Weibo (NASDAQ:WB) Reaches New 52-Week Low - Time to Sell?

Key Points

• Weibo shares fell to a new 52-week low of $6.66, below both the 50-day moving average of $7.54 and the 200-day average of $8.22.
• Analyst sentiment is mostly cautious: Weibo has an average “Reduce” rating and a consensus price target of $8.80, with ratings ranging from Buy to Sell.
• Despite the stock decline, 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 hit a new 52-week low on Tuesday . The company traded as low as $6.66 and last traded at $6.6850, with a volume of 197759 shares trading hands. The stock had previously closed at $6.72.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. Benchmark restated a "hold" rating on shares of Weibo in a research report on Thursday, August 20th. Zacks Research upgraded Weibo from a "strong sell" rating to a "hold" rating in a report on Monday, August 3rd. Bank of America reiterated an "underperform" rating on shares of Weibo in a report on Friday, August 21st. Weiss Ratings reiterated a "sell (d+)" rating on shares of Weibo in a report on Friday, July 24th. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a $9.80 price objective 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 assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Weibo has an average rating of "Reduce" and a consensus target price of $8.80.

Weibo Price Performance

The company's 50 day moving average is $7.54 and its 200 day moving average is $8.22. The firm has a market capitalization of $1.64 billion, a price-to-earnings ratio of 5.52, a P/E/G ratio of 4.28 and a beta of 0.18. The company has a quick ratio of 3.59, a current ratio of 3.59 and a debt-to-equity ratio of 0.46.

Weibo (NASDAQ:WB - Get Free Report) last posted its quarterly earnings results 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. The business had revenue of $453.83 million during the quarter, compared to the consensus estimate of $442.45 million. Weibo had a return on equity of 8.87% and a net margin of 17.78%. On average, equities research analysts anticipate that Weibo Corporation will post 1.19 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Weibo

A number of institutional investors have recently added to or reduced their stakes in WB. EverSource Wealth Advisors LLC grew its stake 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 worth $34,000 after buying an additional 2,990 shares during the last quarter. Daiwa Securities Group Inc. acquired a new stake in shares of Weibo during the 2nd quarter valued at $61,000. FourThought Financial Partners LLC acquired a new stake in shares of Weibo during the 4th quarter valued at $110,000. AQR Capital Management LLC bought a new stake in Weibo during the 1st quarter worth $117,000. Finally, Nykredit A S acquired a new position in Weibo in the 2nd quarter worth about $93,000. 68.77% of the stock is currently owned by institutional investors and hedge funds.

About Weibo

Weibo Corporation operates one of China’s leading social media and microblogging platforms under the brand name Weibo. Launched in August 2009 by Sina Corporation, Weibo enables users to create, share and engage with short-form posts in real time. The platform supports text, images, videos and live streams, and offers features such as trending topics, hashtag campaigns and public discussion forums to facilitate user interaction and content discovery.

Weibo’s product suite extends beyond basic social networking to include digital content services such as live streaming, online games, value-added messaging and e-commerce integrations.

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