iQIYI (NASDAQ:IQ) Shares Gap Down – Should You Sell?

iQIYI, Inc. (NASDAQ:IQ)’s share price gapped down before the market opened on Wednesday . The stock had previously closed at $2.80, but opened at $2.66. iQIYI shares last traded at $2.70, with a volume of 4,964,261 shares traded.

Analysts Set New Price Targets

A number of equities research analysts recently commented on IQ shares. The Goldman Sachs Group downgraded shares of iQIYI from a “buy” rating to a “neutral” rating and set a $2.80 price objective for the company. in a research report on Tuesday, August 27th. Benchmark cut iQIYI from a “buy” rating to a “hold” rating in a research report on Friday, August 23rd. HSBC lowered iQIYI from a “hold” rating to a “reduce” rating and reduced their price target for the stock from $4.70 to $3.00 in a research note on Tuesday, July 23rd. Nomura Securities raised shares of iQIYI to a “hold” rating in a research report on Monday, August 26th. Finally, JPMorgan Chase & Co. dropped their price target on iQIYI from $5.00 to $3.00 and set a “neutral” rating for the company in a research note on Tuesday, July 23rd. One equities research analyst has rated the stock with a sell rating and four have assigned a hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $3.45.

iQIYI Price Performance

The business’s 50 day moving average price is $2.59 and its 200-day moving average price is $3.67. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.67. The company has a market cap of $2.46 billion, a PE ratio of 10.67, a price-to-earnings-growth ratio of 0.70 and a beta of 0.07.

iQIYI (NASDAQ:IQ) last released its earnings results on Thursday, August 22nd. The company reported $0.01 EPS for the quarter, missing the consensus estimate of $0.06 by ($0.05). The business had revenue of $1.03 billion for the quarter, compared to analysts’ expectations of $1.02 billion. iQIYI had a net margin of 5.37% and a return on equity of 14.57%. During the same quarter last year, the company posted $0.05 earnings per share. As a group, analysts forecast that iQIYI, Inc. will post 0.16 earnings per share for the current year.

Institutional Trading of iQIYI

Several institutional investors have recently added to or reduced their stakes in the business. Krane Funds Advisors LLC boosted its holdings in shares of iQIYI by 2.5% in the 4th quarter. Krane Funds Advisors LLC now owns 19,194,425 shares of the company’s stock valued at $93,669,000 after buying an additional 467,032 shares during the period. Vanguard Group Inc. raised its position in shares of iQIYI by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 17,756,701 shares of the company’s stock worth $86,653,000 after purchasing an additional 170,227 shares during the period. Genesis Investment Management LLP raised its position in shares of iQIYI by 112.1% during the 3rd quarter. Genesis Investment Management LLP now owns 16,582,183 shares of the company’s stock worth $47,425,000 after purchasing an additional 8,765,711 shares during the period. Federated Hermes Inc. lifted its holdings in shares of iQIYI by 18.9% in the 2nd quarter. Federated Hermes Inc. now owns 16,057,035 shares of the company’s stock worth $58,929,000 after purchasing an additional 2,549,287 shares during the last quarter. Finally, Maple Rock Capital Partners Inc. boosted its position in iQIYI by 65.4% during the 1st quarter. Maple Rock Capital Partners Inc. now owns 10,320,000 shares of the company’s stock valued at $43,654,000 after purchasing an additional 4,080,000 shares during the period. Institutional investors own 52.69% of the company’s stock.

About iQIYI

iQIYI, Inc, together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content.