Gridsum Holding Inc. (GSUM) shares are trading at higher $0.80.
To add more color to this target, the company’s high over the last year is $2.50 and the low is $0.24. Over the last 52 weeks, GSUM is down -62.44% while the S&P 500 is up 16.12%%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, GSUM reported a profit of $17.03 million. Gridsum Holding Inc. also saw revenues increase to $19.59 million. In addition, GSUM has free cash flow of -$44.96 million as of 12-2019. The company’s EBITDA came in at -$19.64 million which compares well with its peers.
GSUM Return on Equity (ROE) is 277.70%, and its Return on Assets is -59.90%. All told, it is clear that, GSUM 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. GSUM has a short ratio of 0.15 and outstanding shares of 33.89M.
GSUM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.42 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.32. Gridsum Holding Inc. GSUM also noted assets of $85.75 million at the end of the last quarter. Investors should also keep an eye on sector updates as GSUM has historically followed its peers on positive news.
All told, Gridsum Holding Inc. GSUM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, GSUM 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.
Gridsum Holding Inc. GSUM is now commanding a market cap of 22.30M and a float of 25.44M. GSUM 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 GSUM 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 GSUM, either long or short, and we have not been compensated for this article.