WEBTOON Entertainment (NASDAQ:WBTN) Stock Price Down 4.4% - Should You Sell?

Key Points

• WEBTOON Entertainment's stock price fell by 4.4%, trading at $20.07 after reaching a low of $20.26, with trading volume down 28% from the average.
• Analysts have varied outlooks on WEBTOON Entertainment, with ratings shifting from "strong sell" to "hold," and price targets raised by multiple firms, including a boost from $18.00 to $25.00 by Deutsche Bank.
• The company reported $348.27 million in revenue for the quarter, exceeding estimates, although it recorded a negative return on equity and a net margin of -7.24%.

WEBTOON Entertainment Inc. (NASDAQ:WBTN - Get Free Report)'s share price dropped 4.4% during trading on Thursday . The company traded as low as $20.26 and last traded at $20.07. Approximately 376,736 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 522,459 shares. The stock had previously closed at $21.00.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. JPMorgan Chase & Co. upped their price objective on shares of WEBTOON Entertainment from $14.00 to $22.00 and gave the company a "neutral" rating in a report on Tuesday. Zacks Research upgraded shares of WEBTOON Entertainment from a "hold" rating to a "strong-buy" rating in a report on Monday, August 25th. The Goldman Sachs Group upped their price objective on shares of WEBTOON Entertainment from $11.00 to $15.00 and gave the company a "buy" rating in a report on Wednesday, August 13th. Evercore ISI upped their price objective on shares of WEBTOON Entertainment from $20.00 to $23.00 and gave the company an "outperform" rating in a report on Wednesday, August 13th. Finally, Morgan Stanley upped their price objective on shares of WEBTOON Entertainment from $10.00 to $11.00 and gave the company an "equal weight" rating in a report on Wednesday, August 13th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $17.83.

WEBTOON Entertainment Stock Performance

The business's 50 day moving average is $13.03 and its 200-day moving average is $10.21. The stock has a market cap of $2.78 billion, a price-to-earnings ratio of -27.68 and a beta of 1.34.

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

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of WBTN. Signaturefd LLC raised its holdings in shares of WEBTOON Entertainment by 59.6% during the 2nd quarter. Signaturefd LLC now owns 3,375 shares of the company's stock worth $31,000 after acquiring an additional 1,261 shares during the period. CWM LLC raised its holdings in WEBTOON Entertainment by 649.0% in the 2nd quarter. CWM LLC now owns 4,674 shares of the company's stock valued at $42,000 after buying an additional 4,050 shares during the period. Deutsche Bank AG purchased a new stake in WEBTOON Entertainment in the 4th quarter valued at about $54,000. Generali Investments Towarzystwo Funduszy Inwestycyjnych purchased a new stake in WEBTOON Entertainment in the 1st quarter valued at about $58,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings 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 buying an additional 774 shares during the period.

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.