The Rejuvenation of Xunlei Limited (NASDAQ:XNET)

The Rejuvenation of Xunlei Limited (NASDAQ:XNET)

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The Xunlei Limited (XNET) shares are trading at lower $3.82.

To add more color to this target, the company’s high over the last year is $7.20 and the low is $1.87. Over the last 52 weeks, XNET is down -46.94% while the S&P 500 is up 1.47%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, XNET reported a profit of $23.84 million. Xunlei Limited also saw revenues increase to $48.22 million. In addition, XNET has free cash flow of $0.0 as of 03-2020 The company’s EBITDA came in at -$8.14 million which compares well with its peers.

XNET booked profit margins of -26.70%, its Return on Equity (ROE) is -16.20%, and its Return on Assets is -11.70%. All told, it is clear that, XNET 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. XNET has a short ratio of 4.23 and outstanding shares of 67.84M.

Company Outlook

XNET has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.75 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.74. Xunlei Limited XNET also noted assets of $404.26 million at the end of the last quarter. Investors should also keep an eye on sector updates as XNET has historically followed its peers on positive news.

All told, Xunlei Limited XNET has strung together solid data and demonstrated underlying fundamentals. At its current valuation, XNET 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.

Xunlei Limited XNET is now commanding a market cap of 257.62M and a float of 67.57M. XNET 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 XNET 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 XNET, either long or short, and we have not been compensated for this article.