Weibo (NASDAQ:WB) Shares Cross Below 200 Day Moving Average - Time to Sell?

Key Points

• Technical breach: Weibo shares fell below their 200-day moving average, trading as low as $8.32 and last at $8.35 versus a 200-day MA of $9.99.
• Analyst action: Weiss Ratings downgraded Weibo to a "sell," though the market consensus remains a "Hold" with a $14.00 price target (one buy, one sell among tracked analysts).
• Mixed quarterly results and dividend: Q1 earnings missed expectations at $0.25 EPS versus $0.32 expected while revenue beat at $473.3M, and the company declared a $0.61 annual dividend (ex-dividend April 17, payable May 22).

Weibo Corporation (NASDAQ:WB - Get Free Report)'s stock price passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $9.99 and traded as low as $8.32. Weibo shares last traded at $8.35, with a volume of 423,439 shares.

Analysts Set New Price Targets

Separately, Weiss Ratings downgraded shares of Weibo from a "hold (c)" rating to a "sell (d+)" rating in a report on Monday, April 27th. One research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $14.00.

Weibo Stock Down 0.1%

The stock's fifty day moving average is $9.11 and its two-hundred day moving average is $9.99. The company has a current ratio of 3.39, a quick ratio of 3.39 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $2.04 billion, a PE ratio of 4.91, a P/E/G ratio of 4.38 and a beta of 0.22.

Weibo (NASDAQ:WB - Get Free Report) last issued its quarterly earnings results on Thursday, March 19th. The information services provider reported $0.25 earnings per share for the quarter, missing analysts' consensus estimates of $0.32 by ($0.07). The company had revenue of $473.26 million during the quarter, compared to analysts' expectations of $444.28 million. Weibo had a return on equity of 10.63% and a net margin of 25.55%.Weibo's quarterly revenue was up 3.6% compared to the same quarter last year. During the same period last year, the firm posted $0.40 earnings per share. As a group, analysts predict that Weibo Corporation will post 1.45 EPS for the current year.

Weibo Cuts Dividend

The business also recently declared an annual dividend, which will be paid on Friday, May 22nd. Investors of record on Friday, April 17th will be issued a $0.61 dividend. This represents a dividend yield of 690.0%. The ex-dividend date of this dividend is Friday, April 17th. Weibo's payout ratio is 34.71%.

Institutional Investors Weigh In On Weibo

Institutional investors have recently added to or reduced their stakes in the business. WealthCollab LLC lifted its holdings in Weibo by 50.1% during the fourth quarter. WealthCollab LLC now owns 5,123 shares of the information services provider's stock valued at $52,000 after purchasing an additional 1,709 shares during the last quarter. Daiwa Securities Group Inc. purchased a new stake in Weibo during the second quarter valued at about $61,000. FourThought Financial Partners LLC purchased a new stake in Weibo during the fourth quarter valued at about $110,000. AQR Capital Management LLC purchased a new stake in Weibo during the first quarter valued at about $117,000. Finally, Verition Fund Management LLC purchased a new stake in Weibo during the fourth quarter valued at about $138,000. 68.77% of the stock is owned by hedge funds and other institutional investors.

About Weibo

Weibo Corporation operates one of China’s leading social media and microblogging platforms under the brand name Weibo. Launched in August 2009 by Sina Corporation, Weibo enables users to create, share and engage with short-form posts in real time. The platform supports text, images, videos and live streams, and offers features such as trending topics, hashtag campaigns and public discussion forums to facilitate user interaction and content discovery.

Weibo’s product suite extends beyond basic social networking to include digital content services such as live streaming, online games, value-added messaging and e-commerce integrations.

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