Capcom (OTCMKTS:CCOEY) Shares Gap Down - Time to Sell?

Key Points

• Shares gapped down about 11.5% premarket, opening at $10.45 after a prior close of $11.70 and last trading around $10.47 on roughly 48,700 shares.
• Capcom beat EPS estimates ($0.09 vs. $0.07) but slightly missed revenue expectations ($221.8M vs. $223.4M); the company shows strong profitability (ROE 26.93%, net margin 32.82%), high liquidity (quick ratio 5.21, current ratio 8.64) and minimal leverage (debt/equity 0.01).
• Analyst sentiment is mixed-to-positive with UBS raising the stock to "hold," one Buy and one Hold on file, a consensus "Moderate Buy," and valuation metrics including a market cap of ~$11.03B and a P/E of ~20.3.

Capcom Co., Ltd. (OTCMKTS:CCOEY - Get Free Report)'s stock price gapped down prior to trading on Thursday . The stock had previously closed at $11.70, but opened at $10.45. Capcom shares last traded at $10.4705, with a volume of 48,704 shares trading hands.

Wall Street Analysts Forecast Growth

Separately, UBS Group raised shares of Capcom to a "hold" rating in a research note on Wednesday, November 5th. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy".

Capcom Trading Down 11.5%

The company has a quick ratio of 5.21, a current ratio of 8.64 and a debt-to-equity ratio of 0.01. The company has a market cap of $11.03 billion, a price-to-earnings ratio of 20.29 and a beta of 0.73. The firm has a 50 day moving average price of $11.20 and a two-hundred day moving average price of $12.43.

Capcom (OTCMKTS:CCOEY - Get Free Report) last announced its earnings results on Tuesday, January 27th. The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.07 by $0.02. Capcom had a return on equity of 26.93% and a net margin of 32.82%.The business had revenue of $221.79 million for the quarter, compared to analysts' expectations of $223.38 million. As a group, equities analysts forecast that Capcom Co., Ltd. will post 0.4 earnings per share for the current year.

Capcom Company Profile

Capcom Co, Ltd. is a Japanese video game developer and publisher headquartered in Osaka. Founded in 1979 by Kenzo Tsujimoto, the company has grown into a leading global entertainment brand, creating interactive software and associated licensing businesses. Capcom operates through a network of subsidiaries and distribution partners across North America, Europe and Asia, serving both console and PC markets as well as the expanding digital download sector.

The core of Capcom’s business lies in the development, publishing and licensing of video game titles.

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