Hello Group Inc. (NASDAQ: MOMO) stock fell -0.10% on Monday to $10.28 against a previous-day closing price of $10.29. With 1.81 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.32 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $10.46 whereas the lowest price it dropped to was $9.97. The 52-week range on MOMO shows that it touched its highest point at $10.97 and its lowest point at $3.96 during that stretch. It currently has a 1-year price target of $9.44. Beta for the stock currently stands at 0.80.
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 MOMO was down-trending over the past week, with a drop of -3.47%, but this was up by 23.71% over a month. Three-month performance surged to 135.24% while six-month performance rose 128.44%. The stock gained 23.04% in the past year, while it has gained 14.48% so far this year. A look at the trailing 12-month EPS for MOMO yields -2.42 with Next year EPS estimates of 1.38. For the next quarter, that number is 0.29. This implies an EPS growth rate of -254.70% for this year and 6.20% for next year. EPS is expected to grow by 4.22% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -13.66%.
Float and Shares Shorts:
At present, 195.51 million MOMO shares are outstanding with a float of 144.04 million shares on hand for trading. On Oct 13, 2022, short shares totaled 7.62 million, which was 3.85% higher than short shares on Sep 14, 2022. In addition to Mr. Yan Tang as the firm’s Exec. Chairman, Mr. Li Wang serves as its CEO & Director.
Through their ownership of 68.88% of MOMO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.03% of MOMO, in contrast to 24.96% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in MOMO with 6.63% of the stake, Renaissance Technologies LLC holds 10,111,698 shares worth 10,111,698. A second-largest stockholder of MOMO, Invesco Asset Management Ltd., holds 9,033,656 shares, controlling over 5.93% of the firm’s shares. Alibaba Group Holding Ltd. is the third largest shareholder in MOMO, holding 8,434,570 shares or 5.53% stake. With a 5.90% stake in MOMO, the Invesco Funds – Global Consumer T is the largest stakeholder. A total of 8,988,656 shares are owned by the mutual fund manager. The R Valor, which owns about 2.14% of MOMO stock, is the second-largest Mutual Fund holder. It holds 3,261,964 shares valued at 29.29 million. Vanguard Emerging Markets Stock I holds 1.34% of the stake in MOMO, owning 2,045,724 shares worth 18.37 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MOMO since 13 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 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 MOMO analysts setting a high price target of $139.47 and a low target of $48.82, the average target price over the next 12 months is $70.56. Based on these targets, MOMO could surge 1256.71% to reach the target high and rise by 374.9% to reach the target low. Reaching the average price target will result in a growth of 586.38% 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. MOMO will report FY 2022 earnings on 03/21/2024. Analysts have provided yearly estimates in a range of $8.98 being high and $6.73 being low. For MOMO, this leads to a yearly average estimate of $7.68. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Hello Group Inc. surprised analysts by $0.04 when it reported $0.32 EPS against a consensus estimate of $0.28. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $2.00 and the low estimate is $1.70. The average estimate for the next quarter is thus $1.87.