Denso (OTCMKTS:DNZOY) Shares Gap Down - Should You Sell?

Key Points

• Denso Corp.'s shares experienced a significant gap down, opening at $13.92 after closing at $14.50 prior to trading on Monday.
• Recent rating updates for Denso indicate a shift, with Zacks upgrading the stock from "strong sell" to "hold", while UBS downgraded it from "strong-buy" to "hold".
• The company reported $0.20 EPS for the last quarter, missing the consensus estimate of $0.28, with a revenue of $11.78 billion, significantly lower than analysts' expectations.

Denso Corp. (OTCMKTS:DNZOY - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $14.50, but opened at $13.92. Denso shares last traded at $14.61, with a volume of 1,043 shares trading hands.

Wall Street Analysts Forecast Growth

Several research firms have commented on DNZOY. Zacks Research upgraded Denso from a "strong sell" rating to a "hold" rating in a research note on Monday, September 1st. UBS Group cut Denso from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 21st. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company has a consensus rating of "Hold".

Denso Stock Performance

The firm has a market capitalization of $43.29 billion, a price-to-earnings ratio of 15.65 and a beta of 0.97. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.80 and a quick ratio of 1.25. The firm has a 50 day moving average price of $14.08 and a 200-day moving average price of $13.35.

Denso (OTCMKTS:DNZOY - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.08). The business had revenue of $11.78 billion during the quarter, compared to analysts' expectations of $1,767.34 billion. Denso had a net margin of 5.62% and a return on equity of 7.67%. As a group, sell-side analysts expect that Denso Corp. will post 1.05 earnings per share for the current fiscal year.

Denso Company Profile

DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units.

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