iQIYI Inc. (NASDAQ: IQ) stock jumped 4.60% on Friday to $5.69 against a previous-day closing price of $5.44. With 22.74 million shares changed hands, the volume of the stock remained heavier than its average volume of 19.55 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $5.86 whereas the lowest price it dropped to was $5.44. The 52-week range on IQ shows that it touched its highest point at $7.10 and its lowest point at $1.65 during that stretch. It currently has a 1-year price target of $5.83. Beta for the stock currently stands at 0.48.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of IQ was down-trending over the past week, with a drop of -8.96%, but this was up by 52.14% over a month. Three-month performance surged to 167.14% while six-month performance rose 24.51%. The stock gained 17.56% in the past year, while it has gained 7.36% so far this year. A look at the trailing 12-month EPS for IQ yields -0.40 with Next year EPS estimates of 0.17. For the next quarter, that number is 0.02. This implies an EPS growth rate of 18.40% for this year and 525.00% for next year. EPS is expected to decline by -1.19% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 7.10%.
Float and Shares Shorts:
At present, 868.85 million IQ shares are outstanding with a float of 349.72 million shares on hand for trading. On Oct 13, 2022, short shares totaled 54.67 million, which was 6.35% higher than short shares on Sep 14, 2022. In addition to Dr. Tim Gong Yu as the firm’s Founder, CEO & Director, Mr. Jun Wang serves as its Chief Financial Officer.
Through their ownership of 61.06% of IQ’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.68% of IQ, in contrast to 16.38% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in IQ with 6.05% of the stake, Oasis Management holds 23,529,411 shares worth 23,529,411. A second-largest stockholder of IQ, Goldman Sachs & Co. LLC, holds 18,690,520 shares, controlling over 4.81% of the firm’s shares. Bank of America, NA is the third largest shareholder in IQ, holding 17,722,878 shares or 4.56% stake. With a 3.50% stake in IQ, the KraneShares CSI China Internet ET is the largest stakeholder. A total of 13,615,953 shares are owned by the mutual fund manager. The Vanguard Emerging Markets Stock I, which owns about 1.13% of IQ stock, is the second-largest Mutual Fund holder. It holds 4,382,927 shares valued at 23.23 million. Vanguard Total International Stoc holds 1.05% of the stake in IQ, owning 4,064,959 shares worth 21.54 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IQ since 25 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With IQ analysts setting a high price target of $69.48 and a low target of $20.06, the average target price over the next 12 months is $38.22. Based on these targets, IQ could surge 1121.09% to reach the target high and rise by 252.55% to reach the target low. Reaching the average price target will result in a growth of 571.7% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. IQ will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of $1.12 being high and $0.02 being low. For IQ, this leads to a yearly average estimate of $0.82. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. iQIYI Inc. surprised analysts by $0.01 when it reported $0.03 EPS against a consensus estimate of $0.02. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $0.61 and the low estimate is -$0.06. The average estimate for the next quarter is thus $0.42.