iQIYI (NASDAQ:IQ) Trading Up 7.7% - Here's What Happened

On Friday, shares of iQIYI, Inc. (NASDAQ:IQ - Get Free Report) experienced an increase of 7.7% during mid-day trading. The stock reached a high of $2.14 before closing at $2.16. In total, approximately 6,683,859 shares changed hands, marking a 57% decline in volume compared to the average daily trading volume of 15,722,672 shares. Prior to this trading activity, the stock had closed at $2.00.

Wall Street Analysts Forecast Growth

Various research firms have recently provided insights about iQIYI. For instance, Citigroup adjusted its price target for iQIYI shares from $3.00 down to $2.80, while maintaining a "buy" rating in a report published on January 16th. On the same day, HSBC changed its stance on iQIYI from "reduce" to "hold" and set a target price of $2.15. Additionally, OTR Global issued a report on January 8th reiterating its negative rating on iQIYI stock. Benchmark had previously restated a "hold" rating back on November 22nd. Currently, one analyst has given the stock a sell rating, six analysts have issued a hold rating, and one has assigned a buy rating, leading to a consensus rating of "Hold" with a target price averaging $2.91, according to MarketBeat.

iQIYI Trading Up 14.8%

The financial health of iQIYI shows a quick ratio of 0.45 and a current ratio of 0.45, while the debt-to-equity ratio stands at 0.65. The company boasts a market capitalization of approximately $2.20 billion, a P/E ratio of 11.49, and a price-to-earnings-growth (PEG) ratio of 3.15. Its stock beta is merely 0.02, indicating low volatility. When looking at further financial indicators, the 50-day simple moving average is $2.08, and the 200-day simple moving average is $2.52.

iQIYI's most recent quarterly earnings report was released on November 21st, where it posted earnings of $0.06 per share, beating market expectations of $0.04 by a margin of $0.02. The company also reported a return on equity of 13.26% and a net margin of 4.69%. In the same quarter of the previous year, iQIYI had reported earnings of $0.07 per share. Analysts have projected that for the current fiscal year, iQIYI will achieve an EPS of $0.14.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have made changes to their positions in iQIYI recently. For example, Garden State Investment Advisory Services LLC acquired a new stake valued at about $835,000. BNP Paribas Financial Markets increased its holdings by 77.1% in the last quarter, now owning a total of 1,871,931 shares valued at approximately $5,354,000 after acquiring 815,226 additional shares. Dimensional Fund Advisors LP also raised its holdings by 13.5%, owning 5,846,420 shares worth $21,443,000 after purchasing an additional 694,349 shares. Genesis Investment Management LLP amplified its position by 112.1%, now controlling 16,582,183 shares valued at about $47,425,000. Lastly, SG Americas Securities LLC expanded its stake significantly by 8,351.7%, now holding 1,005,249 shares worth around $2,875,000. Overall, approximately 52.69% of iQIYI's stock is owned by hedge funds and institutional investors.

iQIYI Company Profile

iQIYI, Inc., along with its subsidiaries, offers online entertainment video services primarily within the People's Republic of China. The company provides a wide range of products and services, including online video, online games, online literature, animations, and various other online content. Its platform features a diverse collection of internet video content, which includes professionally created content licensed from producers and content that is produced in-house.

Should You Invest $1,000 in iQIYI Right Now?

Before making an investment decision regarding iQIYI, it's advisable to consider the recommendations given by well-rated analysts. Currently, although iQIYI holds a “Hold” rating from the broader analyst community, top-performing analysts favor five other stocks that could be more promising.

iQIYI, Stock, Analysts