Lizhi Inc. (LIZI) shares are trading at higher $2.26 and the avg recommendation for the stock is Strong Buy.
To add more color to this target, the company’s high over the last year is $15.25 and the low is $2.17 while the S&P 500 is up 14.20%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, LIZI reported a profit of $12.13 million. Lizhi Inc. also saw revenues increase to $49.67 million. In addition, LIZI has free cash flow of $0.0 as of 06-2020. The company’s EBITDA came in at -$3.54 million which compares well with its peers.
LIZI booked profit margins of -73.30%, its Return on Equity (ROE) is 124.30%, and its Return on Assets is -358.70%. All told, it is clear that, LIZI 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. LIZI has a short ratio of 1.55 and outstanding shares of 46.07M.
LIZI 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 -3.32. Lizhi Inc. LIZI also noted assets of $60.47 million at the end of the last quarter. Investors should also keep an eye on sector updates as LIZI has historically followed its peers on positive news.
All told, Lizhi Inc. LIZI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LIZI 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.
Lizhi Inc. LIZI is now commanding a market cap of 105.90M and a float of 22.61M. LIZI 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 LIZI 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 LIZI, either long or short, and we have not been compensated for this article.