SINA Corp (NASDAQ:SINA), a leading online media company serving China and the global Chinese communities, announced that its board of directors has authorized and approved the Company’s distribution of shares of Weibo Corporation to the Company’s shareholders on a pro rata basis. Weibo is a majority-owned subsidiary of SINA, and its ADSs are currently traded on the NASDAQ Global Select Market (NASDAQ:WB). SINA will distribute one Weibo Class A ordinary share to the holder of each ten SINA ordinary shares. Holders of SINA ordinary shares that are settled through DTC will receive Class A ordinary shares represented by Weibo ADSs. The Weibo share distribution will be payable on or about October 12, 2016, to shareholders of record as of the close of business on September 12, 2016. Following the distribution of the Weibo shares, SINA’s equity stake in Weibo will decrease from approximately 54% (or approximately 78% by voting power) currently to approximately 51% (or approximately 75% by voting power) (Original Source)
Shares of Sina are up nearly 3% to $77.50 in pre-market trading Wednesday. SINA has a 1-year high of $76.67 and a 1-year low of $36.18. The stock’s 50-day moving average is $59.09 and its 200-day moving average is $50.92.
On the ratings front, Sina has been the subject of a number of recent research reports. In a report issued on August 24, Brean Murray Carret analyst Fawne Jiang reiterated a Buy rating on SINA. Separately, on August 10, Credit Suisse’s Evan Zhou initiated coverage with a Buy rating on the stock and has a price target of $80.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Fawne Jiang and Evan Zhou have a total average return of 10.4% and -11.5% respectively. Jiang has a success rate of 65.1% and is ranked #104 out of 4129 analysts, while Zhou has a success rate of 33.3% and is ranked #3248.
SINA Corp. engages in the provision of online and mobile media services. It operates through the following segments: Advertising, Mobile Value-Added Services (MVAS), and Other Non-Advertising Information. Its services include MVAS, online video, music streaming, online games, photo sharing, blog, email, classified listings, fee-based services, ecommerce and enterprise services.