Sohu.com (NASDAQ:SOHU) Rating Increased to Hold at Zacks Investment Research

Sohu.com (NASDAQ:SOHU) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Wednesday, Zacks.com reports. The brokerage presently has a $15.00 price target on the information services provider’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 6.69% from the company’s current price.

According to Zacks, “Sohu’s investment in online videos is expected to bode well for the company in the near term. Strong traffic growth in search and mobile businesses is a key positive. Additionally, Sohu improved content on its Media Portal platform by strengthening partnerships with quality content providers. This is expected to improve user engagement levels. Moreover, increasing popularity of the company’s online videos and growing e-commerce is expected to drive online ad spending, which is a tailwind. However, sluggish macroeconomic conditions and seasonality in China are expected to take a toll on profits. Moreover, stricter government regulations will continue to remain an overhang on Sohu. The company’s declining brand advertising business is also a headwind. Notably, shares have underperformed the industry on a year-to-date basis.”

SOHU has been the topic of a number of other research reports. BidaskClub downgraded Sohu.com from a “strong-buy” rating to a “buy” rating in a research report on Friday, February 15th. ValuEngine raised Sohu.com from a “sell” rating to a “hold” rating in a research report on Tuesday, April 30th.

Shares of NASDAQ SOHU traded down $0.20 during trading hours on Wednesday, reaching $14.06. 8,025 shares of the stock were exchanged, compared to its average volume of 369,156. The firm has a market cap of $544.45 million, a P/E ratio of -3.40 and a beta of 1.52. The company has a current ratio of 1.91, a quick ratio of 1.91 and a debt-to-equity ratio of 0.15. Sohu.com has a 52 week low of $13.11 and a 52 week high of $42.12.

Sohu.com (NASDAQ:SOHU) last issued its quarterly earnings results on Monday, April 29th. The information services provider reported ($1.44) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($1.51) by $0.07. The business had revenue of $431.38 million for the quarter, compared to the consensus estimate of $404.96 million. Sohu.com had a negative return on equity of 8.07% and a negative net margin of 6.65%. The firm’s quarterly revenue was down 5.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($2.39) earnings per share. Analysts forecast that Sohu.com will post -5.17 EPS for the current year.

Several hedge funds have recently modified their holdings of SOHU. Hillhouse Capital Advisors Ltd. acquired a new stake in shares of Sohu.com in the 4th quarter valued at $13,971,000. Norges Bank acquired a new stake in shares of Sohu.com in the 4th quarter valued at $9,830,000. Krane Funds Advisors LLC acquired a new stake in shares of Sohu.com in the 1st quarter valued at $6,192,000. RMB Capital Management LLC boosted its holdings in shares of Sohu.com by 115.9% in the 4th quarter. RMB Capital Management LLC now owns 501,772 shares of the information services provider’s stock valued at $8,741,000 after purchasing an additional 269,407 shares in the last quarter. Finally, Renaissance Technologies LLC boosted its holdings in shares of Sohu.com by 7.6% in the 1st quarter. Renaissance Technologies LLC now owns 1,890,049 shares of the information services provider’s stock valued at $31,337,000 after purchasing an additional 133,549 shares in the last quarter. 55.13% of the stock is currently owned by hedge funds and other institutional investors.

About Sohu.com

Sohu.com Limited provides online media, search, and game services on personal computers (PCs) and mobile devices in the People's Republic of China. The company provides online news and information through a mobile phone application, Sohu News APP; sohu.com for PCs; and m.sohu.com mobile portal, as well as online video content and service through tv.sohu.com for PCs, as well as Sohu Video APP mobile phone application.

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