Vipshop (NYSE:VIPS) Stock Falls 4.1% – Here’s Why

Vipshop Holdings Limited (NYSE:VIPS)’s stock price dropped 4.1% during mid-day trading on Wednesday. The company traded as low as $12.47 and last traded at $12.4250. Approximately 253,819 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 2,412,592 shares. The stock had previously closed at $12.96.

Wall Street Analyst Weigh In

Several brokerages have commented on VIPS. Barclays lowered their price objective on shares of Vipshop from $20.00 to $19.00 and set an “overweight” rating for the company in a research report on Thursday, August 27th. Wall Street Zen downgraded Vipshop from a “buy” rating to a “hold” rating in a report on Monday, August 24th. JPMorgan Chase & Co. decreased their price target on Vipshop from $21.00 to $17.00 and set an “overweight” rating on the stock in a research note on Thursday, September 10th. Morgan Stanley set a $16.00 price target on Vipshop in a research note on Wednesday, August 26th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Vipshop in a report on Friday, August 21st. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $17.16.

Vipshop Stock Performance

The company has a market capitalization of $6.11 billion, a P/E ratio of 4.22, a price-to-earnings-growth ratio of 1.98 and a beta of 0.57. The firm’s fifty day moving average is $13.00 and its 200-day moving average is $13.87.

Vipshop (NYSE:VIPS) last issued its quarterly earnings data on Wednesday, August 26th. The technology company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.59 by ($0.47). Vipshop had a net margin of 9.88% and a return on equity of 12.63%. The company had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.64 billion. As a group, analysts expect that Vipshop Holdings Limited will post 1.63 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Carmignac Gestion boosted its holdings in shares of Vipshop by 9.8% during the 2nd quarter. Carmignac Gestion now owns 4,920,324 shares of the technology company’s stock valued at $65,166,000 after acquiring an additional 439,795 shares in the last quarter. Hsbc Holdings PLC grew its position in Vipshop by 0.4% during the 1st quarter. Hsbc Holdings PLC now owns 2,327,725 shares of the technology company’s stock worth $36,592,000 after acquiring an additional 9,395 shares during the last quarter. SG Americas Securities LLC grew its position in Vipshop by 44.1% during the 1st quarter. SG Americas Securities LLC now owns 1,344,090 shares of the technology company’s stock worth $21,129,000 after acquiring an additional 411,123 shares during the last quarter. Lazard Asset Management LLC increased its holdings in Vipshop by 0.9% in the 1st quarter. Lazard Asset Management LLC now owns 970,371 shares of the technology company’s stock worth $15,254,000 after purchasing an additional 8,470 shares in the last quarter. Finally, Wellington Management Group LLP increased its holdings in Vipshop by 15.0% in the 2nd quarter. Wellington Management Group LLP now owns 702,863 shares of the technology company’s stock worth $9,320,000 after purchasing an additional 91,892 shares in the last quarter. 48.82% of the stock is currently owned by institutional investors and hedge funds.

Vipshop Company Profile

Vipshop Holdings Limited (NYSE: VIPS) operates an online discount retail platform in China. Through its Vipshop website and mobile applications, the company offers branded products at promotional prices, with a focus on limited-time and seasonal sales.

Its product categories include apparel, footwear, accessories, beauty and personal-care products, home goods, consumer electronics, and other lifestyle merchandise. Vipshop sources products from brand owners, retailers, and other suppliers, and supports transactions through online retail, warehousing, fulfillment, and customer-service operations.

Founded in 2008 and headquartered in Guangzhou, China, Vipshop primarily serves consumers in mainland China.