Zacks Investment Research Downgrades Weibo (NASDAQ:WB) to Strong Sell

Weibo (NASDAQ:WB) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Thursday, Zacks.com reports.

According to Zacks, “Weibo Corporation operates as a social media platform for people to create, distribute and discover Chinese-language content. The Company operates in two segments: Advertising and Marketing Services, and Other Services. The company offers self-expression products; social products; discovery products; notifications; third-party online games. Weibo also develops mobile apps, such as Weibo Headlines; Weibo Weather and WeiDisk. It also provides advertising and marketing solutions, including social display ads and promoted marketing products. Weibo Corporation is headquartered in Beijing, China. “

A number of other brokerages have also weighed in on WB. Citigroup boosted their target price on Weibo from $63.00 to $66.00 and gave the stock a “buy” rating in a research report on Friday, November 12th. HSBC decreased their target price on Weibo from $46.00 to $45.00 and set a “hold” rating for the company in a research report on Friday, November 12th. Finally, The Goldman Sachs Group decreased their target price on Weibo from $54.00 to $44.50 and set a “neutral” rating for the company in a research report on Wednesday, December 8th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and three have given a buy rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $55.58.

WB opened at $34.24 on Thursday. The stock has a 50-day moving average price of $35.54 and a 200-day moving average price of $46.35. The company has a debt-to-equity ratio of 0.75, a current ratio of 4.17 and a quick ratio of 4.17. The firm has a market cap of $8.03 billion, a PE ratio of 23.14, a P/E/G ratio of 3.09 and a beta of 0.98. Weibo has a 1 year low of $27.30 and a 1 year high of $64.70.

Weibo (NASDAQ:WB) last posted its quarterly earnings results on Wednesday, November 10th. The information services provider reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.84 by $0.06. The firm had revenue of $607.43 million during the quarter, compared to analyst estimates of $575.79 million. Weibo had a return on equity of 11.38% and a net margin of 15.86%. During the same quarter in the previous year, the firm earned $0.15 EPS. As a group, sell-side analysts anticipate that Weibo will post 2.1 EPS for the current year.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Comerica Bank grew its stake in shares of Weibo by 2.6% during the 2nd quarter. Comerica Bank now owns 7,883 shares of the information services provider’s stock valued at $375,000 after acquiring an additional 200 shares during the period. Vontobel Holding Ltd. raised its holdings in shares of Weibo by 4.1% during the 3rd quarter. Vontobel Holding Ltd. now owns 5,579 shares of the information services provider’s stock worth $265,000 after acquiring an additional 221 shares in the last quarter. Eaton Vance Management raised its holdings in shares of Weibo by 56.0% during the 3rd quarter. Eaton Vance Management now owns 780 shares of the information services provider’s stock worth $37,000 after acquiring an additional 280 shares in the last quarter. Parametric Portfolio Associates LLC raised its holdings in shares of Weibo by 0.4% during the 2nd quarter. Parametric Portfolio Associates LLC now owns 76,965 shares of the information services provider’s stock worth $4,050,000 after acquiring an additional 328 shares in the last quarter. Finally, Caisse DE Depot ET Placement DU Quebec raised its holdings in shares of Weibo by 5.9% during the 2nd quarter. Caisse DE Depot ET Placement DU Quebec now owns 10,727 shares of the information services provider’s stock worth $564,000 after acquiring an additional 600 shares in the last quarter. 29.00% of the stock is owned by hedge funds and other institutional investors.

About Weibo

Weibo Corp. engages in the creation, distribution, and discovery of Chinese-language content. It operates through the Advertising and Marketing Services, and Other Services segments. Its products and services include Self-Expression, such as Feed, Individual page, and Enterprise page; Social Products, such as Follow, Repost, Comment, Favorite, like, Mention, Messenger, and Group Chat; Discovery Products, such as Information Feed, Search, Object Page, Trends, and Discovery Channel; Notifications; Weibo Games; VIP Membership; and Weibo Apps.

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