Hello Group (NASDAQ:MOMO) Shares Gap Up – Still a Buy?

Shares of Hello Group Inc. (NASDAQ:MOMO) gapped up prior to trading 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 changing hands.

Wall Street Analysts Forecast Growth

MOMO has been the subject of a number of analyst reports. Benchmark reduced their price objective on shares of Hello Group from $15.00 to $13.00 and set a “buy” rating for the company in a report on Wednesday, September 4th. StockNews.com raised Hello Group from a “sell” rating to a “hold” rating in a report on Wednesday. Bank of America cut Hello Group from a “buy” rating to an “underperform” rating in a report on Wednesday, November 6th. Finally, Jefferies Financial Group upped their target price 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. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat.com, Hello Group presently has an average rating of “Hold” and a consensus price target of $7.93.

Hello Group Price Performance

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

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

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. BRIGHT VALLEY CAPITAL Ltd acquired a new position in Hello Group in the second quarter valued at approximately $22,553,000. Dimensional Fund Advisors LP raised its position in shares of Hello Group by 20.6% during the 2nd quarter. Dimensional Fund Advisors LP now owns 3,716,809 shares of the information services provider’s stock valued at $22,736,000 after acquiring an additional 633,746 shares during the last quarter. Blue Trust Inc. lifted its stake in shares of Hello Group by 472.1% in the 3rd quarter. Blue Trust Inc. now owns 3,873 shares of the information services provider’s stock valued at $29,000 after purchasing an additional 3,196 shares during the period. American Century Companies Inc. boosted its position in shares of Hello Group by 22.6% in the 2nd quarter. American Century Companies Inc. now owns 721,760 shares of the information services provider’s stock worth $4,417,000 after purchasing an additional 133,113 shares during the last quarter. Finally, Caxton Associates LP acquired a new stake in shares of Hello Group during the second quarter worth $2,628,000. Institutional investors 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.