iQIYI (NASDAQ:IQ) Stock Price Up 6.7% on Strong Earnings

Shares of iQIYI, Inc. (NASDAQ:IQ) rose 6.7% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $2.48 and last traded at $2.47. Approximately 17,844,777 shares traded hands during trading, a decline of 31% from the average daily volume of 25,694,180 shares. The stock had previously closed at $2.31.

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

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. OTR Global reaffirmed a “negative” rating on shares of iQIYI in a report on Wednesday, January 8th. HSBC raised shares of iQIYI from a “reduce” rating to a “hold” rating and set a $2.15 price target on the stock in a report on Thursday, January 16th. Hsbc Global Res upgraded iQIYI from a “moderate sell” rating to a “hold” rating in a research note on Thursday, January 16th. Citigroup lowered their target price on iQIYI from $3.00 to $2.80 and set a “buy” rating on the stock in a research note on Thursday, January 16th. Finally, JPMorgan Chase & Co. dropped their price target on shares of iQIYI from $2.50 to $1.80 and set a “neutral” rating on the stock in a research report on Friday, November 22nd. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and one has given a buy rating to the stock. According to MarketBeat, iQIYI currently has a consensus rating of “Hold” and an average target price of $2.91.

Hedge Funds Weigh In On iQIYI

A number of large investors have recently added to or reduced their stakes in IQ. Robeco Institutional Asset Management B.V. raised its position in shares of iQIYI by 4.8% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 24,357,654 shares of the company’s stock worth $48,959,000 after purchasing an additional 1,114,390 shares during the last quarter. Garden State Investment Advisory Services LLC acquired a new position in shares of iQIYI during the third quarter valued at approximately $835,000. BNP Paribas Financial Markets lifted its position in shares of iQIYI by 77.1% in the third quarter. BNP Paribas Financial Markets now owns 1,871,931 shares of the company’s stock valued at $5,354,000 after acquiring an additional 815,226 shares in the last quarter. Franklin Resources Inc. boosted its stake in shares of iQIYI by 16.0% in the third quarter. Franklin Resources Inc. now owns 173,386 shares of the company’s stock worth $496,000 after acquiring an additional 23,926 shares during the last quarter. Finally, Monolith Management Ltd acquired a new stake in shares of iQIYI in the third quarter worth approximately $4,576,000. 52.69% of the stock is currently owned by institutional investors and hedge funds.

iQIYI Price Performance

The company has a 50-day moving average of $2.13 and a 200 day moving average of $2.36. 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 stock has a market capitalization of $2.38 billion, a PE ratio of 12.43, a PEG 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.