Sogou Inc. (SOGO) shares are trading at higher $8.89 and the avg recommendation for the stock is Hold, while the current analyst price target stands at $5.92.
To add more color to this target, the company’s high over the last year is $8.94 and the low is $2.95. Over the last 52 weeks, SOGO is up 77.80% while the S&P 500 is up 14.52%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SOGO reported a profit of $64.24 million. Sogou Inc. also saw revenues increase to $261.18 million. In addition, SOGO has free cash flow of $0.0 as of 06-2020. The company’s EBITDA came in at -$26.1 million which compares well with its peers.
SOGO booked profit margins of -4.50%, its Return on Equity (ROE) is -4.60%, and its Return on Assets is -3.10%. All told, it is clear that, SOGO 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. SOGO has a short ratio of 0.63 and outstanding shares of 383.56M.
SOGO has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.76 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.13. Sogou Inc. SOGO also noted assets of $1.56 billion at the end of the last quarter. Investors should also keep an eye on sector updates as SOGO has historically followed its peers on positive news.
All told, Sogou Inc. SOGO has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SOGO 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.
Sogou Inc. SOGO is now commanding a market cap of 3.44B and a float of 86.51M. SOGO 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 SOGO 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 SOGO, either long or short, and we have not been compensated for this article.