Sina Corp. (SINA) Downgraded by Zacks Investment Research
Sina Corp. (NASDAQ:SINA) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “SINA Corp. posted third-quarter 2016 results wherein non-GAAP earnings of $0.56 per share and net revenue of $274.9 million grew 43.6% and 21.5% year over year, respectively. The upside was driven by a 21% rise in advertising revenues, primarily due to continued strength in Weibo offerings. The company is taking a number of initiatives to further increase monetization on Weibo. It has already initiated live video streaming on the platform, which is expected to be an important growth factor as mobile users in China are on the rise. Recently, to unlock more value for SINA shareholders, the company announced that it will give away its Weibo stock on a pro rata basis. Apart from Weibo, other key growth drivers include a strong product pipeline and a robust user base for its e-commerce offerings. However, the company’s business is likely to be impacted by soft macroeconomic conditions in the region.”
Other research analysts have also recently issued reports about the company. Jefferies Group reissued a “buy” rating and set a $67.00 price objective on shares of Sina Corp. in a report on Monday, August 29th. TheStreet raised Sina Corp. to a “buy” rating in a report on Friday, August 19th. Brean Capital reaffirmed a “buy” rating on shares of Sina Corp. in a report on Tuesday, August 16th. Citigroup Inc. initiated coverage on Sina Corp. in a report on Friday, August 5th. They issued a “buy” rating and a $69.00 price target for the company. Finally, JPMorgan Chase & Co. reaffirmed an “overweight” rating on shares of Sina Corp. in a report on Wednesday, August 31st. Three equities research analysts have rated the stock with a hold rating and six have given a buy rating to the stock. The company has an average rating of “Buy” and a consensus target price of $61.37.
Sina Corp. (NASDAQ:SINA) traded up 2.58% during trading on Monday, hitting $79.48. 1,866,803 shares of the stock traded hands. Sina Corp. has a 52 week low of $39.58 and a 52 week high of $85.24. The firm’s 50-day moving average is $73.29 and its 200 day moving average is $64.02. The stock has a market cap of $5.60 billion, a P/E ratio of 27.18 and a beta of 1.40.
Sina Corp. (NASDAQ:SINA) last issued its quarterly earnings data on Monday, November 21st. The company reported $0.56 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.35 by $0.21. The company earned $272.30 million during the quarter, compared to analysts’ expectations of $265.30 million. Sina Corp. had a return on equity of 5.05% and a net margin of 22.57%. The business’s revenue was up 21.5% on a year-over-year basis. During the same period last year, the business earned $0.39 earnings per share. Equities research analysts forecast that Sina Corp. will post $1.21 earnings per share for the current fiscal year.
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A number of hedge funds have recently made changes to their positions in the company. Platinum Investment Management Ltd. raised its stake in shares of Sina Corp. by 21.4% in the second quarter. Platinum Investment Management Ltd. now owns 5,211,734 shares of the company’s stock worth $270,332,000 after buying an additional 918,532 shares during the last quarter. Schroder Investment Management Group raised its stake in shares of Sina Corp. by 159.0% in the second quarter. Schroder Investment Management Group now owns 4,013,943 shares of the company’s stock worth $208,203,000 after buying an additional 2,464,232 shares during the last quarter. Hsbc Holdings PLC raised its stake in shares of Sina Corp. by 39.3% in the third quarter. Hsbc Holdings PLC now owns 1,774,160 shares of the company’s stock worth $130,986,000 after buying an additional 500,400 shares during the last quarter. Hillhouse Capital Management Ltd. purchased a new stake in shares of Sina Corp. during the third quarter worth approximately $104,854,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in shares of Sina Corp. during the third quarter worth approximately $42,854,000. Hedge funds and other institutional investors own 60.52% of the company’s stock.
About Sina Corp.
Sina Corporation is an online media company serving China and the global Chinese communities. The Company’s digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile applications) and Weibo (social media) enables Internet users to access professional media and user generated content (UGCs) in multi-media formats from personal computers and mobile devices, and share their interests with friends and acquaintances.
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