The stock of Hello Group Inc ADR (NASDAQ: MOMO) has decreased by -4.95 when compared to last closing price of 6.87.Despite this, the company has seen a loss of -10.18% in its stock price over the last five trading days. seekingalpha.com reported 2024-09-24 that MOMO is significantly undervalued compared to peers, with a P/E ratio of 5x TTM Non-GAAP earnings and 2x TTM EBITDA, indicating a strong buy opportunity. Hello Group’s expertise in app development and its presence in China’s massive market offer substantial growth potential, especially with new applications and immersive experiences. The stock repurchase program, recently upsized, suggests confidence from directors and could drive stock price appreciation through increased demand.
Is It Worth Investing in Hello Group Inc ADR (NASDAQ: MOMO) Right Now?
Hello Group Inc ADR (NASDAQ: MOMO) has a price-to-earnings ratio of 6.57x that is above its average ratio. Additionally, the 36-month beta value for MOMO is 0.53. There are mixed opinions on the stock, with 10 analysts rating it as a “buy,” 5 rating it as “overweight,” 1 rating it as “hold,” and 0 rating it as “sell.”
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The public float for MOMO is 136.04M and currently, short sellers hold a 2.98% ratio of that float. The average trading volume of MOMO on October 17, 2024 was 1.45M shares.
MOMO’s Market Performance
MOMO stock saw an increase of -10.18% in the past week, with a monthly gain of 2.19% and a quarterly increase of -0.61%. The volatility ratio for the week is 3.20%, and the volatility levels for the last 30 days are 4.09% for Hello Group Inc ADR (MOMO). The simple moving average for the past 20 days is -10.00% for MOMO’s stock, with a 6.17% simple moving average for the past 200 days.
Analysts’ Opinion of MOMO
Many brokerage firms have already submitted their reports for MOMO stocks, with JP Morgan repeating the rating for MOMO by listing it as a “Neutral.” The predicted price for MOMO in the upcoming period, according to JP Morgan is $6 based on the research report published on June 03, 2024 of the current year 2024.
UBS gave a rating of “Buy” to MOMO, setting the target price at $12.50 in the report published on April 28th of the previous year.
MOMO Trading at -4.82% from the 50-Day Moving Average
After a stumble in the market that brought MOMO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -20.27% of loss for the given period.
Volatility was left at 4.09%, however, over the last 30 days, the volatility rate increased by 3.20%, as shares surge +0.31% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.27% lower at present.
During the last 5 trading sessions, MOMO fell by -10.59%, which changed the moving average for the period of 200-days by -3.42% in comparison to the 20-day moving average, which settled at $7.25. In addition, Hello Group Inc ADR saw 3.12% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at MOMO starting from LI WANG, who proposed sale 226,013 shares at the price of $7.14 back on Sep 26 ’24. After this action, LI WANG now owns shares of Hello Group Inc ADR, valued at $1,613,575 using the latest closing price.
LI WANG, the Officer of Hello Group Inc ADR, proposed sale 130,827 shares at $7.03 during a trade that took place back on Sep 25 ’24, which means that LI WANG is holding shares at $919,243 based on the most recent closing price.
Stock Fundamentals for MOMO
Current profitability levels for the company are sitting at:
- 0.19 for the present operating margin
- 0.41 for the gross margin
The net margin for Hello Group Inc ADR stands at 0.12. The total capital return value is set at 0.15. Equity return is now at value 12.48, with 8.46 for asset returns.
Based on Hello Group Inc ADR (MOMO), the company’s capital structure generated 0.25 points at debt to capital in total, while cash flow to debt ratio is standing at 0.49. The debt to equity ratio resting at 0.34. The interest coverage ratio of the stock is 21.96.
Currently, EBITDA for the company is 2.79 billion with net debt to EBITDA at -0.83. When we switch over and look at the enterprise to sales, we see a ratio of 0.53. The receivables turnover for the company is 61.12for trailing twelve months and the total asset turnover is 0.65. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.55.
Conclusion
In conclusion, Hello Group Inc ADR (MOMO) has seen mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
