Sina stock fell 21.1% in December 2016
China-based (FXI) online media company Sina (SINA) fell 21.1% in December 2016. However, the company’s stock rose 31% in 2016. Last week, the firm announced its quarterly results and reported revenue of $272.3 million compared to analyst estimates of $265.3 million. Earnings per share (or EPS) were also significantly higher than analyst estimates of $0.35 at $0.56.
Sina reported a net margin of 9.0%. Revenue rose 21.5% YoY (year-over -year), whereas the earnings per share also rose significantly from $0.39 in the prior-year period.
How do analysts view Sina?
Sina was recently upgraded by HSBC. Analysts at HSBC had stated in early December that Sina is currently undervalued and that they foresee a potential upside of 56% for the company’s stock price, primarily driven by the performance of subsidiary Weibo (WB). Weibo is China’s version of Twitter (TWTR), and its stock price rose over 110% in 2016.
Of the 18 analysts covering Sina, 15 have issued “buy” recommendations and three have issued “hold” recommendations on the stock. The analyst stock price target for Sina is $87.84 with a median target estimate of $86. This means that Sina is trading at a discount of 41% to its median analyst price target.