Mitsubishi UFJ Financial Group Inc. (MUFG) shares are trading at higher $4.19, while the current analyst price target stands at $6.12.
To add more color to this target, the company’s high over the last year is $5.54 and the low is $3.32. Over the last 52 weeks, MUFG is down -19.73% while the S&P 500 is up 10.68%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, MUFG reported a profit of $4.36 billion. Mitsubishi UFJ Financial Group Inc. also saw revenues increase to $7.11 billion. In addition, MUFG has free cash flow of $0.0 as of 06-2020.
MUFG booked profit margins of 8.80%, its Return on Equity (ROE) is 2.00%, and its Return on Assets is 0.10%. All told, it is clear that, MUFG 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. MUFG has a short ratio of 3.43 and outstanding shares of 12.84B.
MUFG has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at 0.24. Investors should also keep an eye on sector updates as MUFG has historically followed its peers on positive news.
All told, Mitsubishi UFJ Financial Group Inc. MUFG has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MUFG 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.
Mitsubishi UFJ Financial Group Inc. MUFG is now commanding a market cap of 56.21B and a float of 12.72B. MUFG 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 MUFG 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 MUFG, either long or short, and we have not been compensated for this article.