Momo (MOMO) Rating Lowered to Hold at Zacks Investment Research

Momo (NASDAQ:MOMO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday, Zacks.com reports.

According to Zacks, “Momo Inc. provides mobile-based social networking platform primarily in the Peoples Republic of China. Its platform includes mobile applications and related features, functionalities, tools and services. The Company offers two types of mobile game services non-exclusive mobile game services and exclusive mobile game services. It also provides membership subscription and other services which include paid emoticons and mobile marketing services. Momo Inc. is headquartered in Beijing, the Peoples Republic of China. “

Several other brokerages also recently issued reports on MOMO. BidaskClub upgraded Momo from a “hold” rating to a “buy” rating in a report on Tuesday, January 22nd. Morgan Stanley upgraded Momo from an “equal weight” rating to an “overweight” rating and increased their price target for the stock from $33.00 to $44.00 in a report on Wednesday, March 13th. Nomura increased their price target on Momo from $41.00 to $47.00 and gave the stock a “buy” rating in a report on Wednesday, March 13th. Finally, ValuEngine downgraded Momo from a “hold” rating to a “sell” rating in a report on Friday, May 10th. Two analysts have rated the stock with a sell rating, two have issued a hold rating and eight have given a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average price target of $46.11.

Shares of Momo stock opened at $26.64 on Wednesday. Momo has a 1 year low of $22.85 and a 1 year high of $54.24. The stock has a market capitalization of $5.55 billion, a price-to-earnings ratio of 13.59, a price-to-earnings-growth ratio of 0.49 and a beta of 2.07. The company has a quick ratio of 4.69, a current ratio of 4.69 and a debt-to-equity ratio of 0.44.

Momo (NASDAQ:MOMO) last announced its quarterly earnings results on Tuesday, March 12th. The information services provider reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.17. Momo had a return on equity of 30.62% and a net margin of 21.19%. The company had revenue of $559.10 million during the quarter, compared to the consensus estimate of $536.45 million. During the same period in the prior year, the company earned $0.53 earnings per share. The company’s revenue for the quarter was up 44.7% compared to the same quarter last year. On average, research analysts predict that Momo will post 2.38 EPS for the current fiscal year.

Several hedge funds have recently bought and sold shares of the company. Quadrant Capital Group LLC boosted its position in shares of Momo by 21.5% during the first quarter. Quadrant Capital Group LLC now owns 1,694 shares of the information services provider’s stock worth $64,000 after buying an additional 300 shares during the period. Shell Asset Management Co. boosted its position in shares of Momo by 0.9% during the first quarter. Shell Asset Management Co. now owns 52,835 shares of the information services provider’s stock worth $2,020,000 after buying an additional 467 shares during the period. Advisors Asset Management Inc. boosted its position in shares of Momo by 76.3% during the fourth quarter. Advisors Asset Management Inc. now owns 1,294 shares of the information services provider’s stock worth $31,000 after buying an additional 560 shares during the period. Financial Gravity Wealth Inc. acquired a new position in shares of Momo during the first quarter worth about $25,000. Finally, Intercontinental Wealth Advisors LLC boosted its position in shares of Momo by 6.6% during the first quarter. Intercontinental Wealth Advisors LLC now owns 10,540 shares of the information services provider’s stock worth $403,000 after buying an additional 648 shares during the period. 57.45% of the stock is owned by institutional investors.

About Momo

Momo Inc operates a mobile-based social and entertainment platform in the People's Republic of China. The company operates Momo platform that includes its Momo mobile application and various related features, functionalities, tools, and services to users, customers, and platform partners. It offers Momo mobile application that enables users to establish and expand their social relationships based on locations; interests; and recreational activities, including live talent shows, short videos, social games, and other video- and audio-based interactive experiences.

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