The Argo Group International Holdings Ltd. (ARGO) shares are trading at higher $33.88 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $42.00.
To add more color to this target, the company’s high over the last year is $76.47 and the low is $25.00. Over the last 52 weeks, ARGO is down -55.70% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, ARGO reported a profit of $-21.6 million. Argo Group International Holdings Ltd. also saw revenues decrease to $436.5 million. In addition, ARGO has free cash flow of -$33.7 million as of 03-2020 The company’s EBITDA came in at -$8.9 million which compares well with its peers.
ARGO booked profit margins of -6.20%, its Return on Equity (ROE) is -6.50%, and its Return on Assets is -1.10%. All told, it is clear that, ARGO 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. ARGO has a short ratio of 2.21 and outstanding shares of 34.47M.
ARGO has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.36 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -3.46. Investors should also keep an eye on sector updates as ARGO has historically followed its peers on positive news.
All told, Argo Group International Holdings Ltd. ARGO has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ARGO 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.
Argo Group International Holdings Ltd. ARGO is now commanding a market cap of 1.19B and a float of 33.31M. ARGO 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 ARGO 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 ARGO, either long or short, and we have not been compensated for this article.