DouYu International Holdings Limited [DOYU] Stock trading around $4.53 per share: What’s Next?

DouYu International Holdings Limited [NASDAQ: DOYU] stock went on an upward path that rose over 1.80% on Tuesday, amounting to a one-week price decrease of less than -13.05%. The company report on July 12, 2021 that DouYu Announces Termination of Merger Agreement with Huya.

DouYu International Holdings Limited (“DouYu” or the “Company”) (Nasdaq: DOYU), a leading game-centric live streaming platform in China and a pioneer in the eSports value chain, announced that on July 10, 2021, the State Administration for Market Regulation of the People’s Republic of China, or the SAMR, posted an announcement of its decision to prohibit the proposed merger (the “Merger”) between HUYA Inc. (“Huya”) and DouYu International Holdings Limited (“DouYu”) following SAMR’s antitrust review (the “SAMR Decision”). DouYu fully respects and will abide by the SAMR Decision, and will comply with all regulatory requirements, conduct its businesses in accordance with the applicable laws and regulations, and fulfill its social responsibilities.

In light of the SAMR Decision, on July 12, 2021, Huya, Tiger Company Ltd., a wholly owned subsidiary of Huya, DouYu, and Nectarine Investment Limited (“Tencent”), a wholly owned subsidiary of Tencent Holdings Limited entered into a termination agreement, pursuant to which the Agreement and Plan of Merger, dated October 12, 2020, by and among the same parties (the “Merger Agreement”), including all schedules and exhibits thereto, and all ancillary agreements contemplated thereby or entered pursuant thereto, were terminated with immediate effect. DouYu and Tencent entered into a termination agreement, dated July 12, 2021, pursuant to which the Reassignment Agreement, dated October 12, 2020, by and between DouYu and Tencent, including all schedules and exhibits thereto, and all ancillary agreements contemplated thereby or entered pursuant thereto, were terminated with immediate effect.

Over the last 12 months, DOYU stock dropped by -64.61%. The average equity rating for DOYU stock is currently 2.60, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $1.54 billion, with 323.50 million shares outstanding and 304.26 million shares in the current float. Compared to the average trading volume of 4.13M shares, DOYU stock reached a trading volume of 6242501 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on DouYu International Holdings Limited [DOYU]:

China Renaissance have made an estimate for DouYu International Holdings Limited shares, keeping their opinion on the stock as Hold, with their previous recommendation back on July 13, 2021. While these analysts kept the previous recommendation, China Renaissance raised their target price from $13 to $16.06. The new note on the price target was released on November 05, 2020, representing the official price target for DouYu International Holdings Limited stock.

The Average True Range (ATR) for DouYu International Holdings Limited is set at 0.42, with the Price to Sales ratio for DOYU stock in the period of the last 12 months amounting to 1.05. The Price to Book ratio for the last quarter was 1.36.

DOYU Stock Performance Analysis:

DouYu International Holdings Limited [DOYU] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -13.05. With this latest performance, DOYU shares dropped by -45.22% in over the last four-week period, additionally sinking by -63.70% over the last 6 months – not to mention a drop of -64.61% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DOYU stock in for the last two-week period is set at 23.32, with the RSI for the last a single of trading hit 20.02, and the three-weeks RSI is set at 26.62 for DouYu International Holdings Limited [DOYU]. The present Moving Average for the last 50 days of trading for this stock 7.07, while it was recorded at 4.67 for the last single week of trading, and 11.45 for the last 200 days.

Insight into DouYu International Holdings Limited Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and DouYu International Holdings Limited [DOYU] shares currently have an operating margin of +1.96 and a Gross Margin at +16.25. DouYu International Holdings Limited’s Net Margin is presently recorded at +5.06.

Return on Total Capital for DOYU is now 2.57, given the latest momentum, and Return on Invested Capital for the company is 6.69. Return on Equity for this stock inclined to 6.70, with Return on Assets sitting at 5.27. When it comes to the capital structure of this company, DouYu International Holdings Limited [DOYU] has a Total Debt to Total Equity ratio set at 0.77. Additionally, DOYU Total Debt to Total Capital is recorded at 0.76, with Total Debt to Total Assets ending up at 0.60. Long-Term Debt to Equity for the company is recorded at 0.24, with the Long-Term Debt to Total Capital now at 0.24.

Reflecting on the efficiency of the workforce at the company, DouYu International Holdings Limited [DOYU] managed to generate an average of $37,474 per employee. Receivables Turnover for the company is 22.95 with a Total Asset Turnover recorded at a value of 1.04.DouYu International Holdings Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.10 and a Current Ratio set at 4.10.

DOYU Stock EPS

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DOYU. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for DouYu International Holdings Limited go to 36.31%.

DouYu International Holdings Limited [DOYU] Insider Position Details

There are presently around $458 million, or 31.40% of DOYU stock, in the hands of institutional investors. The top three institutional holders of DOYU stocks are: CAPITAL RESEARCH GLOBAL INVESTORS with ownership of 11,737,473, which is approximately New of the company’s market cap and around 1.72% of the total institutional ownership; FIL LTD, holding 8,962,490 shares of the stock with an approximate value of $40.6 million in DOYU stocks shares; and UBS GROUP AG, currently with $21.39 million in DOYU stock with ownership of nearly -18.183% of the company’s market capitalization.

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Positions in DouYu International Holdings Limited stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 94 institutional holders increased their position in DouYu International Holdings Limited [NASDAQ:DOYU] by around 37,282,319 shares. Additionally, 58 investors decreased positions by around 18,320,215 shares, while 16 investors held positions by with 45,493,442 shares. The mentioned changes placed institutional holdings at 101,095,976 shares, according to the latest SEC report filing. DOYU stock had 33 new institutional investments in for a total of 23,121,285 shares, while 20 institutional investors sold positions of 4,515,644 shares during the same period.

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