Covestro (OTCMKTS:COVTY) Shares Gap Up - Still a Buy?

Key Points

• Shares gapped up to $34.95 from a $33.67 close premarket, but trading was very light (127 shares) and the price sits near its 50- and 200-day moving averages (about $34.6).
• Large quarterly EPS miss: Covestro reported ($1.75) EPS vs. a ($0.08) consensus while revenue slightly beat at $3.44B, and the company shows a negative net margin (-6.97%) and negative ROE (-13.22%); analysts forecast just $0.03 EPS for the year.
• Mixed financial picture: Market cap is $14.25B with a negative PE (-13.56) but low leverage (debt/equity 0.24) and modest liquidity (current ratio 1.53, quick ratio 0.88), indicating balance-sheet strength despite profitability challenges.

Shares of Covestro AG Sponsored ADR (OTCMKTS:COVTY - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $33.67, but opened at $34.9545. Covestro shares last traded at $34.9545, with a volume of 127 shares trading hands.

Covestro Stock Down 0.4%

The company's 50-day moving average is $34.59 and its 200 day moving average is $34.67. The company has a market capitalization of $14.25 billion, a PE ratio of -13.56 and a beta of 0.95. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.88 and a current ratio of 1.53.

Covestro (OTCMKTS:COVTY - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($1.75) EPS for the quarter, missing the consensus estimate of ($0.08) by ($1.67). The firm had revenue of $3.44 billion for the quarter, compared to analysts' expectations of $3.42 billion. Covestro had a negative net margin of 6.97% and a negative return on equity of 13.22%. As a group, analysts anticipate that Covestro AG Sponsored ADR will post 0.03 EPS for the current year.

About Covestro

Covestro AG is a leading global manufacturer of high-performance polymer materials. Established in 2015 following its spin-off from Bayer MaterialScience, the company builds on a legacy of innovation dating back to the early 20th century. Covestro develops and produces a wide range of plastics and coatings designed to meet the evolving needs of various industrial sectors.

The company's core product portfolio includes polyurethanes, polycarbonates and specialty coatings, adhesives, sealants and elastomers.

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