WEBTOON Entertainment (NASDAQ:WBTN) Hits New 52-Week Low Following Analyst Downgrade

Key Points

• WEBTOON Entertainment shares hit a new 52-week low, falling as low as $7.85 after JPMorgan cut its price target from $11 to $10 while maintaining a neutral rating.
• Analyst sentiment remains mixed, with the stock carrying a consensus “Hold” rating and an average price target of $13.25. Evercore maintains an outperform rating with a $12 target, while Weiss Ratings rates it “sell.”
• WEBTOON beat quarterly EPS expectations at $0.04 versus the projected loss of $0.07, but revenue of $338.47 million declined 2.8% year over year and the company continued to post a negative net margin.

Shares of WEBTOON Entertainment Inc. (NASDAQ:WBTN - Get Free Report) reached a new 52-week low on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $11.00 to $10.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. WEBTOON Entertainment traded as low as $7.85 and last traded at $8.5660, with a volume of 187161 shares. The stock had previously closed at $9.45.

Several other research firms have also issued reports on WBTN. Wall Street Zen upgraded WEBTOON Entertainment from a "sell" rating to a "hold" rating in a research report on Saturday, May 16th. Evercore reissued an "outperform" rating and issued a $12.00 target price on shares of WEBTOON Entertainment in a research note on Tuesday. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of WEBTOON Entertainment in a research report on Friday, July 17th. Two investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, WEBTOON Entertainment has an average rating of "Hold" and a consensus target price of $13.25.

Hedge Funds Weigh In On WEBTOON Entertainment

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Rockefeller Capital Management L.P. bought a new position in WEBTOON Entertainment during the 4th quarter worth about $27,000. Parallel Advisors LLC grew its holdings in shares of WEBTOON Entertainment by 620.4% during the first quarter. Parallel Advisors LLC now owns 4,445 shares of the company's stock worth $41,000 after buying an additional 3,828 shares in the last quarter. BNP Paribas Financial Markets grew its holdings in shares of WEBTOON Entertainment by 103.4% during the third quarter. BNP Paribas Financial Markets now owns 3,548 shares of the company's stock worth $69,000 after buying an additional 1,804 shares in the last quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych raised its position in WEBTOON Entertainment by 13.3% in the 1st quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 8,500 shares of the company's stock valued at $78,000 after buying an additional 1,000 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in WEBTOON Entertainment by 8.6% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,816 shares of the company's stock valued at $89,000 after acquiring an additional 774 shares in the last quarter.

WEBTOON Entertainment Stock Performance

The stock has a market cap of $1.18 billion, a price-to-earnings ratio of -3.41 and a beta of 2.56. The business has a 50-day simple moving average of $10.78 and a two-hundred day simple moving average of $11.05.

WEBTOON Entertainment (NASDAQ:WBTN - Get Free Report) last posted its quarterly earnings data on Monday, August 10th. The company reported $0.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.07) by $0.11. The company had revenue of $338.47 million for the quarter, compared to the consensus estimate of $339.89 million. WEBTOON Entertainment had a negative net margin of 24.12% and a positive return on equity of 2.55%. The firm's revenue was down 2.8% compared to the same quarter last year. During the same period last year, the company earned $0.07 earnings per share. On average, analysts expect that WEBTOON Entertainment Inc. will post -0.02 earnings per share for the current fiscal year.

WEBTOON Entertainment Company Profile

Webtoon Entertainment Inc operates WEBTOON, a leading digital comics platform offering a diverse library of user-generated and professionally produced webcomics. The company enables creators around the world to publish serialized content in a vertical-scrolling format optimized for mobile and web consumption. Through its platform, readers can access thousands of titles across genres such as romance, fantasy, drama, and action, with both free-to-read episodes and advanced access options supported by microtransactions and advertising.

Founded as part of Naver Corporation and launched internationally in 2014, Webtoon Entertainment has grown rapidly by fostering a direct connection between comic creators and global audiences.

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