Cheetah Mobile (CMCM) Sees Unusually-High Trading Volume on Earnings Beat

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Shares of Cheetah Mobile Inc (NYSE:CMCM) saw an uptick in trading volume on Monday after the company announced better than expected quarterly earnings. 7,436,412 shares changed hands during mid-day trading, an increase of 509% from the previous session’s volume of 1,221,408 shares.The stock last traded at $11.21 and had previously closed at $9.10.

The software maker reported $1.39 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.09 by $1.30. The company had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.07 billion. Cheetah Mobile had a net margin of 27.03% and a return on equity of 33.45%. The firm’s quarterly revenue was down 8.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.64 earnings per share.

Several brokerages recently weighed in on CMCM. TheStreet downgraded shares of Cheetah Mobile from a “b-” rating to a “c” rating in a research report on Friday, June 29th. ValuEngine downgraded shares of Cheetah Mobile from a “buy” rating to a “hold” rating in a research report on Tuesday, May 29th. Finally, Nomura raised shares of Cheetah Mobile from a “neutral” rating to a “buy” rating in a research report on Monday. Two analysts have rated the stock with a sell rating, three have assigned a hold rating, one has given a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $12.25.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Cubist Systematic Strategies LLC bought a new stake in Cheetah Mobile in the 2nd quarter worth approximately $110,000. Sei Investments Co. bought a new stake in Cheetah Mobile in the 1st quarter worth approximately $113,000. TB Alternative Assets Ltd. bought a new stake in Cheetah Mobile in the 2nd quarter worth approximately $149,000. Stevens Capital Management LP bought a new stake in Cheetah Mobile in the 2nd quarter worth approximately $149,000. Finally, Global X Management Co. LLC bought a new stake in Cheetah Mobile in the 1st quarter worth approximately $189,000. 3.39% of the stock is owned by institutional investors.

The stock has a market capitalization of $1.31 billion, a P/E ratio of 6.50 and a beta of 3.30.

About Cheetah Mobile (NYSE:CMCM)

Cheetah Mobile Inc operates as a mobile Internet company worldwide. The company's utility products include Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices; Security Master, an anti-virus and security application for mobile devices; Battery Doctor, a power optimization tool for mobile devices; Cheetah Browser, a Web browser for PCs and mobile devices; CM Browser, a mobile browser to protect users from malicious threats; and CM Launcher, which provides personalized experience in using smart phones.

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