The cbdMD Inc. (YCBD) shares are trading at lower $3.36 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $4.27.
To add more color to this target, the company’s high over the last year is $5.35 and the low is $0.50. Over the last 52 weeks, YCBD is down -37.20% while the S&P 500 is up 1.39%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, YCBD reported a profit of $6.67 million. cbdMD Inc. also saw revenues increase to $9.4 million. In addition, YCBD has free cash flow of -$10.94 million as of 03-2020. The company’s EBITDA came in at -$5.43 million which compares well with its peers.
YCBD booked profit margins of 30.70%, its Return on Equity (ROE) is 21.10%, and its Return on Assets is 10.90%. All told, it is clear that, YCBD needs to be on your watchlist.
Find out when YCBD reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
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. YCBD has a short ratio of 0.55 and outstanding shares of 36.50M.
YCBD has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.98 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.27. cbdMD Inc. YCBD also noted assets of $112.58 million at the end of the last quarter. Investors should also keep an eye on the CBD sector and updates on companies operating in the field such as YCBD and Gold Bee has historically followed its peers on positive news.
All told, cbdMD Inc. YCBD has strung together solid data and demonstrated underlying fundamentals. At its current valuation, YCBD 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.
cbdMD Inc. YCBD is now commanding a market cap of 167.36M and a float of 31.96M. YCBD 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 YCBD 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 YCBD, either long or short, and we have not been compensated for this article.