HUYA (NYSE:HUYA) Shares Gap Down Following Weak Earnings

HUYA Inc. Sponsored ADR (NYSE:HUYA) shares gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $3.28, but opened at $3.03. HUYA shares last traded at $3.0150, with a volume of 501,712 shares trading hands.

The company reported $0.01 EPS for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.01). The business had revenue of $250.68 million for the quarter, compared to analyst estimates of $251.85 million. HUYA had a positive return on equity of 0.50% and a negative net margin of 1.77%.

HUYA Dividend Announcement

The business also recently declared a special dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Wednesday, June 17th will be paid a $0.135 dividend. The ex-dividend date is Wednesday, June 17th. HUYA’s dividend payout ratio (DPR) is currently -4,766.67%.

HUYA declared that its board has authorized a share buyback plan on Wednesday, March 18th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. Morgan Stanley set a $3.40 target price on shares of HUYA in a research note on Wednesday, February 25th. Weiss Ratings restated a “sell (d-)” rating on shares of HUYA in a research note on Monday, April 27th. Finally, Zacks Research downgraded shares of HUYA from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 30th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $3.45.

Institutional Trading of HUYA

Several institutional investors have recently added to or reduced their stakes in HUYA. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in HUYA by 10.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 154,694 shares of the company’s stock worth $497,000 after buying an additional 14,456 shares during the period. SG Americas Securities LLC boosted its position in shares of HUYA by 92.1% in the third quarter. SG Americas Securities LLC now owns 85,796 shares of the company’s stock valued at $286,000 after acquiring an additional 41,138 shares during the period. Finally, Public Employees Retirement System of Ohio boosted its position in shares of HUYA by 8.6% in the third quarter. Public Employees Retirement System of Ohio now owns 245,295 shares of the company’s stock valued at $817,000 after acquiring an additional 19,353 shares during the period. 23.20% of the stock is currently owned by institutional investors.

HUYA Stock Down 7.8%

The firm has a market capitalization of $676.18 million, a price-to-earnings ratio of -50.32 and a beta of 0.94. The company’s 50 day moving average is $3.26 and its 200 day moving average is $3.30.

About HUYA

HUYA Inc is a leading interactive live streaming platform based in Guangzhou, China, primarily focused on video game and esports content. The company operates a proprietary technology platform that enables users to broadcast and view live gameplay, participate in real-time chat, and engage with hosts through virtual gifting. Its services are accessible via web browsers, desktop applications and mobile apps for both iOS and Android.

At the core of HUYA’s business are user-generated live streams hosted by professional gamers, influencers and esports organizations.