Weibo (NASDAQ:WB) Share Price Crosses Below Two Hundred Day Moving Average - Here's What Happened

Key Points

• Weibo shares fell below their 200-day moving average of $7.62, trading as low as $6.45 and last changing hands at $6.49.
• Analyst sentiment is bearish: Weibo has a consensus rating of “Reduce” and a target price of $8.80, with recent downgrades including Citigroup and Zacks Research.
• Despite the stock weakness, Weibo beat quarterly expectations with EPS of $0.38 versus $0.36 expected and revenue of $453.83 million versus $442.45 million estimated; institutional investors own 68.77% of shares.

Shares of Weibo Corporation (NASDAQ:WB - Get Free Report) crossed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $7.62 and traded as low as $6.45. Weibo shares last traded at $6.49, with a volume of 643,316 shares trading hands.

Analysts Set New Price Targets

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

Weibo Price Performance

The company has a market capitalization of $1.59 billion, a price-to-earnings ratio of 5.36 and a beta of 0.17. The company has a debt-to-equity ratio of 0.46, a quick ratio of 3.59 and a current ratio of 3.59. The business has a 50 day moving average price of $6.82 and a 200-day moving average price of $7.62.

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

Institutional Trading of Weibo

Hedge funds have recently modified their holdings of the stock. EverSource Wealth Advisors LLC increased 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 worth $34,000 after acquiring an additional 2,990 shares in the last quarter. QRG Capital Management Inc. boosted its stake in Weibo by 15.2% during 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 during the last quarter. Bank of America Corp DE boosted its stake in Weibo by 45.9% during the 1st quarter. Bank of America Corp DE now owns 35,307 shares of the information services provider's stock valued at $309,000 after purchasing an additional 11,109 shares during the last quarter. Nykredit A S acquired a new position in Weibo during the 2nd quarter valued at about $93,000. Finally, DGS Capital Management LLC increased its holdings in Weibo by 19.7% during the 1st quarter. DGS Capital Management LLC now owns 127,750 shares of the information services provider's stock worth $1,118,000 after purchasing an additional 20,982 shares in the last quarter. Institutional investors own 68.77% of the company's stock.

Weibo Company Profile

Weibo Corp. NASDAQ: WB operates a Chinese-language social media platform that enables users to create, share and discover content through short posts, videos, images, live streams and other multimedia formats. The platform supports public conversations, following relationships, trending topics and content distribution across entertainment, news, sports, technology and other categories.

Weibo generates revenue primarily through advertising and marketing services, including promoted content and brand campaigns.

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