Xunlei (NASDAQ:XNET) Stock Passes Below 200-Day Moving Average - Should You Sell?

Key Points

• Xunlei shares fell below their 200-day moving average, reaching $4.92 versus the $5.71 average before last trading at $5.04.
• Analyst sentiment is cautious: Wall Street Zen downgraded the stock to “Hold,” while Weiss Ratings raised its rating slightly; MarketBeat reports an overall “Hold” consensus.
• Xunlei reported a quarterly loss of $0.03 per share on $102.11 million in revenue and continues to have a negative net margin, while institutional investors own about 5.07% of the company.

Xunlei Limited (NASDAQ:XNET - Get Free Report)'s share price passed below its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $5.71 and traded as low as $4.92. Xunlei shares last traded at $5.04, with a volume of 241,758 shares.

Wall Street Analysts Forecast Growth

Several research analysts have commented on XNET shares. Weiss Ratings upgraded shares of Xunlei from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, June 3rd. Wall Street Zen lowered Xunlei from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. One equities research analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has an average rating of "Hold".

Xunlei Stock Up 0.8%

The company has a market cap of $320.80 million, a price-to-earnings ratio of -4.06 and a beta of 1.15. The stock's 50-day moving average is $5.39 and its 200-day moving average is $5.71. The company has a current ratio of 2.03, a quick ratio of 2.03 and a debt-to-equity ratio of 0.03.

Xunlei (NASDAQ:XNET - Get Free Report) last issued its earnings results on Thursday, August 13th. The software maker reported ($0.03) earnings per share (EPS) for the quarter. The firm had revenue of $102.11 million during the quarter. Xunlei had a positive return on equity of 0.62% and a negative net margin of 15.25%.

Xunlei announced that its board has initiated a stock repurchase program on Friday, June 26th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the software maker to reacquire shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company's board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Xunlei

A number of institutional investors have recently added to or reduced their stakes in XNET. Public Employees Retirement System of Ohio purchased a new stake in Xunlei in the second quarter worth approximately $251,000. Renaissance Technologies LLC purchased a new position in shares of Xunlei during the first quarter worth approximately $497,000. QRG Capital Management Inc. lifted its holdings in shares of Xunlei by 36.2% in the 1st quarter. QRG Capital Management Inc. now owns 17,200 shares of the software maker's stock worth $96,000 after acquiring an additional 4,575 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in shares of Xunlei in the 4th quarter worth approximately $38,000. Finally, Susquehanna Fundamental Investments LLC purchased a new stake in shares of Xunlei in the 4th quarter valued at $224,000. 5.07% of the stock is currently owned by institutional investors.

Xunlei Company Profile

Xunlei Limited NASDAQ: XNET is a China-based technology company specializing in content acceleration and cloud services. Its core offerings include the Xunlei download manager, which integrates peer-to-peer (P2P) and cloud-based acceleration technologies to enhance file delivery speeds for large downloads. The company has expanded its suite of products to encompass cloud storage solutions, media streaming applications and mobile browsing tools, all aimed at improving digital content distribution and user experience.

Founded in 2003 and headquartered in Shenzhen, Xunlei originally gained traction by addressing bandwidth constraints in China's burgeoning internet market.

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