The stock of Weibo Corporation (NASDAQ:WB) is now priced at $38.45 and the shares are 1.15 points up or 3.08% higher compared to its previous closing price of $37.3. The stock had 1.065 million contracts set over the past session. WB shares’ daily volume is compared to its average trading volume at 1.579 million shares. However, it has a float of 114 million and although its performance was 7.16% over the week, it’s one to watch. Analysts have given the WB stock a yearly average price target of $41.77 per share. It means the stock’s upside potential is 8.63% with the WB share price recently placing at $36.92 to $38.49. However, some brokerage firms have priced the stock below the average, including one that has called $38.6.
The shorts are running away from the Weibo Corporation stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the WB shares have declined. Short interest in the stock represents just 10.5% of its float, but the volume has dropped by -313072. The volume of shorted shares dropped to 11.952 million from 12.265 million shares over the last two weeks. The average intraday trading volume has been 815739 shares, which means that days to cover moved to roughly 14.651194.
In the last trading session, Weibo Corporation (NASDAQ:WB) raised by $2.57 over the week and gained $2.98 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $55.52. The stock recorded its established 52-week high on 11/08/19.
Since 05/29/20, the stock has traded to a low of $28.93 at 32.91%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.64. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Weibo Corporation’s two-week RSI is 61.69. This suggests that the stock is neutral at the moment and that WB shares’ price movement remains stable. The stochastic readings are equally revealing at 87.02% meaning the WB share price is currently in oversold territory.
The technical chart shows that the WB stock will likely settle at between $38.99 and $39.52 per share. However, if the stock dips below $37.42, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $36.38.
Currently, the stock is trading in the green of MACD, with a reading of 1.99. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Barclays cut their recommendation for WB from Overweight to Equal Weight in April 22 review while maintai their target price of $47 to $40. CLSA analysts downgraded their recommendation of the stock from Buy to Outperform in a flash note released to investors on November 15. Credit Suisse seeing the stock struggling downgraded it from Outperform to Neutral on November 14.
The average rating for the WB equity is 2.3 and is currently gathering a bullish momentum. Of 22 analysts tracking Weibo Corporation polled by Reuters, 9 rated WB as a hold. The remaining 13 analysts were split evenly. However, the split wasn’t equal as a majority (12) rated it as a buy or strong buy. 1 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the WB stock price is 14.65X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 22 below the group’s average of 44.7. Weibo Corporation has its P/E ratio at 3.8, which means that the stock is currently trading at a discount relative to the 6.1 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Weibo Corporation (NASDAQ:WB) will decrease by about -99.88%, which will see them reach $380 million. The company’s full-year revenues are, however, expected to diminish by about -6.21%, down from $1770 million to $1660 million. WB’s expected adjusted earnings should drop almost -32.35% to end up at $0.46 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -24.46% to record $2.1/share.