Weibo (NASDAQ:WB) Shares Gap Down – Should You Sell?

Weibo Co. (NASDAQ:WB)’s stock price gapped down prior to trading on Friday . The stock had previously closed at $10.46, but opened at $10.17. Weibo shares last traded at $10.22, with a volume of 29,212 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on WB. Nomura Securities raised shares of Weibo to a “hold” rating in a research note on Monday, August 26th. Morgan Stanley lowered their price objective on Weibo from $8.00 to $7.50 and set an “underweight” rating for the company in a research report on Friday, August 23rd. Benchmark restated a “hold” rating on shares of Weibo in a research report on Wednesday, November 20th. Citigroup upped their price target on Weibo from $11.00 to $12.00 and gave the company a “buy” rating in a research note on Monday, September 30th. Finally, StockNews.com raised Weibo from a “hold” rating to a “buy” rating in a research report on Friday, December 6th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and three have given a buy rating to the stock. According to data from MarketBeat.com, Weibo currently has a consensus rating of “Hold” and an average price target of $10.23.

Weibo Price Performance

The company has a market capitalization of $2.43 billion, a PE ratio of 7.10 and a beta of 0.27. The company has a debt-to-equity ratio of 0.51, a current ratio of 3.57 and a quick ratio of 3.57. The stock’s 50 day simple moving average is $9.38 and its 200-day simple moving average is $8.56.

Institutional Trading of Weibo

Several hedge funds have recently modified their holdings of the stock. Seven Eight Capital LP purchased a new stake in Weibo during the 2nd quarter worth about $110,000. Creative Planning acquired a new position in shares of Weibo during the third quarter worth about $112,000. Connor Clark & Lunn Investment Management Ltd. increased its stake in shares of Weibo by 17.4% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 13,261 shares of the information services provider’s stock worth $134,000 after buying an additional 1,970 shares during the period. Diversified Trust Co acquired a new stake in Weibo in the third quarter valued at approximately $194,000. Finally, Franklin Resources Inc. raised its holdings in Weibo by 16.5% in the third quarter. Franklin Resources Inc. now owns 27,464 shares of the information services provider’s stock valued at $266,000 after acquiring an additional 3,884 shares in the last quarter. 68.77% of the stock is currently owned by institutional investors and hedge funds.

Weibo Company Profile

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People’s Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform.