As of its most recent SEC filing, UBS Group AG has significantly increased its holdings in the information services provider JOYY Inc. (NASDAQ:YY) by an impressive 290.7%. The boost saw the firm acquire an extra 263,662 shares of JOYY’s stock during Q4 of 2022, bringing its total holding to 354,369 shares worth $11,195,000.
JOYY is a leading communication social platform that facilitates real-time online group activities through voice, text and video. Its range of services includes music and entertainment, online gaming, dating platforms, live game broadcasting, online education and advertising. The company operates through its BIGO and All Other segments.
Despite a positive trajectory for UBS Group AG’s holdings in YY stock, the latter began trading at $28.22 on May 23rd—its lowest fifty-day moving average price standing at $29.49 with a two-hundred day moving average price of $31.75. JOYY Inc.’s debt-to-equity ratio stands at an admirable 0.07 alongside a quick ratio and current ratio each standing at 1:51.
JOYY’s market capitalization hits $2.08 billion with a PE ratio amounting to 39:19 alongside a beta percentage of 0.51 which places it within a favorable position in the relevant industry relative to rival companies’ stocks.
UBS Group AG’s investment strategy seemingly favors JOYY as it continues to incorporate this prospering communication social platform into its portfolio despite challenges faced by similar businesses during China’s recent regulatory clampdowns. The Swiss financial services giant is evidently committed to ensuring that just like other acquisitions under UBS radar initiatives reported earlier this year; gains realized from investments remain consistent with sound fundamentals across all relevant sectors they apply themselves towards investing in.
In summary, we’ll be watching closely as investors monitor pertinent global economic trends including past industrial and tech liaisons as well as the mitigation strategies that corporates have put in place to counter any market disruptions.
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Hedge Funds and Institutional Investors Flock to JOYY Inc: An Inside Look
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”YY” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]JOYY Inc: The Lowdown on Hedge Funds and Institutional Investors
In the first quarter of 2023, there has been a lot of activity in the world of institutional investing, particularly regarding shares in JOYY Inc (NASDAQ: YY), the communication social platform primarily used for group activities.
Having recently reported its quarterly earnings, JOYY earned $0.49 per share, far exceeding the expected $0.08 target projected by analysts. Group revenue was $604.91 million for Q1, just above the anticipated $594.84 million.
Following this news, hedge funds and institutional investors have bought into and reduced their stakes from JOYY. Capital World Investors raised their share in JOYY by 28.8% whilst owning an additional 906,900 shares during the last quarter totalling a value of over $148 million. Meanwhile, Vanguard Group increased its stake by 4.2%, reaching over $74 million with an additional 81,581 shares acquired during the period.
But Point72 Hong Kong had the most significant change in holdings – raising its stake in shares from their position one year before at a faster rate than any other fund: an increase of 43.9%. In addition to this growth was Canada Pension Plan Investments Board which went up by 8.2%, to own more than one million shares valued at over £28 million following an investment switch just under two years ago and MY.Alpha Management HK Advisors Ltd raised holdings by 49.1%.
Interestingly enough Bloomberg’s data reveals that Institutional Investors own approximately 42% if not more of YY’s average rating being “Hold”, while three research analysts have given it that rating with two rating it as a Buy with a consensus analyst price target estimate set at about US$41-50 according to Yahoo Finance.
Further research suggests that YY operates across various sectors including music/entertainment businesses (i.e., karaoke services), dating apps, live game broadcasting, online education services and related advertising. It is structured into two segments; BIGO and All Other. This Bloomberg report noted that YY had a net margin of 5.34% with a return on equity of 3.06%. Envisaging further growth from JOYY Inc., analysts predict it will post 0.85 earnings per share for the current year.
While its second dividend was recently announced, shareholders were given a payment of $0.507 per share last April with an annualised $2.03 rate amount translating to 7.19% yield which may prove intriguing for investors seeking to diversify their portfolios especially in relatively not-too-heavily traded companies such as JOYY.
Overall, despite some differing opinions amongst analysts with regards YY’s general outlook, growing interest among hedge fund managers and institutional investors demonstrates potential for future gains along with robust earnings reports so far in Q1 2023 leaving us excited to see where this admirable business will head next!
