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Tuesday, September 22, 2020

Sequential Brands Group Inc. (NASDAQ:SQBG) Recent Earnings Shows Major Concern

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The Sequential Brands Group Inc. (SQBG) shares are trading at lower $0.17 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 $0.62 and the low is $0.10. Over the last 52 weeks, SQBG is down -72.08% while the S&P 500 is down -0.64%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, SQBG reported a profit of $103.3 million. Sequential Brands Group Inc. also saw revenues increase to $20.23 million. In addition, SQBG has free cash flow of $1.22 million as of 03-2020. The company’s EBITDA came in at -$72.59 million which compares well with its peers.

SQBG Return on Equity (ROE) is -119.00%, and its Return on Assets is -16.90%. All told, it is clear that, SQBG 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. SQBG has a short ratio of 0.57 and outstanding shares of 65.42M.

Company Outlook

SQBG has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 4.48 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.76. Sequential Brands Group Inc. SQBG also noted assets of $626.19 million at the end of the last quarter. Investors should also keep an eye on sector updates as SQBG has historically followed its peers on positive news.

All told, Sequential Brands Group Inc. SQBG has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SQBG 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.

Sequential Brands Group Inc. SQBG is now commanding a market cap of 13.81M and a float of 45.37M. SQBG 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 SQBG 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 SQBG, either long or short, and we have not been compensated for this article.

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