WEBTOON Entertainment (NASDAQ:WBTN) Lowered to Strong Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded WEBTOON Entertainment from “sell” to “strong sell,” adding to mixed analyst sentiment. The stock has an overall “Hold” consensus rating and an average price target of $13.70.
• WEBTOON shares opened at $8.80, near their $7.85 one-year low and well below the $22.47 high; the company’s market capitalization is approximately $1.19 billion.
• The company beat quarterly earnings expectations with $0.04 in EPS versus a projected loss of $0.07, but revenue declined 2.8% year over year to $338.47 million and net margin remained negative at 25.09%.

WEBTOON Entertainment (NASDAQ:WBTN - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research report issued on Sunday.

WBTN has been the topic of several other reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of WEBTOON Entertainment in a research report on Friday, July 17th. Evercore restated an "outperform" rating and set a $12.00 price objective on shares of WEBTOON Entertainment in a report on Tuesday, August 11th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of WEBTOON Entertainment from $11.00 to $10.00 and set a "neutral" rating for the company in a research report on Tuesday, August 11th. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $13.70.

WEBTOON Entertainment Stock Performance

Shares of WEBTOON Entertainment stock opened at $8.80 on Friday. The company has a market capitalization of $1.19 billion, a PE ratio of -3.35 and a beta of 2.56. The company has a 50-day simple moving average of $10.23 and a two-hundred day simple moving average of $10.80. WEBTOON Entertainment has a one year low of $7.85 and a one year high of $22.47.

WEBTOON Entertainment (NASDAQ:WBTN - Get Free Report) last announced its earnings results on Monday, August 10th. The company reported $0.04 earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.11. The company had revenue of $338.47 million during the quarter, compared to the consensus estimate of $339.89 million. WEBTOON Entertainment had a negative net margin of 25.09% and a positive return on equity of 2.10%. WEBTOON Entertainment's revenue was down 2.8% compared to the same quarter last year. During the same period last year, the firm earned $0.07 earnings per share. On average, equities analysts predict that WEBTOON Entertainment will post -0.12 earnings per share for the current fiscal year.

Institutional Trading of WEBTOON Entertainment

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WBTN. Rockefeller Capital Management L.P. purchased a new stake in WEBTOON Entertainment during the 4th quarter valued at about $27,000. BNP Paribas Financial Markets lifted 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 purchasing an additional 1,804 shares during the period. Parallel Advisors LLC grew its position in WEBTOON Entertainment by 620.4% during the 1st quarter. Parallel Advisors LLC now owns 4,445 shares of the company's stock worth $41,000 after purchasing an additional 3,828 shares during the period. State of Wyoming purchased a new position in shares of WEBTOON Entertainment during the 4th quarter valued at about $96,000. Finally, Generali Investments Towarzystwo Funduszy Inwestycyjnych raised its stake in shares of WEBTOON Entertainment by 13.3% during 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.

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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