StockNews.com Downgrades Hello Group (NASDAQ:MOMO) to Sell

StockNews.com cut shares of Hello Group (NASDAQ:MOMO) from a hold rating to a sell rating in a report published on Tuesday.

Several other brokerages have also commented on MOMO. Jefferies Financial Group raised their price objective on shares of Hello Group from $6.50 to $7.00 and gave the stock a “buy” rating in a report on Tuesday, September 3rd. Benchmark lowered their target price on Hello Group from $15.00 to $13.00 and set a “buy” rating for the company in a research note on Wednesday, September 4th. Finally, Bank of America cut Hello Group from a “buy” rating to an “underperform” rating in a research note on Wednesday, November 6th. Three equities research analysts have rated the stock with a sell rating, two have issued a hold rating and two have assigned a buy rating to the company’s stock. According to MarketBeat, Hello Group currently has an average rating of “Hold” and a consensus target price of $7.93.

Hello Group Price Performance

MOMO opened at $6.68 on Tuesday. The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.55 and a current ratio of 2.55. The stock has a market capitalization of $967.93 million, a PE ratio of 6.68, a price-to-earnings-growth ratio of 2.05 and a beta of 0.54. The stock’s 50 day moving average price is $6.98 and its 200-day moving average price is $6.51. Hello Group has a 52-week low of $4.79 and a 52-week high of $8.19.

Hello Group (NASDAQ:MOMO) last issued its quarterly earnings data on Tuesday, September 3rd. The information services provider reported $2.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.25 by $2.13. Hello Group had a net margin of 12.40% and a return on equity of 12.09%. The business had revenue of $2.69 billion for the quarter, compared to the consensus estimate of $2.67 billion. During the same period in the previous year, the firm earned $0.39 EPS. The company’s quarterly revenue was down 14.2% compared to the same quarter last year. On average, equities research analysts predict that Hello Group will post 0.73 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio purchased a new stake in shares of Hello Group in the third quarter worth $1,013,000. XTX Topco Ltd boosted its stake in Hello Group by 95.1% in the 3rd quarter. XTX Topco Ltd now owns 52,720 shares of the information services provider’s stock worth $401,000 after purchasing an additional 25,700 shares in the last quarter. Quadrature Capital Ltd grew its position in Hello Group by 40.2% during the 3rd quarter. Quadrature Capital Ltd now owns 69,492 shares of the information services provider’s stock valued at $528,000 after purchasing an additional 19,909 shares during the last quarter. Polymer Capital Management HK LTD bought a new stake in Hello Group during the 3rd quarter valued at about $894,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Hello Group by 105.9% in the third quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 21,030 shares of the information services provider’s stock worth $160,000 after buying an additional 10,818 shares during the last quarter. Institutional investors own 50.96% of the company’s stock.

Hello Group Company Profile

Hello Group Inc provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names.