Weibo Corporation (WB) Volatility Spurs A Quest For Clarity


Invesco Hong Kong Ltd. recently announced the acquisition of new stake in Weibo Corporation (NASDAQ:WB). The institutional investor has increased its shareholding in the Communication Services company by 124.14% to 7.59 million shares with purchase of 4.21 million shares. This fresh investment now brings its stake to 6.09% valued currently at $262.48 million. In addition, Schroder Investment Management (H.. raised its holdings by 3699.0 to 6.01 million shares. And Wells Capital Management, Inc. has lifted its position by 6.06% or 0.18 million shares – to 3.23 million shares.

With over 1.41 million Weibo Corporation (WB) shares trading Tuesday and a closing price of $38.45 on the day, the dollar volume was approximately $54.4 million. The shares have shown a positive weekly performance of 7.16% and its price on 09/01/20 gained nearly 3.08%. Currently, there are 226.39M common shares owned by the public and among those 113.87M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 11 analysts who have offered their price forecasts for WB have a consensus price objective of $43.00. The analysts have set the share’s price value over the next 12 months at a high of $50.00 and a low of $38.60 should the stock experience a downside. Incidentally, analysts’ outlook for the Weibo Corporation stock is 2.30 for the next 12 months. The average price target is 7.95% above its last price level and an upside to the estimated low will see the stock gain 0.39% over that period. But an upside of 23.1% will see the stock hit the forecast high price target while mean target price for the stock is $42.00.

The top 3 mutual fund holders in Weibo Corporation are Schroder ISF – Emerging Asia, Wells Fargo Emerging Markets Equi, and Government Pension Fund – Global. Schroder ISF – Emerging Asia owns 1.95 million shares of the company’s stock, all valued at over $67.29 million. Wells Fargo Emerging Markets Equi bought 0.23 million shares to see its total holdings expand to 1.35 million shares valued at over $46.52 million and representing 1.08% of the shares outstanding. Government Pension Fund – Global bought 0.57 million shares to bring its total holdings to over 1.19 million shares at a value of $41.03 million. Government Pension Fund – Global now owns shares totaling to 0.95% of the shares outstanding.

Shares of Weibo Corporation (NASDAQ: WB) opened at $37.93, up $0.63 from a prior closing price of $37.30. However, the script later closed the day at $38.45, up 3.08%. The company’s stock has a 5-day price change of 7.16% and 16.59% over the past three months. WB shares are trading -17.04% year to date (YTD), with the 12-month market performance down to -11.47% lower. It has a 12-month low price of $28.93 and touched a high of $55.52 over the same period. Currently, 1.41 million shares have been traded, compared to an average intraday trading volume of 1.58 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 9.64%, 9.55%, and -0.38% respectively.

Institutional ownership of Weibo Corporation (NASDAQ: WB) shares accounts for 41.00% of the company’s 226.39M shares outstanding. Mutual fund holders own 18.15%, while other institutional holders and individual stakeholders account for 30.81% and — respectively.

It has a market capitalization of $8.21B and a beta (3y monthly) value of 1.64. The stock’s trailing 12-month PE ratio is 22.20, while the earnings-per-share (ttm) stands at $1.73. The company has a PEG of 14.05 and a Quick Ratio of 4.70 with the debt-to-equity ratio at 0.73. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.15% over the week and 3.62% over the month.

Analysts forecast that Weibo Corporation (WB) will achieve an EPS of $0.46 for the current quarter, $0.64 for the next quarter and $2.62 for 2021. The lowest estimate earnings-per-share for the quarter is $0.41 while analysts give the company a high EPS estimate of $0.53. Comparatively, EPS for the current quarter was $0.68 a year ago. Earnings per share for the fiscal year are expected to decrease by -11.10%, and 24.89% over the next financial year. EPS should shrink at an annualized rate of 1.58% over the next five years, compared to 52.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 11 brokerage firm advisors rate Weibo Corporation (WB) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 5 of the 11 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the WB, a number of firms have released research notes about the stock. Barclays stated their Equal Weight rating for the stock in a research note on April 22, 2020, with the firm’s price target at $47-$40. CLSA coverage for the Weibo Corporation (WB) stock in a research note released on November 15, 2019 offered a Outperform rating with a price target of. Credit Suisse was of a view on November 14, 2019 that the stock is Neutral, while Jefferies gave the stock Buy rating on October 18, 2019, issuing a price target of. Credit Suisse on their part issued Outperform rating on October 04, 2019.


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