The Swiss National Bank, one of the world’s most prominent central banks, has recently caught the attention of investors with their significant reduction in holdings in JOYY Inc. During the fourth quarter of 2022, the bank disclosed that they had reduced their stake in JOYY by 13%. It is worth noting that this move comes at a time of great market volatility and uncertainty, and as such, shows foresight and prudence on the part of Swiss National Bank.
JOYY Inc. is an information services provider that manages a peer-to-peer online communication social platform. The platform allows users to participate in real-time voice, text, and video group activities across various segments such as music and entertainment, online dating, live game broadcasting, advertising, among others. As the company operates globally through its BIGO and All Other segments, it has been facing increasing competition from its peers in recent years.
The NASDAQ YY opened at $28.50 on May 22nd, 2023 – showing some resilience despite the challenging economic environment worldwide. On a positive note for potential investors considering purchasing stocks from JOYY, it is interesting to note that this stock currently offers more value for money compared to its one year high of $42.84.
The company’s fluctuating market capitalization of $2.10 billion could signify that there are still opportunities for significant growth in their business operations; however one should bear in mind past performance may not guarantee future results and any investment decision must be thoroughly considered by individuals or institutions alike.
Furthermore, with a price-to-earnings ratio of 39.58 and a beta of 0.51 (a measure used to determine volatility), JOYY’s stock offers reasonable stability compared to other communication technology providers- however careful consideration should be given when making any investment decision due to fluctuations within today’s economy.
Overall it remains unclear precisely why Swiss National Bank decided to sell off some of its holdings in JOYY during the fourth quarter of 2022. Yet one potential reason could be their desire to diversify investments and reduce their exposure to risks in a highly-volatile market. As always, investors should stay informed with regular news updates, enhancing their understanding of market dynamics, and carefully weigh up their investment options.
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YY Inc.: Institutional Investors Bullish on Communication Social Platform Powerhouse
YY Inc.: A Communication Social Platform Powerhouse
YY Inc. is a leader in managing an online social platform that connects users globally through voice, text, and video group activities. The company’s services span across entertainment, games, online dating, live broadcasting of games, education and advertising. The firm operates through two segments: BIGO and All Other. YY’s innovative solutions have garnered attention from institutional investors, with several acquiring or selling shares worth millions of dollars.
Quantbot Technologies LP bought numerous shares in JOYY back in 2020’s third quarter for around $34,000. Signaturefd LLC saw lucrative potential and increased its stake by 91.2% during the same quarter; it now boasts 3,673 shares valued at $95,000 after acquiring a further 1,752 shares during this period. Quadrant Capital Group LLC also entered the fray by raising its stake by over 500%, owning JOYY worth $100,000 after purchasing an additional 3,197 shares.
Moving into 2021’s first quarter, Daiwa Securities Group Inc lifted its position in JOYY by 23.5%, ending up with around $133k by buying an extra 800 shares during this time frame.
Finally, Counterpoint Mutual Funds LLC entered the scene as well; they recently acquired one million dollars’ worth of JOYY stock – indicating that institutional investors are bullish on the stock and optimism about future potential.
The firm has also been subjected to several brokerages’ commentary on Wall Street since last year; Citigroup lowered their price objective on JOYY from $46 to $45 and offered a “buy” rating back in February ’21. Benchmark lowered their price target on JOYY from from $62 to $49 just one month later in March.
JPMorgan Chase & Co., gave what they described as a “neutral” rating for YY following a drop in projections from $35 to $30 in early 2021. Finally, CLSA reduced its price target from $48 to $42 but retained a “buy” rating for JOYY last March.
The consensus figures show that three research analysts have so far rated the stock as “hold,” with two rating it as a “buy.” Based on data obtained from Bloomberg, JOYY currently has an average rating of “Hold” and a consensus target price of $41.50.
Last March, in its most recent earnings report, YY posted $0.49 EPS for Q4 2020, exceeding analyst estimates by [$0.57]. The company revealed net margin figures of 5.34% and return on equity (ROE) of just over 3%, drawing mixed responses from different analysts.
Based on projected trends gathered by respected sell-side analysts reporting publicly via FOXBusiness (a recent report published May 22), they suggest that YY will post approximately 85 cents’ earnings per share in the ongoing year, thus promising investors reasonable payouts long term.
Of note: Like several companies listed on NASDAQ and other global exchanges, YY opted recently to offer designated dividends to shareholders quarterly; this recently occurred during April-end when they paid out their first dividend of $2.03 via Friday, April 28th’s ex-dividend time and date.
In summary, given that institutional investors are bullish on YY stock coupled with positive analyst projections long term- indications suggest that YY – while difficult to predict accurately – may present worthwhile investment opportunities for shrewd investors willing to take healthy risks in uncertain markets where such investments could yield high rewards over timeframes spanning years if not shorter durations depending factors beyond anyone’s control when investing capital today into publicly-traded equities.
