Weibo (NASDAQ:WB) Reaches New 12-Month Low – Here’s Why

Weibo Corporation (NASDAQ:WB)’s share price reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $6.66 and last traded at $6.6850, with a volume of 197759 shares changing hands. The stock had previously closed at $6.72.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on WB. Weiss Ratings reissued a “sell (d+)” rating on shares of Weibo in a report on Friday, July 24th. Benchmark reiterated a “hold” rating on shares of Weibo in a report on Thursday, August 20th. Jefferies Financial Group reissued a “buy” rating and issued a $9.80 price objective on shares of Weibo in a research note on Thursday, May 28th. Citigroup lowered Weibo from a “buy” rating to a “neutral” rating and lowered their target price for the stock from $9.30 to $7.80 in a research report on Thursday, August 20th. Finally, Bank of America reiterated an “underperform” rating on shares of Weibo in a research report on Friday, August 21st. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $8.80.

Weibo Trading Down 0.5%

The stock has a market capitalization of $1.64 billion, a P/E ratio of 5.52, a P/E/G ratio of 4.28 and a beta of 0.18. The firm’s 50 day simple moving average is $7.54 and its two-hundred day simple moving average is $8.22. The company has a quick ratio of 3.59, a current ratio of 3.59 and a debt-to-equity ratio of 0.46.

Weibo (NASDAQ:WB) last announced its quarterly earnings results on Thursday, August 20th. The information services provider reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.02. Weibo had a return on equity of 8.87% and a net margin of 17.78%.The business had revenue of $453.83 million for the quarter, compared to analyst estimates of $442.45 million. As a group, analysts forecast that Weibo Corporation will post 1.19 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Weibo

A number of hedge funds have recently bought and sold shares of the company. FIL Ltd purchased a new stake in Weibo during the fourth quarter worth about $16,693,000. UBS Group AG lifted its position in shares of Weibo by 102.8% during the third quarter. UBS Group AG now owns 1,377,705 shares of the information services provider’s stock worth $17,084,000 after acquiring an additional 698,521 shares in the last quarter. Wellington Management Group LLP grew its holdings in Weibo by 41.9% during the 2nd quarter. Wellington Management Group LLP now owns 2,363,373 shares of the information services provider’s stock valued at $17,158,000 after buying an additional 697,778 shares in the last quarter. JPMorgan Chase & Co. increased its holdings in Weibo by 497.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 720,348 shares of the information services provider’s stock worth $6,865,000 after acquiring an additional 599,700 shares during the period. Finally, Saba Capital Management L.P. increased its holdings in shares of Weibo by 21.0% in the first quarter. Saba Capital Management L.P. now owns 2,437,357 shares of the information services provider’s stock worth $21,327,000 after purchasing an additional 422,294 shares during the period. 68.77% of the stock is owned by hedge funds and other institutional investors.

Weibo Company Profile

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.