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

iQIYI, Inc. (NASDAQ:IQ - Get Free Report) shares gapped down prior to trading on Monday . The stock had previously closed at $2.42, but opened at $2.36. iQIYI shares last traded at $2.38, with a volume of 991,637 shares traded.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on IQ shares. HSBC downgraded iQIYI from a "hold" rating to a "reduce" rating and lowered their price target for the stock from $4.70 to $3.00 in a report on Tuesday, July 23rd. Benchmark cut shares of iQIYI from a "buy" rating to a "hold" rating in a research report on Friday, August 23rd. Hsbc Global Res downgraded iQIYI from a "hold" rating to a "moderate sell" rating in a report on Tuesday, July 23rd. The Goldman Sachs Group cut iQIYI from a "buy" rating to a "neutral" rating and set a $2.80 target price on the stock. in a research note on Tuesday, August 27th. Finally, Nomura Securities raised shares of iQIYI to a "hold" rating in a research note on Monday, August 26th. One equities research analyst has rated the stock with a sell rating and four have given a hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $3.45.

iQIYI Stock Performance

The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.53 and a current ratio of 0.53. The firm has a market capitalization of $2.31 billion, a price-to-earnings ratio of 8.61, a PEG ratio of 0.70 and a beta of 0.07. The company has a fifty day moving average of $2.49 and a two-hundred day moving average of $3.58.

iQIYI (NASDAQ:IQ - Get Free Report) last announced 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 the consensus estimate of $1.02 billion. iQIYI had a return on equity of 14.57% and a net margin of 5.37%. During the same period in the prior year, the business posted $0.05 earnings per share. As a group, equities research analysts predict that iQIYI, Inc. will post 0.16 earnings per share for the current fiscal year.

Institutional Trading of iQIYI

Several institutional investors and hedge funds have recently modified their holdings of the business. Skandinaviska Enskilda Banken AB publ acquired a new stake in shares of iQIYI during the second quarter valued at about $31,000. Seven Eight Capital LP bought a new stake in shares of iQIYI in the second quarter worth $42,000. Vanguard Personalized Indexing Management LLC acquired a new stake in iQIYI in the second quarter valued at $46,000. Ballentine Partners LLC raised its position in iQIYI by 65.0% during the 1st quarter. Ballentine Partners LLC now owns 18,317 shares of the company's stock worth $77,000 after purchasing an additional 7,219 shares during the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd lifted its holdings in iQIYI by 59.9% during the 2nd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 21,954 shares of the company's stock worth $81,000 after buying an additional 8,225 shares during the period. 52.69% of the stock is currently owned by institutional investors.

iQIYI Company Profile

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.