58.com Inc. (WUBA) Reaches New 52-Week Low After Earnings Miss
Shares of 58.com Inc. (NYSE:WUBA) reached a new 52-week low during trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $32.25 and last traded at $32.18, with a volume of 2,480,315 shares changing hands. The stock had previously closed at $33.35.
The company reported ($0.21) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.11) by $0.10. 58.com had a negative net margin of 9.27% and a negative return on equity of 5.02%. The company earned $306.50 million during the quarter, compared to the consensus estimate of $308.29 million. During the same period in the previous year, the firm posted ($0.50) EPS. The business’s quarterly revenue was up 44.0% compared to the same quarter last year.
WUBA has been the topic of a number of research reports. Brean Capital reaffirmed a “buy” rating on shares of 58.com in a research note on Tuesday, October 18th. Zacks Investment Research lowered shares of 58.com from a “hold” rating to a “sell” rating in a research report on Tuesday, August 23rd. Deutsche Bank AG began coverage on shares of 58.com in a research report on Wednesday, October 5th. They issued a “buy” rating and a $65.00 price objective on the stock. Finally, Credit Suisse Group AG lowered shares of 58.com from an “outperform” rating to a “neutral” rating in a research report on Friday. One analyst has rated the stock with a sell rating, six have assigned a hold rating and three have issued a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus target price of $63.67.
A number of hedge funds have recently bought and sold shares of WUBA. Gulf International Bank UK Ltd raised its stake in 58.com by 134.2% in the second quarter. Gulf International Bank UK Ltd now owns 20,770 shares of the company’s stock valued at $953,000 after buying an additional 11,900 shares during the period. Wellington Management Group LLP raised its stake in 58.com by 34.3% in the first quarter. Wellington Management Group LLP now owns 177,931 shares of the company’s stock valued at $9,902,000 after buying an additional 45,405 shares during the period. BlackRock Fund Advisors raised its stake in 58.com by 7.2% in the first quarter. BlackRock Fund Advisors now owns 494,489 shares of the company’s stock valued at $27,518,000 after buying an additional 33,215 shares during the period. Jericho Capital Asset Management L.P. purchased a new stake in 58.com during the first quarter valued at about $21,201,000. Finally, Sumitomo Mitsui Trust Holdings Inc. raised its stake in 58.com by 65.3% in the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 186,031 shares of the company’s stock valued at $8,537,000 after buying an additional 73,476 shares during the period. 47.18% of the stock is currently owned by hedge funds and other institutional investors.
The stock’s market cap is $4.69 billion. The stock has a 50 day moving average of $44.55 and a 200-day moving average of $48.06.
58.com Company Profile
58.com Inc is a holding company. The Company’s business consists of its online classifieds and listing platforms. Its online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke.
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