Zacks Investment Research Lowers Sohu.com (NASDAQ:SOHU) to Hold

Zacks Investment Research downgraded shares of Sohu.com (NASDAQ:SOHU) from a buy rating to a hold rating in a research note released on Monday, Zacks.com reports. They currently have $25.00 price target on the information services provider’s stock.

According to Zacks, “Sohu’s investment in online videos and improved content availability on media portal platform based on partnerships with quality content providers is major positive. This is expected to boost user engagement levels. Moreover, Sohu’s strengthening of online game businesses and popularity of TLBB franchise are key catalysts. Also, the company undertook cost-saving initiatives in Sohu Media and Video segments, which are expected to aid profitability. Sogou maintained its position as the “second-largest search engine” based in China while Sogou Mobile Keyboard continued to be the “third largest Chinese mobile app” on an expanded user base. Notably, shares have outperformed the industry year to date. However, a decline in ad spending due to coronavirus-induced economic softness in China is a concern.”

SOHU has been the subject of a number of other reports. BidaskClub upgraded Sohu.com from a hold rating to a buy rating in a report on Thursday, July 30th. Citigroup upgraded Sohu.com from a neutral rating to a buy rating and set a $10.00 price objective for the company in a report on Thursday, April 16th. Morgan Stanley upgraded Sohu.com from an underweight rating to an equal weight rating in a report on Friday, July 31st. TheStreet upgraded Sohu.com from a d rating to a c- rating in a report on Wednesday, July 29th. Finally, ValuEngine downgraded Sohu.com from a buy rating to a hold rating in a report on Tuesday, July 28th. Four equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. Sohu.com presently has a consensus rating of Hold and a consensus price target of $22.77.

SOHU traded down $0.36 during trading on Monday, hitting $19.78. The company’s stock had a trading volume of 22,292 shares, compared to its average volume of 682,205. The firm’s 50 day moving average price is $14.11 and its 200-day moving average price is $9.80. The stock has a market cap of $806.96 million, a PE ratio of -7.10 and a beta of 2.49. Sohu.com has a twelve month low of $5.41 and a twelve month high of $25.71.

Sohu.com (NASDAQ:SOHU) last issued its quarterly earnings results on Monday, August 10th. The information services provider reported ($1.96) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.12) by ($1.84). Sohu.com had a negative net margin of 6.00% and a negative return on equity of 8.61%. As a group, research analysts expect that Sohu.com will post -1.17 EPS for the current year.

Institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada boosted its position in Sohu.com by 34.4% during the 1st quarter. Royal Bank of Canada now owns 4,722 shares of the information services provider’s stock worth $30,000 after purchasing an additional 1,208 shares during the period. US Bancorp DE boosted its position in Sohu.com by 1,409.1% during the 1st quarter. US Bancorp DE now owns 5,629 shares of the information services provider’s stock worth $35,000 after purchasing an additional 5,256 shares during the period. Tower Research Capital LLC TRC boosted its position in Sohu.com by 314.5% during the 1st quarter. Tower Research Capital LLC TRC now owns 5,894 shares of the information services provider’s stock worth $37,000 after purchasing an additional 4,472 shares during the period. UBS Group AG boosted its position in Sohu.com by 158.2% in the 4th quarter. UBS Group AG now owns 5,338 shares of the information services provider’s stock valued at $60,000 after buying an additional 3,271 shares during the last quarter. Finally, AJO LP purchased a new position in Sohu.com in the 2nd quarter valued at about $64,000. 44.21% of the stock is owned by hedge funds and other institutional investors.

Sohu.com Company Profile

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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