Cango (NYSE:CANG) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Cango to a strong sell, even as the broader analyst view remains Moderate Buy with a consensus price target of $3.00.
• The stock surged 24.4% in the latest session, opening at $0.68, though it remains well below its 52-week high of $2.10.
• Cango reported much weaker-than-expected quarterly results, posting an EPS loss of ($1.60) versus an expected ($0.27) and revenue of $179.45 million far below analyst estimates.

Cango (NYSE:CANG - Get Free Report) was downgraded by equities researchers at Wall Street Zen to a "strong sell" rating in a research note issued to investors on Saturday.

Several other analysts also recently issued reports on CANG. Zacks Research raised shares of Cango from a "strong sell" rating to a "hold" rating in a report on Thursday, April 16th. HC Wainwright reaffirmed a "buy" rating and issued a $3.00 price target on shares of Cango in a report on Tuesday, February 10th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Cango presently has an average rating of "Moderate Buy" and a consensus target price of $3.00.

Cango Stock Up 24.4%

Shares of NYSE CANG opened at $0.68 on Friday. Cango has a 12-month low of $0.33 and a 12-month high of $2.10. The company has a market capitalization of $121.53 million, a PE ratio of -0.23 and a beta of 0.99. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.71 and a quick ratio of 0.71. The firm's 50-day moving average is $0.52 and its two-hundred day moving average is $1.36.

Cango (NYSE:CANG - Get Free Report) last announced its quarterly earnings results on Tuesday, March 17th. The company reported ($1.60) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.27) by ($1.33). Cango had a negative net margin of 83.92% and a negative return on equity of 49.13%. The business had revenue of $179.45 million during the quarter, compared to analysts' expectations of $1.24 billion. Equities analysts anticipate that Cango will post -0.5 EPS for the current fiscal year.

Hedge Funds Weigh In On Cango

Institutional investors have recently modified their holdings of the company. BNP Paribas Financial Markets raised its position in shares of Cango by 34.5% in the third quarter. BNP Paribas Financial Markets now owns 15,923 shares of the company's stock valued at $68,000 after buying an additional 4,082 shares during the last quarter. Jump Financial LLC acquired a new position in shares of Cango in the second quarter valued at approximately $246,000. CI Investments Inc. raised its position in shares of Cango by 206.7% in the fourth quarter. CI Investments Inc. now owns 105,456 shares of the company's stock valued at $158,000 after buying an additional 71,076 shares during the last quarter. Finally, Marshall Wace LLP acquired a new position in shares of Cango in the fourth quarter valued at approximately $1,677,000. Institutional investors and hedge funds own 4.22% of the company's stock.

Cango Company Profile

Cango Inc (“Cango”) is a leading smart automotive transaction service provider in China, headquartered in Shanghai. The company operates an online‐to‐offline platform that integrates vehicle sourcing, financing, distribution and insurance, offering a comprehensive ecosystem for automakers, dealers and consumers. Leveraging big data analytics and cloud computing, Cango connects buyers and sellers through its proprietary digital infrastructure, facilitating transparent and efficient transactions across the automotive value chain.

Cango's core offerings include auto financing solutions for new and used vehicles, extended consumer loans and wealth management products.

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