S&W Seed Company (NASDAQ:SANW) Stock is Soaring, Here is Why

S&W Seed Company (NASDAQ:SANW) Stock is Soaring, Here is Why


The S&W Seed Company (SANW) shares are trading at higher $2.26 and the avg recommendation for the stock is Strong Buy.

To add more color to this target, the company’s high over the last year is $3.13 and the low is $1.67. Over the last 52 weeks, SANW is down -27.80% 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, SANW reported a profit of $6.42 million. S&W Seed Company also saw revenues increase to $29.09 million. In addition, SANW has free cash flow of -$6.49 million as of 03-2020 The company’s EBITDA came in at -$1.41 million which compares well with its peers.

SANW booked profit margins of -18.00%, its Return on Equity (ROE) is -19.60%, and its Return on Assets is -11.80%. All told, it is clear that, SANW 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. SANW has a short ratio of 0.49 and outstanding shares of 33.39M.

Company Outlook

SANW has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 23110.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.54. S&W Seed Company SANW also noted assets of $167.6 million at the end of the last quarter. Investors should also keep an eye on sector updates as SANW has historically followed its peers on positive news.

All told, S&W Seed Company SANW has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SANW 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.

S&W Seed Company SANW is now commanding a market cap of 74.49M and a float of 32.11M. SANW 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 SANW 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 SANW, either long or short, and we have not been compensated for this article.