iQIYI (NASDAQ:IQ) Trading Up 7.7% - What's Next?

iQIYI, Inc. (NASDAQ:IQ) saw its stock price rise by 7.7% in mid-day trading on Friday. The shares traded at a high of $2.14 and were last seen at $2.16. Around 6,683,859 shares changed hands during this session, representing a 57% decrease from the average daily trading volume of 15,722,672 shares. This increase follows a previous close at $2.00.

Wall Street Analysts Forecast Growth

Multiple research firms have provided insights on the performance of iQIYI's shares. For instance, Citigroup lowered its price target from $3.00 to $2.80 while maintaining a "buy" rating on the stock in a report issued on January 16. HSBC adjusted its rating for iQIYI from "reduce" to "hold," setting a price target of $2.15 on the same day. Additionally, OTR Global maintained a "negative" rating as of January 8. Other analysts have indicated a mixed outlook, with one sell rating, six hold ratings, and one buy rating among the research community. As per MarketBeat, the overall consensus rating remains a "Hold" with a target price of $2.91.

iQIYI's Recent Trading Performance

iQIYI has experienced a notable increase in its stock price, climbing 14.8% recently. The company currently has a quick ratio of 0.45 and a current ratio of 0.45, showing that it has equivalent short-term assets to cover its short-term liabilities. The debt-to-equity ratio stands at 0.65, indicating a balanced approach to leveraging. With a market capitalization of $2.20 billion, iQIYI displays a P/E ratio of 11.49, as well as a price-to-earnings-growth ratio of 3.15 and a very low beta of 0.02. The 50-day and 200-day simple moving averages are noted at $2.08 and $2.52, respectively.

When it comes to earnings, iQIYI reported a quarterly EPS of $0.06 which surpassed analysts' expectations of $0.04. This marks a slight decline from the $0.07 EPS it reported for the same quarter last year. Market analysts expect iQIYI, Inc. to achieve an EPS of $0.14 for the current fiscal year.

Institutional Inflows and Outflows

Recent activity among institutional investors shows a growing interest in iQIYI. For example, Garden State Investment Advisory Services LLC acquired a new stake valued at approximately $835,000 during the third quarter. Furthermore, BNP Paribas Financial Markets increased its stake by 77.1%, now owning 1,871,931 shares worth about $5.35 million. Dimensional Fund Advisors LP has also increased its holdings by 13.5%, now totaling 5,846,420 shares valued at $21.44 million. Genesis Investment Management LLP made significant moves too, enhancing its position by 112.1% during the third quarter, now controlling 16,582,183 shares worth $47.43 million. Lastly, SG Americas Securities LLC transformed its stake dramatically by 8,351.7% in the same quarter, acquiring another 993,355 shares. Currently, institutional investors own 52.69% of iQIYI stock.

Understanding iQIYI's Business

iQIYI, Inc., along with its subsidiaries, provides online entertainment video services in China. Its offerings include a wide range of products and services like online video, gaming, literature, and animations. The company operates a platform that features diverse internet video content, incorporating both professionally produced content and in-house creations.

Should You Invest in iQIYI?

Before making investment decisions, potential investors should be aware of current market analysis. While analysts have rated iQIYI as a "Hold," noteworthy investment opportunities may lie elsewhere. MarketBeat highlights other stocks currently favored by top-rated analysts which might offer better returns.

iQIYI, stocks, trading