HUYA (NYSE:HUYA) Shares Down 9.4% on Disappointing Earnings

HUYA Inc. (NYSE:HUYA)’s stock price dropped 9.4% during mid-day trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $3.40 and last traded at $3.36. Approximately 2,006,356 shares traded hands during trading, an increase of 31% from the average daily volume of 1,526,927 shares. The stock had previously closed at $3.71.

The company reported $0.01 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.03). The business had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.53 billion. HUYA had a negative net margin of 2.51% and a positive return on equity of 0.30%. The business’s revenue for the quarter was down 2.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.48 earnings per share.

HUYA Announces Dividend

The company also recently declared an annual dividend, which will be paid on Monday, June 30th. Investors of record on Tuesday, June 17th will be given a $1.47 dividend. The ex-dividend date of this dividend is Tuesday, June 17th. This represents a dividend yield of 42.55%. HUYA’s dividend payout ratio is -4,900.00%.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Daiwa Capital Markets downgraded shares of HUYA from an “outperform” rating to a “neutral” rating in a report on Tuesday. Daiwa America cut shares of HUYA from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Six research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, HUYA presently has an average rating of “Hold” and a consensus target price of $5.68.

Hedge Funds Weigh In On HUYA

Hedge funds and other institutional investors have recently made changes to their positions in the company. WCM Investment Management LLC boosted its position in HUYA by 4,396.5% during the fourth quarter. WCM Investment Management LLC now owns 2,854,171 shares of the company’s stock worth $8,505,000 after purchasing an additional 2,790,696 shares during the period. FMR LLC lifted its position in HUYA by 236.8% during the third quarter. FMR LLC now owns 2,391,957 shares of the company’s stock worth $12,199,000 after acquiring an additional 1,681,800 shares during the last quarter. Monolith Management Ltd acquired a new position in shares of HUYA in the fourth quarter valued at approximately $2,144,000. Connor Clark & Lunn Investment Management Ltd. increased its stake in shares of HUYA by 66.5% during the fourth quarter. Connor Clark & Lunn Investment Management Ltd. now owns 758,281 shares of the company’s stock worth $2,328,000 after purchasing an additional 302,988 shares during the period. Finally, Caxton Associates LP boosted its stake in HUYA by 79.6% in the 4th quarter. Caxton Associates LP now owns 508,296 shares of the company’s stock valued at $1,560,000 after purchasing an additional 225,341 shares during the period. 23.20% of the stock is owned by institutional investors.

HUYA Trading Down 7.4 %

The company has a 50 day moving average of $3.71 and a 200-day moving average of $3.68. The firm has a market capitalization of $725.52 million, a P/E ratio of -35.61 and a beta of 0.72.

About HUYA

HUYA Inc, together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres.