AB Volvo (OTCMKTS:VLVLY) Shares Gap Up - Should You Buy?

Key Points

• AB Volvo shares gapped up pre-market, opening at $31.55 versus a $29.45 close and trading as high as $32.14, a roughly 7.9% intraday increase on volume of 36,560 shares.
• The company beat estimates for the quarter, reporting $0.50 EPS versus $0.46 expected and revenue of $14.01 billion versus $13.42 billion, with a net margin of 8.47% and return on equity of 23.01%.
• Analyst sentiment is mixed after recent rating changes—2 Strong Buy, 6 Hold and 2 Sell—with an overall average rating of Hold.

Shares of AB Volvo (OTCMKTS:VLVLY - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $29.45, but opened at $31.55. AB Volvo shares last traded at $32.14, with a volume of 36,560 shares changing hands.

Analysts Set New Price Targets

VLVLY has been the subject of several recent research reports. Deutsche Bank Aktiengesellschaft downgraded shares of AB Volvo from a "buy" rating to a "hold" rating in a research note on Tuesday, December 9th. Zacks Research raised AB Volvo from a "strong sell" rating to a "hold" rating in a report on Friday, December 19th. Morgan Stanley cut shares of AB Volvo from an "overweight" rating to an "equal weight" rating in a research note on Tuesday, January 13th. Citigroup raised AB Volvo from a "hold" rating to a "strong-buy" rating in a report on Friday, December 5th. Finally, Kepler Capital Markets reissued a "hold" rating on shares of AB Volvo in a report on Friday, January 16th. Two research analysts have rated the stock with a Strong Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold".

AB Volvo Trading Up 7.9%

The company has a debt-to-equity ratio of 0.79, a current ratio of 1.12 and a quick ratio of 0.85. The business has a 50-day moving average price of $36.32 and a two-hundred day moving average price of $31.90. The firm has a market cap of $64.64 billion, a PE ratio of 15.58, a PEG ratio of 6.93 and a beta of 1.13.

AB Volvo (OTCMKTS:VLVLY - Get Free Report) last announced its earnings results on Wednesday, January 28th. The company reported $0.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.46 by $0.04. The company had revenue of $14.01 billion during the quarter, compared to analysts' expectations of $13.42 billion. AB Volvo had a net margin of 8.47% and a return on equity of 23.01%. Analysts forecast that AB Volvo will post 2.38 EPS for the current year.

AB Volvo Company Profile

AB Volvo (Volvo Group) is a Swedish multinational manufacturing company headquartered in Gothenburg. The company designs, manufactures and sells a broad range of commercial vehicles and related systems, including heavy- and medium-duty trucks, buses, and construction equipment. In addition to vehicles and machinery, Volvo supplies marine and industrial power systems through its Volvo Penta division and offers parts, service, telematics and financing solutions to commercial customers worldwide.

Key product and business lines include Volvo Trucks and Mack-branded heavy trucks, a global bus and coach offering, Volvo Construction Equipment, and power systems for marine and industrial applications.

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