Site icon

Bilibili Has Seen A Strong Share Price Recovery, But Will The Momentum Last Over 2023? These Firms Are Short the Stock. – Darlinez News.

<p> &lbrack;ad&lowbar;1&rsqb;<br &sol;>&NewLine;<&sol;p>&NewLine;<div>&NewLine;<div class&equals;"entry-content column content primary is-two-thirds">&NewLine;<div class&equals;"" style&equals;"padding-bottom&colon; 10px&semi;">&NewLine;<div class&equals;"">&NewLine;<p>&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<span class&equals;"tag is-dark is-uppercase">Investing<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;p>&NewLine;<div class&equals;"byline-container">&NewLine;<div class&equals;"post-date is-italic has-text-grey is-size-7 has-text-weight-medium ">&NewLine;<p>February 20&comma; 2023 9&colon;42 am<&sol;p>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<p>Author&lpar;s&rpar;&colon; Ben Ward<&sol;p>&NewLine;<p>Shares of Chinese based video sharing company Bilibili &lpar;US&colon;BILI&rpar; have staged a 130&percnt; share price recovery following trends in Hong Kong since equity markets after hitting an annual low point below &dollar;8 in late October&period;<&sol;p>&NewLine;<p>The stock continues to trade more than 85&percnt; below its peak hit in early February 2021 during the pandemic which saw a significant uptick in website usage&period;<&sol;p>&NewLine;<p>The company was founded by Xu Yi in 2009 and first listed on the Nasdaq in 2018 and created a second listing on the Hong Kong exchange in March 2021&period;<&sol;p>&NewLine;<p>Bilibili has scaled up quarterly revenues significantly over the last few years to ¥5&period;79 billion yuan reported in Q3 and is on track to post sales of around ¥21&period;91 billion for the full financial year&period;<&sol;p>&NewLine;<p>Over the same time&comma; losses have followed suit with the company on track to report its largest net loss recorded in the history of around -¥7&period;5 billion &lpar;polled by analysts&rpar;&comma; widening from -¥6&period;8 billion in the financial year 2021&period;<&sol;p>&NewLine;<&sol;p>&NewLine;<p>In the current market&comma; as a result of the FED’s rate hiking cycle&comma; loss making companies on high sales&sol;EV multiples continue to be sold off as the cost of financing rises substantially&period; The market has rewarded profitable companies with sustainable recurring positive cash flows&period;<&sol;p>&NewLine;<p><strong>Some <&sol;strong><strong>hedge funds and institutions<&sol;strong><strong> have a negative view on the stock and are currently short the company&period;<&sol;strong><&sol;p>&NewLine;<p>Wolverine Asset Management LLC has the largest net short position with -&dollar;78&period;43 million in put options betting against the stock’s continued recovery&period;<&sol;p>&NewLine;<&sol;p>&NewLine;<p>Weiss Asset Management LP has -&dollar;47&period;35 million of BILI shorted through the use of put options&period;<&sol;p>&NewLine;<p>LMR Partners LLP has the third largest net short position worth -&dollar;33&period;22 million&period; The fund has a &dollar;7&period;05 million long position in the stock and -&dollar;40&period;27 million shorted with put options&period;<&sol;p>&NewLine;<p>Parallax Volatility Advisers L&period;P&period; has the fourth largest net short position of -&dollar;11&period;20 million&period; The fund has a &dollar;2&period;37 million long position&comma; &dollar;40&period;75 million in call option value and -&dollar;54&period;32 million of put options&period;<&sol;p>&NewLine;<p>Jefferies Financial Group Inc has the fifth largest net short position of -&dollar;9&period;48 million in put option exposure&period;<&sol;p>&NewLine;<p>Walleye Trading LLC has a -&dollar;7&period;51 million net short position in the stock consisting of &dollar;3&period;57 million in call option exposure and -&dollar;11&period;08 million in put option exposure&period;<&sol;p>&NewLine;<p>The Calamos Market Neutral Income Fund has a pure short position worth -&dollar;3&period;13 million in the stock&period;<&sol;p>&NewLine;<p>National Bank Of Canada has used -&dollar;4&period;57 million in put options to hedge its position in the stock and protect recent gains made over the last few months&period;<&sol;p>&NewLine;<p>Fintel’s fund sentiment score of 27&period;00 is currently bearish on the company from the perspective of institutional interest in the stock&period; The score ranks BILI in the bottom 20&percnt; out of 36&comma;375 globally screened securities&period;<&sol;p>&NewLine;<p>The company currently has 352 institutions on the register that collectively own 112&period;49 million shares&period; The largest shareholders include&colon; Yiheng Capital Management&comma; Alibaba Group Holding Ltd&comma; Marshall Wace&comma; Fidelity Series Emerging Markets Opportunities Fund&comma; Allspring Global Investments Holdings&comma; and Artisan Partners Limited Partnership&period;<&sol;p>&NewLine;<p>The chart to the right shows the declining fund ownership in the stock since its peak in the pandemic&period;<&sol;p>&NewLine;<p>For an alternative perspective&comma; analysts still think the stock could rise a further 23&period;90&percnt; from current levels this year&period; Fintel’s consensus target price of 27&period;32 consists of 11 strong buy recommendations&comma; 20 buy calls and 10 hold ratings on the stock&period;<&sol;p>&NewLine;<p><i>This article originally appeared on Fintel<&sol;i><&sol;p>&NewLine;<p>&Tab;&Tab;&Tab;&Tab;<&excl;-- &num;post-footer--><&sol;p><&sol;div>&NewLine;

Exit mobile version