iQIYI (NASDAQ:IQ) Shares Up 6.7% After Better-Than-Expected Earnings

Shares of iQIYI, Inc. (NASDAQ:IQ) shot up 6.7% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $2.48 and last traded at $2.47. 17,844,777 shares traded hands during trading, a decline of 31% from the average session volume of 25,694,180 shares. The stock had previously closed at $2.31.

The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.01. iQIYI had a return on equity of 13.26% and a net margin of 4.69%. The business had revenue of $919.56 million for the quarter, compared to the consensus estimate of $6.62 billion.

Analysts Set New Price Targets

A number of research firms recently issued reports on IQ. Benchmark restated a “hold” rating on shares of iQIYI in a research note on Wednesday. OTR Global reissued a “negative” rating on shares of iQIYI in a report on Wednesday, January 8th. Citigroup reduced their price objective on iQIYI from $3.00 to $2.80 and set a “buy” rating for the company in a report on Thursday, January 16th. JPMorgan Chase & Co. cut their price target on iQIYI from $2.50 to $1.80 and set a “neutral” rating for the company in a report on Friday, November 22nd. Finally, HSBC raised iQIYI from a “reduce” rating to a “hold” rating and set a $2.15 price objective for the company in a research report on Thursday, January 16th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and one has given a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $2.91.

Hedge Funds Weigh In On iQIYI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Flow Traders U.S. LLC bought a new position in iQIYI during the 3rd quarter valued at $32,000. Ground Swell Capital LLC purchased a new stake in shares of iQIYI in the third quarter valued at $32,000. SBI Securities Co. Ltd. purchased a new stake in shares of iQIYI in the fourth quarter valued at $32,000. Vident Advisory LLC acquired a new position in shares of iQIYI in the fourth quarter worth $33,000. Finally, PDS Planning Inc acquired a new position in shares of iQIYI in the fourth quarter worth $35,000. 52.69% of the stock is owned by institutional investors.

iQIYI Price Performance

The stock’s 50 day moving average price is $2.13 and its two-hundred day moving average price is $2.35. The company has a quick ratio of 0.45, a current ratio of 0.45 and a debt-to-equity ratio of 0.65. The firm has a market capitalization of $2.32 billion, a price-to-earnings ratio of 12.08, a P/E/G ratio of 4.10 and a beta of 0.03.

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.