Cango (NYSE:CANG) Upgraded to Hold at Zacks Research

Key Points

• Zacks Research upgraded Cango from "strong sell" to "hold", while analyst opinions remain mixed — the consensus rating is "Moderate Buy" with a $3.00 target price.
• The most recent quarter showed a steep deterioration in fundamentals: Cango reported a ($1.60) EPS vs. a ($0.27) estimate and revenue of $179.45M versus $1.24B expected, with a net margin of -83.92% and ROE of -49.13%.
• Shares trade around $0.56 (12‑month range $0.33–$2.10) with a market cap of about $115.6M and low institutional ownership at roughly 4.22%.

Cango (NYSE:CANG - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a report released on Thursday,Zacks.com reports.

A number of other equities research analysts also recently weighed in on the company. Greenridge Global upgraded Cango to a "strong-buy" rating in a report on Monday, December 22nd. HC Wainwright restated a "buy" rating and set a $3.00 price objective on shares of Cango in a research report on Tuesday, February 10th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Cango has an average rating of "Moderate Buy" and a consensus target price of $3.00.

Cango Price Performance

Shares of NYSE CANG opened at $0.56 on Thursday. Cango has a twelve month low of $0.33 and a twelve month high of $2.10. The company has a current ratio of 0.71, a quick ratio of 1.20 and a debt-to-equity ratio of 1.40. The company has a market capitalization of $115.62 million, a price-to-earnings ratio of -0.19 and a beta of 0.92. The business has a 50 day simple moving average of $0.61 and a 200-day simple moving average of $1.73.

Cango (NYSE:CANG - Get Free Report) last issued its quarterly earnings results on Tuesday, March 17th. The company reported ($1.60) earnings per share for the quarter, missing analysts' consensus estimates 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 firm had revenue of $179.45 million during the quarter, compared to the consensus estimate of $1.24 billion.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in CANG. Marshall Wace LLP acquired a new position in Cango during the 4th quarter worth $1,677,000. CI Investments Inc. lifted its holdings 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 period. Jump Financial LLC acquired a new stake in shares of Cango in the second quarter valued at $246,000. Finally, BNP Paribas Financial Markets lifted its holdings 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 period. 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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