The Kingold Jewelry Inc. (KGJI) shares are trading at higher $0.83.
To add more color to this target, the company’s high over the last year is $4.80 and the low is $0.43. Over the last 52 weeks, KGJI is down -82.75% while the S&P 500 is up 0.57%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, KGJI reported a profit of $15.17 million. Kingold Jewelry Inc. also saw revenues increase to $382.79 million. In addition, KGJI has free cash flow of -$70.22 million as of 09-2019. The company’s EBITDA came in at $15.35 million which compares well with its peers.
KGJI booked profit margins of 0.20%, its Return on Equity (ROE) is 0.60%, and its Return on Assets is 0.10%. All told, it is clear that, KGJI 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. KGJI has a short ratio of 0.03 and outstanding shares of 11.02M.
KGJI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.54 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.41. Kingold Jewelry Inc. KGJI also noted assets of $3.32 billion at the end of the last quarter. Investors should also keep an eye on sector updates as KGJI has historically followed its peers on positive news.
All told, Kingold Jewelry Inc. KGJI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, KGJI 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.
Kingold Jewelry Inc. KGJI is now commanding a market cap of 9.07M and a float of 7.57M. KGJI 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 KGJI 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 KGJI, either long or short, and we have not been compensated for this article.