Hitachi (OTCMKTS:HTHIY) Shares Gap Up - What's Next?

Key Points

• Hitachi gapped up Wednesday, opening at $33.41 after a $31.84 close and last trading around $32.97 on light volume (~11,551 shares).
• Analyst sentiment improved after Nomura upgraded the stock to a "strong-buy"; the consensus rating is now a "Moderate Buy" (one Strong Buy, two Holds).
• Fundamentals and recent results are solid: market cap ~$151B, P/E 22.3, low debt-to-equity (0.08), and a quarterly earnings beat with $0.24 EPS vs. $0.23 expected and revenue of $17.68B vs. $16.85B estimated.

Hitachi Ltd. (OTCMKTS:HTHIY - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $31.84, but opened at $33.41. Hitachi shares last traded at $32.97, with a volume of 11,551 shares traded.

Analysts Set New Price Targets

Separately, Nomura raised shares of Hitachi to a "strong-buy" rating in a research report on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy".

Hitachi Price Performance

The company has a market capitalization of $151.04 billion, a P/E ratio of 22.28, a price-to-earnings-growth ratio of 0.89 and a beta of 0.93. The company's 50-day moving average price is $31.63 and its two-hundred day moving average price is $31.71. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.08 and a quick ratio of 0.81.

Hitachi (OTCMKTS:HTHIY - Get Free Report) last issued its quarterly earnings data on Thursday, January 29th. The conglomerate reported $0.24 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.01. The company had revenue of $17.68 billion for the quarter, compared to analyst estimates of $16.85 billion. Hitachi had a net margin of 8.05% and a return on equity of 13.27%. As a group, sell-side analysts expect that Hitachi Ltd. will post 0.47 EPS for the current year.

About Hitachi

Hitachi, Ltd. OTCMKTS: HTHIY is a Tokyo-headquartered multinational conglomerate that operates a diversified portfolio of businesses spanning information technology, energy and power systems, industrial machinery, transportation systems, and digital solutions. Founded in 1910 by engineer Namihei Odaira in the city of Hitachi, Ibaraki Prefecture, the company grew from an electrical repair shop and early induction motor manufacturing into a global engineering and technology group. Hitachi positions itself as a "social innovation" company, combining operational technology, information technology and domain knowledge to address infrastructure and industry challenges.

The company's activities include design and manufacture of heavy industrial equipment and construction machinery, delivery of rail and urban transportation systems, development and provision of power generation and grid equipment, and enterprise IT services including systems integration and cloud solutions.

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