Weibo (NASDAQ:WB) Reaches New 52-Week Low - Here's What Happened

Key Points

• Weibo shares hit a new 52-week low of $6.25, last trading near $6.24 and down 0.7%, below its 50-day and 200-day moving averages.
• Analyst sentiment has deteriorated, with recent downgrades and a consensus “Reduce” rating. The average price target is $8.80, while Citigroup lowered its target to $7.80.
• Despite the stock weakness, Weibo beat quarterly expectations with earnings of $0.38 per share versus $0.36 expected and revenue of $453.83 million versus $442.45 million estimated.

Weibo Corporation (NASDAQ:WB - Get Free Report)'s stock price reached a new 52-week low during trading on Thursday. The stock traded as low as $6.25 and last traded at $6.2430, with a volume of 12,512 shares. The stock had previously closed at $6.33.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Zacks Research lowered Weibo from a "hold" rating to a "strong sell" rating in a report on Thursday, September 24th. Bank of America reissued an "underperform" rating on shares of Weibo in a report on Friday, August 21st. Weiss Ratings reissued a "sell (d+)" rating on shares of Weibo in a report on Friday, July 24th. Citigroup downgraded Weibo from a "buy" rating to a "neutral" rating and decreased their price target for the company from $9.30 to $7.80 in a report on Thursday, August 20th. Finally, Benchmark reissued a "hold" rating on shares of Weibo in a report on Thursday, August 20th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus target price of $8.80.

Weibo Stock Down 0.7%

The business has a fifty day simple moving average of $6.74 and a two-hundred day simple moving average of $7.57. 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 company has a market cap of $1.54 billion, a PE ratio of 5.19 and a beta of 0.17.

Weibo (NASDAQ:WB - Get Free Report) last posted its quarterly earnings results on Thursday, August 20th. The information services provider reported $0.38 earnings per share for the quarter, topping 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 firm had revenue of $453.83 million for the quarter, compared to the consensus estimate of $442.45 million. As a group, equities research analysts predict that Weibo Corporation will post 1.02 earnings per share for the current year.

Hedge Funds Weigh In On Weibo

A number of hedge funds have recently modified their holdings of WB. SBI Securities Co. Ltd. lifted its stake in Weibo by 67.5% during the 3rd quarter. SBI Securities Co. Ltd. now owns 6,325 shares of the information services provider's stock worth $41,000 after acquiring an additional 2,550 shares in the last quarter. QRG Capital Management Inc. raised its position in Weibo by 15.2% in the 2nd 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. Tidal Investments LLC purchased a new position in Weibo in the second quarter worth approximately $208,000. Squarepoint Ops LLC grew its stake in shares of Weibo by 55.0% during the second quarter. Squarepoint Ops LLC now owns 101,006 shares of the information services provider's stock worth $733,000 after purchasing an additional 35,831 shares in the last quarter. Finally, Nykredit A S purchased a new position in shares of Weibo in the 2nd quarter valued at about $93,000. 68.77% of the stock is currently owned by hedge funds and other institutional investors.

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.

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