NEW YORK (TheStreet) -- Shares of Sina (SINA) - Get Report were higher on heavy trading volume late-afternoon Wednesday as the Chinese online media company said it's distributing some of its stock in Weibo (WB) to shareholders.
Sina, who owns the Chinese microblogger, will swap one Weibo Class A ordinary share for every 10 Sina shares, the company said in a statement. It will reduce Sina's stake to approximately 51% from 54%.
The company said Weibo shares will be paid out on or about October 12.
Alibaba (BABA) also holds an approximately 32% stake in Weibo.
About 3.07 million shares of Sina have traded so far today vs. its average volume of 1 million shares per day.
Shares of Weibo were lower in late-afternoon trading on Wednesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The team rates Sina as a Buy with a ratings score of B. This is driven by a number of strengths, which it believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. The team feels its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: