Lenovo Group (OTCMKTS:LNVGY) Shares Gap Down - Here's Why

Key Points

• Lenovo Group shares gapped down pre-market, opening at $23.28 after a $24.56 close; the stock last traded at $24.37 on a volume of 66,972 shares.
• The company posted a quarterly EPS beat — $0.84 vs. $0.62 consensus — with revenue of $22.20 billion versus $20.65 billion, and analysts expect full-year EPS of 2.06.
• Analyst sentiment is mixed: Zacks upgraded Lenovo from "strong sell" to "hold" while JPMorgan cut it from "overweight" to "neutral," leaving a MarketBeat consensus rating of Hold.

Lenovo Group Ltd. (OTCMKTS:LNVGY - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $24.56, but opened at $23.28. Lenovo Group shares last traded at $24.37, with a volume of 66,972 shares changing hands.

Analyst Upgrades and Downgrades

LNVGY has been the topic of a number of recent analyst reports. Zacks Research raised Lenovo Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, February 10th. JPMorgan Chase & Co. cut Lenovo Group from an "overweight" rating to a "neutral" rating in a research report on Thursday, November 20th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat.com, Lenovo Group presently has a consensus rating of "Hold".

Lenovo Group Stock Performance

The firm has a market cap of $15.14 billion, a price-to-earnings ratio of 11.36, a price-to-earnings-growth ratio of 1.04 and a beta of 0.63. The company has a current ratio of 0.96, a quick ratio of 0.71 and a debt-to-equity ratio of 0.59. The stock's 50 day moving average is $23.54 and its 200 day moving average is $26.17.

Lenovo Group (OTCMKTS:LNVGY - Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The technology company reported $0.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.22. Lenovo Group had a net margin of 1.89% and a return on equity of 26.18%. The firm had revenue of $22.20 billion during the quarter, compared to the consensus estimate of $20.65 billion. Analysts anticipate that Lenovo Group Ltd. will post 2.06 earnings per share for the current year.

Lenovo Group Company Profile

Lenovo Group is a multinational technology company known primarily for the design, manufacture and sale of personal computers, servers, storage and smart devices. Its product portfolio spans consumer and commercial PCs (notable brands include ThinkPad, IdeaPad, Yoga and Legion), workstations, enterprise-class ThinkSystem servers and storage, as well as tablets, smartphones (notably through its Motorola Mobility acquisition), smart home devices and related software. Lenovo also provides IT services and solutions, including systems integration, managed services and lifecycle support for enterprise customers.

The company traces its origins to 1984 when it was founded in Beijing as Legend by Liu Chuanzhi; it later adopted the Lenovo name and expanded through a series of strategic acquisitions.

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