The Lannett Company Inc. (LCI) shares are trading at lower $5.74 and the avg recommendation for the stock is Hold.
To add more color to this target, the company’s high over the last year is $15.52 and the low is $5.46. Over the last 52 weeks, LCI is down -63.02% while the S&P 500 is up 1.02%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, LCI reported a profit of $41.68 million. Lannett Company Inc. also saw revenues increase to $144.37 million. In addition, LCI has free cash flow of $37.28 million as of 03-2020. The company’s EBITDA came in at $23.42 million which compares well with its peers.
LCI booked profit margins of -5.80%, its Return on Equity (ROE) is -9.70%, and its Return on Assets is -2.70%. All told, it is clear that, LCI 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. LCI has a short ratio of 15.63 and outstanding shares of 38.71M.
LCI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.97 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.82. Lannett Company Inc. LCI also noted assets of $1.16 billion at the end of the last quarter. Investors should also keep an eye on sector updates as LCI has historically followed its peers on positive news.
All told, Lannett Company Inc. LCI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LCI 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.
Lannett Company Inc. LCI is now commanding a market cap of 249.40M and a float of 31.46M. LCI 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 LCI 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 LCI, either long or short, and we have not been compensated for this article.