ORBCOMM Inc. (ORBC) shares are trading at lower $6.17 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $7.40.
To add more color to this target, the company’s high over the last year is $6.49 and the low is $1.24. Over the last 52 weeks, ORBC is up 51.23% while the S&P 500 is up 15.91%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, ORBC reported a profit of $33.15 million. ORBCOMM Inc. also saw revenues increase to $61.74 million. In addition, ORBC has free cash flow of $23.83 million as of 09-2020. The company’s EBITDA came in at $13.48 million which compares well with its peers.
ORBC booked profit margins of -8.50%, its Return on Equity (ROE) is -9.50%, and its Return on Assets is -3.80%. All told, it is clear that, ORBC 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. ORBC has a short ratio of 3.82 and outstanding shares of 77.96M.
ORBC has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.85 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.28. ORBCOMM Inc. ORBC also noted assets of $563.3 million at the end of the last quarter. Investors should also keep an eye on sector updates as ORBC has historically followed its peers on positive news.
All told, ORBCOMM Inc. ORBC has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ORBC 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.
ORBCOMM Inc. ORBC is now commanding a market cap of 479.04M and a float of 73.46M. ORBC 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 ORBC 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 ORBC, either long or short, and we have not been compensated for this article.