Momo Stock Pacing for Best Day in Months After Earnings

Short sellers were circling MOMO shares ahead of earnings

Digital Content Manager
Mar 12, 2019 at 9:59 AM
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The shares of Chinese social media name Momo Inc (NASDAQ:MOMO) are up 12.8% at $36.72, after the company announced fourth-quarter earnings and revenue that came in ahead of analysts' expectations. Today, MOMO stock is pacing for its best day since May 2018. 

The stock is up 60% from its Jan. 2 one-year low of $22.85, supported by its 30-day moving average. What's more, MOMO stock is set to close atop its 180-day moving average -- a trendline that capped the equity's rebound attempts earlier this month. The last time the shares ended above this technical level was early October. 

Analysts are generally optimistic on the stock, with six calling it a "buy" or better, compared to just one tepid "hold" rating. The attainable consensus 12-month price target of $38.88, however, represents a slim premium to current levels, leaving the door open for potential price-target hikes.  

Short sellers were swarming MOMO ahead of earnings, with short interest up 41.4% in the last two reporting periods. The 5.94 million shares sold short, however, represent just 3.9% of the stock's available float, and less than three days' worth of pent-up buying power, at the stock's average pace of trading. 

 

 

 

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