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

iQIYI, Inc. (NASDAQ:IQ)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $2.26, but opened at $2.19. iQIYI shares last traded at $2.11, with a volume of 18,692,724 shares.

Wall Street Analysts Forecast Growth

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

iQIYI Price Performance

The company has a quick ratio of 0.45, a current ratio of 0.44 and a debt-to-equity ratio of 0.70. The firm’s fifty day moving average price is $2.13 and its 200-day moving average price is $2.33. The stock has a market cap of $2.00 billion, a P/E ratio of 20.85, a PEG ratio of 4.13 and a beta of 0.03.

iQIYI (NASDAQ:IQ) last announced its quarterly earnings results on Tuesday, February 18th. The company reported ($0.03) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.01. iQIYI had a net margin of 2.62% and a return on equity of 7.62%. The business had revenue of $919.56 million during the quarter, compared to analysts’ expectations of $6.62 billion. Analysts forecast that iQIYI, Inc. will post 0.04 earnings per share for the current year.

Institutional Investors Weigh In On iQIYI

Several institutional investors and hedge funds have recently bought and sold shares of the business. Flow Traders U.S. LLC bought a new position in shares of iQIYI during the third quarter valued at approximately $32,000. Ground Swell Capital LLC purchased a new position in iQIYI during the 3rd quarter valued at $32,000. SBI Securities Co. Ltd. purchased a new stake in shares of iQIYI in the 4th quarter worth about $32,000. Vident Advisory LLC purchased a new stake in shares of iQIYI in the 4th quarter worth about $33,000. Finally, PDS Planning Inc bought a new stake in shares of iQIYI during the 4th quarter valued at about $35,000. Hedge funds and other institutional investors own 52.69% of the company’s stock.

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.