Hello Group (NASDAQ:MOMO) Shares Gap Down After Earnings Miss

Shares of Hello Group Inc. (NASDAQ:MOMO) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $7.42, but opened at $6.57. Hello Group shares last traded at $7.01, with a volume of 1,409,806 shares trading hands.

The information services provider reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.14). Hello Group had a return on equity of 11.41% and a net margin of 11.98%.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. StockNews.com upgraded shares of Hello Group from a “sell” rating to a “hold” rating in a research report on Wednesday, November 27th. Citigroup increased their price target on shares of Hello Group from $5.90 to $7.00 and gave the stock a “neutral” rating in a report on Tuesday, December 10th. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $8.25.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Norges Bank bought a new stake in Hello Group in the fourth quarter valued at $10,765,000. Assenagon Asset Management S.A. bought a new stake in shares of Hello Group during the 4th quarter valued at about $8,616,000. American Century Companies Inc. grew its stake in shares of Hello Group by 4.7% during the 4th quarter. American Century Companies Inc. now owns 912,611 shares of the information services provider’s stock valued at $7,036,000 after acquiring an additional 40,620 shares during the period. BNP Paribas Financial Markets bought a new position in shares of Hello Group during the 4th quarter valued at approximately $4,535,000. Finally, Northern Trust Corp lifted its holdings in Hello Group by 53.3% in the 4th quarter. Northern Trust Corp now owns 390,686 shares of the information services provider’s stock worth $3,012,000 after purchasing an additional 135,879 shares in the last quarter. Institutional investors own 50.96% of the company’s stock.

Hello Group Trading Down 5.2 %

The stock has a market capitalization of $1.02 billion, a P/E ratio of 7.18, a P/E/G ratio of 2.07 and a beta of 0.44. The business has a 50-day moving average price of $7.39 and a 200 day moving average price of $7.11.

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.