's stock worth $21,327,000 after purchasing an additional 422,294 shares during the period. Alpine Investment Management Ltd purchased a new stake in shares of Weibo during the 4th quarter worth about $3,945,000. Sei Investments Co. increased its position in Weibo by 39.6% during the 1st quarter. Sei Investments Co. now owns 584,557 shares of the information services provider's stock worth $5,115,000 after purchasing an additional 165,936 shares in the last quarter. Finally, XY Capital Ltd raised its holdings in Weibo by 94.1% in the fourth quarter. XY Capital Ltd now owns 198,356 shares of the information services provider's stock valued at $2,027,000 after buying an additional 96,150 shares during the period. Institutional investors and hedge funds own 68.77% of the company's stock.

About Weibo

Weibo Corporation NASDAQ: WB operates a social media platform in China that enables users to create, share and discover short-form content. Often described as a microblogging service, Weibo supports public posts, multimedia content, hashtags, trending topics, comments, direct messaging and interactions among users, public figures, media organizations and businesses.

The company generates revenue primarily through advertising and marketing services, including promoted content, display advertising and advertising products designed to help brands reach targeted audiences.

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