Pioneer Power Solutions Inc. (PPSI) shares are trading at higher $4.40, while the current analyst price target stands at $7.50.
To add more color to this target, the company’s high over the last year is $9.43 and the low is $0.90. Over the last 52 weeks, PPSI is up 37.50% while the S&P 500 is up 18.53%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, PPSI reported a profit of $0.74 million. Pioneer Power Solutions Inc. also saw revenues increase to $4.05 million. In addition, PPSI has free cash flow of -$1.33 million as of 09-2020. The company’s EBITDA came in at -$0.18 million which compares well with its peers.
PPSI booked profit margins of -59.20%, its Return on Equity (ROE) is -84.50%, and its Return on Assets is -50.00%. All told, it is clear that, PPSI 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. PPSI has a short ratio of 0.01 and outstanding shares of 8.73M.
PPSI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 20.14 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.29. Pioneer Power Solutions Inc. PPSI also noted assets of $24.19 million at the end of the last quarter. Investors should also keep an eye on sector updates as PPSI has historically followed its peers on positive news.
All told, Pioneer Power Solutions Inc. PPSI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PPSI 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.
Pioneer Power Solutions Inc. PPSI is now commanding a market cap of 30.89M and a float of 3.01M. PPSI 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 PPSI 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 PPSI, either long or short, and we have not been compensated for this article.