Atlas Technical Consultants Inc. (NASDAQ:ATCX) on the Path to Ruin

Atlas Technical Consultants Inc. (NASDAQ:ATCX) on the Path to Ruin

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The Atlas Technical Consultants Inc. (ATCX) shares are trading at lower $6.88 and the avg recommendation for the stock is Moderate Buy.

To add more color to this target, the company’s high over the last year is $14.14 and the low is $5.00. Over the last 52 weeks, ATCX is down -51.36% while the S&P 500 is down -2.38%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, ATCX reported a profit of $50.4 million. Atlas Technical Consultants Inc. also saw revenues increase to $109.3 million. In addition, ATCX has free cash flow of -$13.65 million as of 03-2020 The company’s EBITDA came in at -$12.71 million which compares well with its peers.

ATCX booked profit margins of -21.60%, its Return on Equity (ROE) is -16.80%, and its Return on Assets is -9.70%. All told, it is clear that, ATCX 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. ATCX has a short ratio of 4.17 and outstanding shares of 29.74M.

Company Outlook

ATCX has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 40600.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.80. Atlas Technical Consultants Inc. ATCX also noted assets of $363.15 million at the end of the last quarter. Investors should also keep an eye on sector updates as ATCX has historically followed its peers on positive news.

All told, Atlas Technical Consultants Inc. ATCX has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ATCX 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.

Atlas Technical Consultants Inc. ATCX is now commanding a market cap of 235.02M and a float of 3.18M. ATCX 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 ATCX 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 ATCX, either long or short, and we have not been compensated for this article.