Lenovo Group (OTCMKTS:LNVGY) Shares Gap Down - Should You Sell?

Key Points

• Lenovo Group shares gapped down significantly, opening at $28.00, after closing at $29.54, and last traded at $27.65, indicating a 6.8% drop.
• The company reported earnings per share of $0.44 for the last quarter, exceeding expectations of $0.40, with revenues of $16.98 billion compared to an anticipated $15.77 billion.
• Lenovo Group has announced an upcoming dividend payment of $0.7593 per share, significantly higher than the previous dividend of $0.20, representing a yield of 366.0%.

Lenovo Group Ltd. (OTCMKTS:LNVGY - Get Free Report)'s share price gapped down before the market opened on Thursday . The stock had previously closed at $29.54, but opened at $28.00. Lenovo Group shares last traded at $27.65, with a volume of 5,960 shares traded.

Lenovo Group Price Performance

The company's 50-day moving average is $25.57 and its 200-day moving average is $26.08. The firm has a market cap of $17.35 billion, a price-to-earnings ratio of 11.19, a price-to-earnings-growth ratio of 0.60 and a beta of 0.75. The company has a current ratio of 0.93, a quick ratio of 0.67 and a debt-to-equity ratio of 0.65.

Lenovo Group (OTCMKTS:LNVGY - Get Free Report) last announced its quarterly earnings data on Thursday, May 22nd. The technology company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.40 by $0.04. Lenovo Group had a net margin of 2.27% and a return on equity of 29.13%. The business had revenue of $16.98 billion during the quarter, compared to the consensus estimate of $15.77 billion. Equities research analysts predict that Lenovo Group Ltd. will post 2.06 earnings per share for the current year.

Lenovo Group Increases Dividend

The firm also recently announced a dividend, which will be paid on Wednesday, August 20th. Shareholders of record on Friday, August 1st will be paid a dividend of $0.7593 per share. The ex-dividend date of this dividend is Thursday, July 31st. This is a positive change from Lenovo Group's previous dividend of $0.20. This represents a yield of 366.0%. Lenovo Group's payout ratio is presently 60.40%.

Lenovo Group Company Profile

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. The company offers commercial and consumer personal computers, as well as servers and workstations; and a family of mobile Internet devices, including tablets and smartphones.