Hello Group (NASDAQ:MOMO) Shares Gap Up – Here’s Why

Hello Group Inc. (NASDAQ:MOMO)’s share price gapped up before the market opened on Friday . The stock had previously closed at $6.32, but opened at $6.58. Hello Group shares last traded at $6.64, with a volume of 29,100 shares.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on MOMO shares. Bank of America downgraded shares of Hello Group from a “buy” rating to an “underperform” rating in a research note on Wednesday, November 6th. StockNews.com upgraded shares of Hello Group from a “sell” rating to a “hold” rating in a research report on Wednesday. Benchmark dropped their price objective on Hello Group from $15.00 to $13.00 and set a “buy” rating on the stock in a research note on Wednesday, September 4th. Finally, Jefferies Financial Group boosted their target price on Hello Group from $6.50 to $7.00 and gave the company a “buy” rating in a research note on Tuesday, September 3rd. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $7.93.

Hello Group Stock Up 2.0 %

The company has a debt-to-equity ratio of 0.17, a current ratio of 2.55 and a quick ratio of 2.55. The firm has a 50-day moving average of $7.01 and a 200 day moving average of $6.53. The stock has a market capitalization of $980.97 million, a price-to-earnings ratio of 6.64, a PEG ratio of 2.03 and a beta of 0.54.

Hello Group (NASDAQ:MOMO) last issued its earnings results on Tuesday, September 3rd. The information services provider reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $0.25 by $2.13. The business had revenue of $2.69 billion for the quarter, compared to the consensus estimate of $2.67 billion. Hello Group had a net margin of 12.40% and a return on equity of 12.09%. The firm’s revenue for the quarter was down 14.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.39 earnings per share. As a group, sell-side analysts forecast that Hello Group Inc. will post 0.73 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Tidal Investments LLC bought a new stake in Hello Group in the 3rd quarter valued at about $138,000. Public Employees Retirement System of Ohio acquired a new position in Hello Group in the 3rd quarter valued at $1,013,000. XTX Topco Ltd raised its holdings 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 valued at $401,000 after acquiring an additional 25,700 shares in the last quarter. Quadrature Capital Ltd lifted its position in shares of 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 acquiring an additional 19,909 shares during the period. Finally, Polymer Capital Management HK LTD bought a new position in shares of Hello Group in the third quarter worth $894,000. Institutional investors and hedge funds own 50.96% of the company’s stock.

About Hello Group

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.