Park City Group Inc. (NASDAQ:PCYG) Stock is Soaring, Here is Why

Park City Group Inc. (NASDAQ:PCYG) Stock is Soaring, Here is Why

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The Park City Group Inc. (PCYG) shares are trading at higher $5.09 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $7.00.

To add more color to this target, the company’s high over the last year is $8.25 and the low is $3.33. Over the last 52 weeks, PCYG is down -38.31% 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, PCYG reported a profit of $3.26 million. Park City Group Inc. also saw revenues increase to $4.63 million. In addition, PCYG has free cash flow of $1.63 million as of 03-2020 The company’s EBITDA came in at $0.45 million which compares well with its peers.

PCYG booked profit margins of 3.70%, its Return on Equity (ROE) is 1.70%, and its Return on Assets is 1.30%. All told, it is clear that, PCYG needs to be on your watchlist.

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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. PCYG has a short ratio of 3.11 and outstanding shares of 19.59M.

Company Outlook

PCYG has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 71500.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.04. Park City Group Inc. PCYG also noted assets of $52.14 million at the end of the last quarter. Investors should also keep an eye on sector updates as PCYG has historically followed its peers on positive news.

All told, Park City Group Inc. PCYG has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PCYG 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.

Park City Group Inc. PCYG is now commanding a market cap of 102.56M and a float of 11.94M. PCYG 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 PCYG 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 PCYG, either long or short, and we have not been compensated for this article.