The Barnes & Noble Education Inc. (BNED) shares are trading at higher $2.43 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $3.25.
To add more color to this target, the company’s high over the last year is $5.10 and the low is $1.11. Over the last 52 weeks, BNED is down -52.35% 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, BNED reported a profit of $118.53 million. Barnes & Noble Education Inc. also saw revenues increase to $502.29 million. In addition, BNED has free cash flow of $59.51 million as of 01-2020. The company’s EBITDA came in at $13.48 million which compares well with its peers.
BNED booked profit margins of -2.30%, its Return on Equity (ROE) is -9.90%, and its Return on Assets is -3.40%. All told, it is clear that, BNED 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. BNED has a short ratio of 4.38 and outstanding shares of 48.30M.
BNED has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.08 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.94. Barnes & Noble Education Inc. BNED also noted assets of $1.43 billion at the end of the last quarter. Investors should also keep an eye on sector updates as BNED has historically followed its peers on positive news.
All told, Barnes & Noble Education Inc. BNED has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BNED 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.
Barnes & Noble Education Inc. BNED is now commanding a market cap of 90.30M and a float of 34.92M. BNED 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 BNED 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 BNED, either long or short, and we have not been compensated for this article.