Investment analysts at Wall Street Zen have upgraded shares of Waterdrop Inc. (NYSE: WDH) from a “hold” rating to a “buy” rating, according to a research note issued on Saturday. This change reflects a growing confidence in the company’s potential amid recent fluctuations in its stock performance.
In recent weeks, Waterdrop has been the subject of mixed assessments from various financial institutions. On September 29, the Goldman Sachs Group downgraded the stock from “buy” to “neutral,” setting a price target of $2.00. Similarly, Weiss Ratings reaffirmed a “hold (C+)” rating on October 8. Currently, according to MarketBeat.com, the stock has a consensus rating of “hold” along with an average price target of $2.00.
Current Stock Performance and Financials
As of Friday, Waterdrop’s stock opened at $1.80, reflecting a decline of 1.4%. Over the past year, the stock has reached a low of $1.08 and a high of $2.18. With a market capitalization of $650.65 million, the company has a price-to-earnings ratio of 9.45 and a beta of -0.25. The stock’s 50-day moving average stands at $1.77, while the 200-day moving average is at $1.68.
Waterdrop’s most recent quarterly earnings report, released on December 3, revealed earnings per share (EPS) of $0.06, which fell short of the consensus estimate of $0.27 by $0.21. The company reported a net margin of 15.58% and a return on equity of 9.99%, with total revenue for the quarter at $135.98 million, significantly below the consensus estimate of $859.05 million.
Institutional Investments and Ownership
Recent changes in institutional investor positions indicate a growing interest in Waterdrop. Notably, E Fund Management Hong Kong Co. Ltd. took a new position in the second quarter, valued at approximately $372,000. Invesco Ltd. also acquired a new stake valued at around $156,000.
Additionally, Marshall Wace LLP made a new investment worth about $25,000 during the same period. Furthermore, GSA Capital Partners LLP increased its stake by 91.0% in the third quarter, now holding 46,065 shares valued at $87,000 after purchasing an additional 21,953 shares.
Currently, institutional investors own 1.96% of Waterdrop’s stock, indicating a cautious but positive outlook from larger investment entities.
About Waterdrop Inc.
Waterdrop Inc., through its subsidiaries, provides online insurance brokerage services that connect users with various insurance products underwritten by insurance companies in the People’s Republic of China. The company specializes in offering short-term health, long-term health, and life insurance products and services.
As the company navigates the complexities of the insurance market, its recent upgrades and institutional investments highlight a pivotal moment that could shape its future trajectory.
