Why Weibo Corporation (WB) Stock Wiped Out -3.5% Today

Weibo Corporation (NASDAQ:WB) is a stock to watch today. At current price of $42.65, the shares have already lost -1.55 points (-3.5% lower) from its previous close of $44.2. The stock sets an active trading volume day with a reported 768095 contracts so far this session. WB shares had a relatively better volume day versus average trading capacity of 2.09 million shares, but with a 17 million float and a 3.05% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for WB stock indicates that the average analyst price target is $71.77 per share. This means the stock has a potential increase of 68.28% from where the WB share price has been trading recently which is between $43.795 and $45.39. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $42.

The shorts are climbing into Weibo Corporation (WB) stock. The latest set of short interest data was released on 31 May 2019, and the numbers show a rise in short interest in WB shares. While short interest still represents only 43.61% of WB’s float, the number of shares shorted have risen by 3899395. The number of shares shorted advanced to 11839419 shares, up from 7940024 shares during the preceding fortnight. With average daily trading volumes at 3670393 shares, days to cover decreased to about 5.591413 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Why Weibo Stock Plunged 39.4% in May” and dated June 11, 2019.

During the recent trading session for Weibo Corporation (NASDAQ:WB), the company witnessed their stock rise $1.33 over a week and tumble down $-16.46 from the price 20 days ago. When compared to their established 52-week high of $112.03, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 06/14/18. The recent low of $40.31 stood for a -61.93% since 05/06/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.29 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Weibo Corporation, the two-week RSI stands at 29.61. This figure suggests that WB stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current WB readings is similarly very revealing as it has a stochastic reading of 32.17% at this stage. This figure means that WB share price today is being neutral.

Technical chart claims that Weibo Corporation (WB) would settle between $45.13/share to $46.06/share level. However, if the stock price goes below the $43.53 mark, then the market for Weibo Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $42.87 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.02. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at JP Morgan lowered their recommendation on shares of WB from Overweight to Neutral in their opinion released on May 28. The Benchmark Company analysts again handed out a Buy recommendation to Weibo Corporation (NASDAQ:WB) stock but they lifted target price for the shares in a flash note issued to investors on May 24. The target price has been raised from $81 to $51. Analysts at HSBC Securities lowered the stock to a Reduce call from its previous Hold recommendation, in a research note that dated back to May 24.

WB equity has an average rating of 2.24, with the figure leaning towards a bullish end. 25 analysts who tracked the company were contacted by Reuters. Amongst them, 10 rated the stock as a hold while the remaining 15 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 14 analysts rated Weibo Corporation (NASDAQ:WB) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, WB stock price is currently trading at 13.76X forward 12-month Consensus EPS estimates, and its P/S ratio is 5.63 while for the average stock in the same group, the multiple is 5.7. Weibo Corporation current P/E ratio of 16.51 means it is trading at a discount against its industry’s 38.24. In the past 5 years, this ratio for the stock has been fluctuating between 23.78 and 122.3.

Weibo Corporation (WB)’s current-quarter revenues are projected to climb by nearly 0.73% to hit $429690, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 10.52% from $1.72 billion to a noteworthy $1.9 billion. At the other end of the current quarter income statement, Weibo Corporation is expected to see its adjusted earnings surge by roughly -4.41% to hit $0.65 per share. For the fiscal year, WB’s earnings are projected to climb by roughly 3.3% to hit $2.82 per share.