Sohu.com (SOHU) Rating Lowered to Hold at Zacks Investment Research

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Sohu.com (NASDAQ:SOHU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.

According to Zacks, “Sohu’s fourth quarter 2018 results benefits from improved operation efficiency. The company’s investment in online videos is a key catalyst. Robust growth in search and search-related business drove top-line in the reported quarter. Expanding daily active users on Sohu news app is a tailwind. Increasing popularity of online video and growing e-commerce continues to fuel online ad spending. Further, strong traffic growth in search and mobile businesses is a key positive. However, shares have underperformed the industry in the past year. The company’s declining brand advertising business is a headwind. Declining macroeconomic condition in China impacted top-line in the reported quarter accompanied by budget cuts from large enterprises. Moreover, stricter government regulations will continue to remain an overhang on Sohu.”

Other equities analysts have also issued research reports about the stock. BidaskClub upgraded shares of Sohu.com from a “strong sell” rating to a “sell” rating in a report on Monday, October 15th. ValuEngine lowered shares of Sohu.com from a “hold” rating to a “sell” rating in a report on Wednesday, January 2nd.

Shares of NASDAQ:SOHU opened at $21.04 on Tuesday. The firm has a market cap of $850.34 million, a PE ratio of -5.09 and a beta of 1.29. The company has a current ratio of 1.96, a quick ratio of 2.02 and a debt-to-equity ratio of 0.19. Sohu.com has a 52 week low of $15.89 and a 52 week high of $42.12.

Sohu.com (NASDAQ:SOHU) last issued its quarterly earnings results on Friday, February 1st. The information services provider reported $0.37 EPS for the quarter, topping analysts’ consensus estimates of ($1.03) by $1.40. The company had revenue of $482.20 million for the quarter, compared to analyst estimates of $477.78 million. Sohu.com had a negative net margin of 8.50% and a negative return on equity of 10.05%. Sohu.com’s revenue was down 5.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($2.01) earnings per share. Equities analysts anticipate that Sohu.com will post -2.08 earnings per share for the current year.

Several large investors have recently modified their holdings of the company. Vanguard Group Inc lifted its holdings in Sohu.com by 4.4% in the third quarter. Vanguard Group Inc now owns 1,037,386 shares of the information services provider’s stock valued at $20,623,000 after buying an additional 43,260 shares during the period. Vanguard Group Inc. lifted its holdings in Sohu.com by 4.4% in the third quarter. Vanguard Group Inc. now owns 1,037,386 shares of the information services provider’s stock valued at $20,623,000 after buying an additional 43,260 shares during the period. Baillie Gifford & Co. lifted its holdings in Sohu.com by 0.7% in the third quarter. Baillie Gifford & Co. now owns 706,870 shares of the information services provider’s stock valued at $14,053,000 after buying an additional 5,159 shares during the period. Krane Funds Advisors LLC lifted its holdings in Sohu.com by 27.4% in the third quarter. Krane Funds Advisors LLC now owns 510,277 shares of the information services provider’s stock valued at $10,144,000 after buying an additional 109,734 shares during the period. Finally, RMB Capital Management LLC lifted its holdings in Sohu.com by 115.9% in the fourth quarter. RMB Capital Management LLC now owns 501,772 shares of the information services provider’s stock valued at $8,741,000 after buying an additional 269,407 shares during the period. Institutional investors own 59.49% of the company’s stock.

About Sohu.com

Sohu.com Inc provides online media, search, and game services on personal computers (PCs), mobile devices, and tablets in the People's Republic of China. The company operates sohu.com, which provides online news and information; Sohu News APP, a mobile phone application, as well as m.sohu.com mobile portal; tv.sohu.com that offers online video content and service, as well as Sohu Video APP, a mobile phone application; and focus.cn, which provides online real estate information and services.

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