WEBTOON Entertainment (NASDAQ:WBTN) Trading Down 5.5% - Time to Sell?

Key Points

• WEBTOON Entertainment Inc.'s stock price fell by 5.5% during trading, reaching a low of $14.00 before closing at $14.05.
• Despite the decline, the company reported a Q2 earnings per share of $0.07, surpassing expectations, with revenues increasing 8.5% year-over-year.
• Various analysts have upgraded their ratings on the stock, with a consensus rating of "Moderate Buy" and an average price target of $14.17.

Shares of WEBTOON Entertainment Inc. (NASDAQ:WBTN - Get Free Report) were down 5.5% during trading on Wednesday . The stock traded as low as $14.00 and last traded at $14.05. Approximately 236,957 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 440,058 shares. The stock had previously closed at $14.87.

Analysts Set New Price Targets

A number of equities research analysts have commented on WBTN shares. Wall Street Zen upgraded WEBTOON Entertainment from a "strong sell" rating to a "hold" rating in a report on Saturday, August 16th. Zacks Research upgraded WEBTOON Entertainment from a "hold" rating to a "strong-buy" rating in a report on Monday, August 25th. Morgan Stanley increased their target price on WEBTOON Entertainment from $10.00 to $11.00 and gave the company an "equal weight" rating in a report on Wednesday, August 13th. The Goldman Sachs Group increased their target price on WEBTOON Entertainment from $11.00 to $15.00 and gave the company a "buy" rating in a report on Wednesday, August 13th. Finally, Evercore ISI increased their target price on WEBTOON Entertainment from $20.00 to $23.00 and gave the company an "outperform" rating in a report on Wednesday, August 13th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $14.17.

WEBTOON Entertainment Stock Performance

The stock's fifty day simple moving average is $12.00 and its two-hundred day simple moving average is $9.85. The company has a market cap of $1.95 billion, a price-to-earnings ratio of -19.43 and a beta of 1.30.

WEBTOON Entertainment (NASDAQ:WBTN - Get Free Report) last released its quarterly earnings data on Tuesday, August 12th. The company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.05. WEBTOON Entertainment had a negative net margin of 7.24% and a negative return on equity of 0.13%. The company had revenue of $348.27 million during the quarter, compared to analyst estimates of $341.63 million. During the same quarter in the prior year, the business earned $0.20 earnings per share. The business's quarterly revenue was up 8.5% compared to the same quarter last year. WEBTOON Entertainment has set its Q3 2025 guidance at EPS. Analysts predict that WEBTOON Entertainment Inc. will post -0.26 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of WEBTOON Entertainment by 8.6% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,816 shares of the company's stock worth $89,000 after purchasing an additional 774 shares in the last quarter. Signaturefd LLC increased its stake in shares of WEBTOON Entertainment by 59.6% in the second quarter. Signaturefd LLC now owns 3,375 shares of the company's stock worth $31,000 after buying an additional 1,261 shares during the last quarter. Bank of New York Mellon Corp increased its stake in shares of WEBTOON Entertainment by 8.3% in the first quarter. Bank of New York Mellon Corp now owns 35,310 shares of the company's stock worth $271,000 after buying an additional 2,709 shares during the last quarter. Deutsche Bank AG bought a new stake in shares of WEBTOON Entertainment in the fourth quarter worth $54,000. Finally, CWM LLC increased its stake in shares of WEBTOON Entertainment by 649.0% in the second quarter. CWM LLC now owns 4,674 shares of the company's stock worth $42,000 after buying an additional 4,050 shares during the last quarter.

About WEBTOON Entertainment

WEBTOON Entertainment Inc operates a storytelling platform worldwide. The company's platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories.