Renewed Optimism is Surrounding Spok Holdings Inc. (NASDAQ:SPOK)

Renewed Optimism is Surrounding Spok Holdings Inc. (NASDAQ:SPOK)


The Spok Holdings Inc. (SPOK) shares are trading at higher $9.58.

To add more color to this target, the company’s high over the last year is $15.57 and the low is $8.53. Over the last 52 weeks, SPOK is down -38.46% 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, SPOK reported a profit of $21.1 million. Spok Holdings Inc. also saw revenues increase to $37.27 million. In addition, SPOK has free cash flow of -$1.44 million as of 03-2020 The company’s EBITDA came in at -$1.96 million which compares well with its peers.

SPOK booked profit margins of -10.30%, its Return on Equity (ROE) is -6.30%, and its Return on Assets is -4.90%. All told, it is clear that, SPOK 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. SPOK has a short ratio of 1.42 and outstanding shares of 18.96M.

Company Outlook

SPOK has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 92460.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.85. Spok Holdings Inc. SPOK also noted assets of $310.8 million at the end of the last quarter. Investors should also keep an eye on sector updates as SPOK has historically followed its peers on positive news.

All told, Spok Holdings Inc. SPOK has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SPOK 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.

Spok Holdings Inc. SPOK is now commanding a market cap of 182.88M and a float of 18.53M. SPOK 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 SPOK 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 SPOK, either long or short, and we have not been compensated for this article.