Weibo (NASDAQ:WB) Shares Gap Up Following Strong Earnings

Weibo Co. (NASDAQ:WB - Get Free Report)'s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $8.42, but opened at $8.79. Weibo shares last traded at $8.59, with a volume of 719,555 shares traded.

The information services provider reported $0.45 EPS for the quarter, topping analysts' consensus estimates of $0.38 by $0.07. The business had revenue of $396.86 million for the quarter, compared to analyst estimates of $394.21 million. Weibo had a return on equity of 11.03% and a net margin of 21.30%. The firm's revenue for the quarter was up .4% on a year-over-year basis. During the same period in the previous year, the company posted $0.41 earnings per share.

Weibo Dividend Announcement

The company also recently announced an annual dividend, which was paid on Thursday, May 15th. Stockholders of record on Wednesday, April 9th were issued a $0.82 dividend. This represents a dividend yield of 7.77%. The ex-dividend date was Wednesday, April 9th. Weibo's payout ratio is 57.97%.

Analysts Set New Price Targets

Separately, Wall Street Zen lowered Weibo from a "buy" rating to a "hold" rating in a research note on Tuesday, May 13th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat.com, Weibo has an average rating of "Hold" and an average price target of $9.75.

Hedge Funds Weigh In On Weibo

Hedge funds and other institutional investors have recently bought and sold shares of the business. Blue Trust Inc. lifted its holdings in shares of Weibo by 155.2% during the fourth quarter. Blue Trust Inc. now owns 2,700 shares of the information services provider's stock worth $27,000 after buying an additional 1,642 shares in the last quarter. Shell Asset Management Co. bought a new position in Weibo during the fourth quarter worth about $54,000. E Fund Management Hong Kong Co. Ltd. acquired a new stake in Weibo in the 4th quarter worth about $70,000. PARUS FINANCE UK Ltd bought a new stake in Weibo in the 4th quarter valued at about $99,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its position in shares of Weibo by 22.4% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 11,653 shares of the information services provider's stock worth $110,000 after purchasing an additional 2,135 shares in the last quarter. Institutional investors own 68.77% of the company's stock.

Weibo Price Performance

The company has a quick ratio of 3.57, a current ratio of 3.57 and a debt-to-equity ratio of 0.51. The company's fifty day moving average price is $8.60 and its 200 day moving average price is $9.44. The company has a market capitalization of $2.27 billion, a P/E ratio of 6.42 and a beta of 0.01.

Weibo Company Profile

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People's Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform.