Taking into account all relevant factors, Weibo Corporation (NASDAQ:WB) scores 40% Buy on the technical side. The share price is also flashing a Buy from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for WB averaged 50% Buy with an average daily trading volume over the past 20 days at 1485390 shares. Those using medium-term investment strategies, the 50-day average daily volume remained almost 1899896 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was 1833921 shares, is signaling50% Buy for long term investors.
The stock is lingering around the initial support level of $49.58. After this, the following support is at the zone of $48.78. Up until the time the WB stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 53.04 on the daily chart, and this may be a cause for concern. In case the price goes below $48.78 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $51.12 level may cause a pull-back move approaching $51.86 mark.
Weibo Corporation (WB) is most likely going to rise 1.8 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $58 as 12-month high price target. This represents a whopping 19.76 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $49.35, which means a return possibility of 1.9 percent in comparison with the closing price of the stock of $48.43 in recent trading session. The lowest price set for the stock is $39 which is just above -19.47 percent from WB share’s price at the end of session.
Let’s take a glimpse at some insider activity at Weibo Corporation (NASDAQ:WB) and observe the pattern. The earliest insider trade happened on 12/08/2008. CUMMINGS STEPHEN E parted with a total of 130.24 thousand shares of the firm at average share price of $6.13. The total amount for the sale was set at $798.37 thousand. On completing this exchange, the SEVP & Head CIB account balance was 171.8 thousand shares. The stock grew 691.52 percent from that insider sale. On 11/20/2008, GOODWIN WILLIAM H JR, Director, did a sale of 500 thousand shares at a price of $5.08 per share. This got rid of 2.54 million shares from the insider’s fortune and the stock experienced a 855.12 percent rally in price since the news became public. This exchange saw 2.05 million shares get out from the Director account. On 09/15/2008, Director GOODWIN WILLIAM H JR recorded a purchase transaction valued at $11 million. The purchase at $11 a share has added 1 million shares into the insider’s portfolio position. Meanwhile, shares price witnessed 341.09 percent increase since the transaction reporting date. The company insider is left with 2.55 million shares remaining in the account. BAKER JOHN D II, who works as Director at the company, performed a purchase of 25 thousand shares in a transaction worth $306.25 thousand. The acquisition recorded on 09/15/2008 was priced at $12.25 per share. The stock price soared 296.08 percent since the transaction. BAKER JOHN D II currently holds a stake of 25 thousand in WB stock which is worth $1.21 million after the insider buying.
In the recent trading session, Weibo Corporation (NASDAQ:WB) shares lost -3.85% or -1.94 points to reach at $48.43 with a thin trading volume of 1.026 million shares. It opened the trading session at $50.73, the shares rose to $51.07 and dropped to $49.53, the range by which the price of stock traded the whole session. The company now has a market cap of $11.6 billion and currently has 230.36 million outstanding shares. Weibo Corporation (WB) stock has accumulated 15.71 percent of market value in 21 trading days.
Stock analysts at CLSA cut their rating on shares of Weibo Corporation (NASDAQ:WB) from Buy to a new rating of Outperform in their opinion released on November 15. Credit Suisse analysts have downgraded their rating of WB shares from Outperform to Neutral in a separate flash note to investors on November 14. Analysts at Jefferies issued an upgrade for the stock to Buy from previous rating of Hold, in a research note that dated back to October 18.
WB stock’s trailing 3-year beta is 2.08, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $2.44 share in the trailing 52 weeks. The stock’s value surged 8.67 percent year to date (YTD) compared to a decline of -7.85 percent in 52 week’s period. The firm’s shares are still trading -35.15 percent below its 1-year high of $74.68 and 41.34 percent up from 52-week low of $34.26. The average consensus ranking on the company is 2.3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.
Weibo Corporation (WB) shares are trading at a P/E ratio of 19.22 times earnings posted in the trailing 12 months. The industry WB deals with has an average P/E of 31.6. Its P/B ratio is standing at 6.26X compared to the 6.77 industry average. It is additionally sporting a 3.09 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.34. Weibo Corporation has a 82% gross profit margin, with its operating margin around 32.2%. Alongside this, the company’s net profit margin currently stands at 31.8%.
Past records have indicated that shares in Weibo Corporation declined on 12 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of WB’s Q4 earnings on March 17. Analysts are predicting revenue to suffer decline of -1.7 percent to $474M in the financial fourth quarter, while EPS will soar by about -8.75 percent to $0.73 per share. In the last quarter, it’s earnings of $0.68 per share came worse than the $0.73159, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $481.88M, topping the $481.52M analysts had expected. Earnings are seen to rise by 57.1 percent this year, 5.07 percent in the coming year and the trend continues by 5.83 percent every year in the next 5 years.