58.com Sees Unusually Large Options Volume (NYSE:WUBA)

58.com Inc (NYSE:WUBA) was the recipient of some unusual options trading on Tuesday. Investors purchased 5,139 call options on the stock. This is an increase of 4,794% compared to the average daily volume of 105 call options.

Hedge funds and other institutional investors have recently modified their holdings of the business. Daiwa Securities Group Inc. bought a new position in 58.com in the 2nd quarter worth about $58,000. Tower Research Capital LLC TRC bought a new stake in shares of 58.com during the 2nd quarter valued at about $90,000. Quadrant Capital Group LLC boosted its position in shares of 58.com by 61.1% during the 1st quarter. Quadrant Capital Group LLC now owns 1,923 shares of the information services provider’s stock valued at $124,000 after acquiring an additional 729 shares during the last quarter. Ellington Management Group LLC bought a new stake in shares of 58.com during the 2nd quarter valued at about $230,000. Finally, Banque Pictet & Cie SA bought a new stake in shares of 58.com during the 2nd quarter valued at about $260,000. Institutional investors and hedge funds own 57.79% of the company’s stock.

Shares of 58.com stock traded down $2.03 during trading hours on Wednesday, hitting $51.47. 5,271 shares of the company’s stock traded hands, compared to its average volume of 859,207. 58.com has a 12-month low of $49.93 and a 12-month high of $77.60. The stock has a market capitalization of $7.67 billion, a PE ratio of 26.45, a price-to-earnings-growth ratio of 0.93 and a beta of 1.62. The stock’s fifty day moving average is $58.03. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.29 and a quick ratio of 1.29.

58.com (NYSE:WUBA) last announced its earnings results on Tuesday, May 28th. The information services provider reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.12. 58.com had a return on equity of 11.48% and a net margin of 18.44%. The firm had revenue of $438.30 million during the quarter, compared to analyst estimates of $434.43 million. During the same period last year, the firm posted $0.33 EPS. The business’s revenue was up 11.5% compared to the same quarter last year. Sell-side analysts anticipate that 58.com will post 2.54 earnings per share for the current fiscal year.

Several brokerages have recently issued reports on WUBA. Jefferies Financial Group began coverage on 58.com in a research report on Monday, August 5th. They set a “buy” rating and a $66.40 target price for the company. Credit Suisse Group lowered 58.com from an “outperform” rating to a “neutral” rating and set a $57.23 target price for the company. in a research report on Tuesday, July 16th. Zacks Investment Research lowered 58.com from a “strong-buy” rating to a “hold” rating in a research report on Saturday, August 3rd. Finally, ValuEngine lowered 58.com from a “buy” rating to a “hold” rating in a research report on Monday. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and three have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $62.93.

About 58.com

58.com Inc operates various multi-category online classifieds platforms and vertical listing platforms that enable local businesses and consumers to connect, share information, and conduct business in the People's Republic of China. It operates multi-content category online classified platforms primarily under the 58 and Ganji names; Anjuke, an online real estate listing platform; ChinaHR, an online recruitment platform that focuses on white collar jobs; and Jia Xiao Yi Dian Tong, an online platform for driver's license examination preparation and other related services.

Further Reading: Put Option Volume

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