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

Key Points

• Weibo shares fell to a new 52-week low of $6.36, last trading around $6.38 and down 1.6% from the prior close.
• Analyst sentiment is largely negative: Weibo has an average “Reduce” rating, with three Sell ratings, two Holds and one Buy; the average price target is $8.80.
• Despite the stock weakness, Weibo exceeded quarterly expectations, reporting earnings of $0.38 per share versus $0.36 expected and revenue of $453.83 million versus $442.45 million forecast.

Weibo Corporation (NASDAQ:WB - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday. The company traded as low as $6.36 and last traded at $6.3750, with a volume of 474996 shares. The stock had previously closed at $6.46.

Analyst Upgrades and Downgrades

WB has been the topic of several analyst reports. Benchmark reiterated a "hold" rating on shares of Weibo in a research report on Thursday, August 20th. Weiss Ratings restated a "sell (d+)" rating on shares of Weibo in a research report on Friday, July 24th. Citigroup lowered shares of Weibo from a "buy" rating to a "neutral" rating and decreased their target price for the stock from $9.30 to $7.80 in a report on Thursday, August 20th. Zacks Research cut shares of Weibo from a "hold" rating to a "strong sell" rating in a research note on Thursday, September 24th. Finally, Bank of America reissued an "underperform" rating on shares of Weibo in a report on Friday, August 21st. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Weibo currently has an average rating of "Reduce" and an average price target of $8.80.

Weibo Trading Down 1.6%

The stock has a market capitalization of $1.56 billion, a P/E ratio of 5.25 and a beta of 0.18. The stock's fifty day moving average price is $7.18 and its two-hundred day moving average price is $7.82. The company has a current ratio of 3.59, a quick ratio of 3.59 and a debt-to-equity ratio of 0.46.

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 for the quarter, topping analysts' consensus estimates of $0.36 by $0.02. The company had revenue of $453.83 million during the quarter, compared to analyst estimates of $442.45 million. Weibo had a net margin of 17.78% and a return on equity of 8.87%. Equities research analysts forecast that Weibo Corporation will post 1.02 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. QRG Capital Management Inc. raised its holdings in Weibo by 15.2% in the second quarter. QRG Capital Management Inc. now owns 23,465 shares of the information services provider's stock worth $170,000 after buying an additional 3,090 shares during the last quarter. Tidal Investments LLC purchased a new stake in shares of Weibo during the second quarter valued at approximately $208,000. Squarepoint Ops LLC increased its position 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 valued at $733,000 after acquiring an additional 35,831 shares in the last quarter. Nykredit A S bought a new stake in shares of Weibo during the second quarter valued at approximately $93,000. Finally, Headlands Technologies LLC raised its holdings in Weibo by 150.0% in the 2nd quarter. Headlands Technologies LLC now owns 119,350 shares of the information services provider's stock worth $866,000 after acquiring an additional 71,607 shares during the last quarter. Hedge funds and other institutional investors 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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