iQIYI (NASDAQ:IQ) Shares Down 7.9% – Here’s Why

Shares of iQIYI, Inc. Sponsored ADR (NASDAQ:IQ) were down 7.9% during trading on Tuesday . The company traded as low as $1.24 and last traded at $1.2250. 2,048,480 shares traded hands during mid-day trading, a decline of 76% from the average daily volume of 8,569,120 shares. The stock had previously closed at $1.33.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on IQ shares. Weiss Ratings reissued a “sell (d)” rating on shares of iQIYI in a report on Wednesday, June 24th. Wall Street Zen cut iQIYI from a “hold” rating to a “sell” rating in a report on Sunday, April 26th. Zacks Research upgraded shares of iQIYI from a “strong sell” rating to a “hold” rating in a research note on Monday, July 20th. Finally, Benchmark restated a “hold” rating on shares of iQIYI in a research note on Tuesday, May 19th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $2.55.

iQIYI Price Performance

The company’s 50-day moving average is $1.16 and its two-hundred day moving average is $1.32. The company has a debt-to-equity ratio of 0.79, a current ratio of 0.45 and a quick ratio of 0.45. The firm has a market cap of $1.17 billion, a P/E ratio of -12.12 and a beta of 0.19.

iQIYI (NASDAQ:IQ) last released its earnings results on Tuesday, August 18th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.03) by $0.01. The firm had revenue of $925.39 million for the quarter, compared to analyst estimates of $933.55 million. iQIYI had a negative net margin of 2.61% and a negative return on equity of 4.72%. Sell-side analysts anticipate that iQIYI, Inc. Sponsored ADR will post -0.03 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in IQ. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in iQIYI during the fourth quarter valued at approximately $8,488,000. Marshall Wace LLP lifted its stake in iQIYI by 1,423.3% during the fourth quarter. Marshall Wace LLP now owns 2,811,044 shares of the company’s stock worth $5,397,000 after purchasing an additional 2,626,502 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of iQIYI by 393.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,152,263 shares of the company’s stock valued at $4,864,000 after purchasing an additional 1,716,011 shares in the last quarter. Triata Capital Ltd acquired a new stake in shares of iQIYI in the 2nd quarter valued at $1,152,419,000. Finally, Catalyst Funds Management Pty Ltd bought a new position in shares of iQIYI in the 4th quarter valued at $1,205,000. 52.69% of the stock is owned by institutional investors.

About iQIYI

iQIYI, Inc is a leading online entertainment service provider headquartered in Beijing, China, offering a comprehensive portfolio of streaming video content across multiple genres. The company operates a subscription-based video-on-demand (SVOD) platform, complemented by advertising-supported content (AVOD) and pay-per-view offerings. Its digital library encompasses original series, feature films, variety shows, animation and documentaries, catering to diverse demographic segments and viewer preferences.

Originally launched by Baidu in 2010 as an online video site, iQIYI was formally rebranded in early 2012 and has since expanded its footprint beyond China’s domestic market.