First Shanghai Securities took its Weibo Corporation [NASDAQ:WB] rating to the equivalent of Hold from Buy, and the price target to $44.65, in a research note dated December 31, 2020. That figure represents around a 8.85% premium from where the company’s shares closed on Wednesday. Other analysts also revised their coverage, with CLSA’s analysts upgrading the shares from “an Outperform” rating to “a Buy” rating in a research note to investors issued in late September. Meanwhile, Barclays had lowered its rating on WB to “an Equal weight” from the earlier “an Overweight”, in a research note produced for clients April 22, 2020. In addition, there was a downgrade from CLSA on November 15, 2019. The rater changed WB from “a Buy” to “an Outperform”.
Is Weibo Corporation [NASDAQ:WB] a Good Buy Right Now?
It should be noted that WB technical indicators for short, intermediate as well as long term progress have placed an overall average of 40% as Buy. The average signal changed from 100% Buy in the last week and compares with 80% Buy in the past month. Data from Weibo Corporation’s Trend Spotter indicated that the signals were Weakest. The stock current average is 1.55 million shares in the past 20 days and the short term average signal indicates a Hold. In the last 50 days, the average trading volume was 1.27 million shares while the medium term average advocated for 50% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 1.28 million shares.
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WB Price Performance
On Wall Street, Weibo Corporation [NASDAQ:WB] finished Wednesday’s session up 3.59% at $41.02. The stock went up to $41.20 at the same session while its lowest single day price was $39.22. In the last five days, it saw a fall of about -10.71%, Weibo Corporation shares dropped by almost -11.50% since the beginning of the year. However, the share price has dropped to as low as -21.61% below its one year high. On 01/13/20, the company shares recorded $52.33, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 05/29/20, the same year at $28.93. The company’s shares have declined by -11.50% in the past year. The 50-day SMA achieved is $42.93 while the 200-day SMA is $37.10. Volume dropped to 2.29 million from 3.48 million in the previous session.
Weibo Corporation [WB] Valuation Measures
Notably, Weibo Corporation [WB] stock can be classified as a good candidate in the listing of underestimated low-priced Internet Content & Information companies to purchase soonest possible with the prevailing 12-month PE ratio of 19.30. The measure means the stock is exchanging at a discount as compared to the 31.30x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 5.79 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 4.30 which means WB serve an attractive investment opportunity compared to its competitors.
WB Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 39.76 level, and in case of violation of this particular level, it will cause more drop to 38.50 level. On the upper level, 42.46 is still the key resistance. The stock may increase to the subsequent resistance at 41.74. The Relative Strength Index (RSI) pinned on the 14-day chart is 44.39, implying a neutral technical stance while the MACD stands at -3.28, meaning price will decrease in the next trading period. Percent R indicator moved to 60.80%, implying low price movement. Stochastic %K at 24.76% suggest selling the stock.
What is the short interest in Weibo Corporation?
Short interest in the Weibo Corporation stock has surged, increasing by 0.6 million shares to total 9.62 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 10.22 million, data from Yahoo Finance shows. The decrease of -6.24% suggests the stock saw some decreased bullish sentiment.
Weibo Corporation’s Biggest Shareholders: Who Owns Weibo Corporation [WB]?
Filings by Alibaba Group Holding Ltd. showed that the firm now holds a total of 9,000,000 shares or roughly 7.22% of the outstanding WB shares. This means their shares have reduced by 0 from the 9,000,000 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, Invesco Hong Kong Ltd. updated stake is worth $335,472,816. Details in the latest 13F filings reveal that Schroder Investment Management disposed off their -7.14% stake valued at $235,764,802 while Wells Capital Management, Inc. added theirs at $146,674,466. During the last quarter, Schroder Investment Management liquidated -429,288 of its shares in Weibo Corporation while Wells Capital Management, Inc. bought 238,421 shares. The ARGA Investment Management LP’s holdings currently number 2,356,888 shares at $96679545.76. According to the firm’s last 13F report, Citigroup Global Markets, Inc. shares in the company at filing stood at 2,244,482 shares, roughly $94,829,365.
WB Earnings Forecast For The Current Quarter
Weibo Corporation [WB] is expected to report weak earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $497.07M and an earnings per share of $0.71 for Dec 2020. Looking further ahead, the company is expected to report revenue of $395.52M at an EPS of $0.49 for Mar 2021. The estimates represent upside of 13.10% and 25.39% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
WB Earnings Estimates For The Current Year
For the financial year, Weibo Corporation [NASDAQ:WB] is expected to bring in revenue of $1.66B. The returns are nearly $-110.0 million lower than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 2.13, lower than that of FY19 by -$0.65. Estimates put this year’s earnings growth at -23.40%, 22.50% for the next, and at an annual 0.97% over the next 5-year period. As for sales, forecasts are for a decrease of -6.00% in the current fiscal year and a further 13.10% over the following year.