The CooTek (Cayman) Inc. (CTK) shares are trading at higher $6.50 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $9.83.
To add more color to this target, the company’s high over the last year is $10.00 and the low is $4.55. Over the last 52 weeks, CTK is down -35.00% while the S&P 500 is down -2.55%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, CTK reported a profit of $102.43 million. CooTek (Cayman) Inc. also saw revenues increase to $107.01 million. In addition, CTK has free cash flow of $14.96 million as of 03-2020 The company’s EBITDA came in at -$9.76 million which compares well with its peers.
CTK booked profit margins of -19.10%, its Return on Equity (ROE) is -104.80%, and its Return on Assets is -45.30%. All told, it is clear that, CTK needs to be on your watchlist.
Find out when CTK reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CTK has a short ratio of 1.16 and outstanding shares of 62.09M.
CTK has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 49360.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.75. CooTek (Cayman) Inc. CTK also noted assets of $121.51 million at the end of the last quarter. Investors should also keep an eye on sector updates as CTK has historically followed its peers on positive news.
All told, CooTek (Cayman) Inc. CTK has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CTK represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
CooTek (Cayman) Inc. CTK is now commanding a market cap of 411.71M and a float of 4.44M. CTK is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CTK stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in CTK, either long or short, and we have not been compensated for this article.