Lenovo Group (OTCMKTS:LNVGY) Shares Gap Down - What's Next?

Key Points

• Shares gapped down premarket, opening at $27.90 versus the prior close of $29.20 and last trading at $27.97 on light volume (1,540 shares).
• Zacks Research upgraded Lenovo from "strong sell" to "hold" on Feb. 10, and the stock carries a consensus rating of "Hold" from analysts.
• Quarterly results beat expectations—EPS $0.84 vs. $0.62 estimate and revenue $22.20B vs. $20.65B—while the company trades at a PE of 12.95, ROE of 25.6%, and analysts forecast FY EPS of $2.25.

Lenovo Group Ltd. (OTCMKTS:LNVGY - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $29.20, but opened at $27.90. Lenovo Group shares last traded at $27.97, with a volume of 1,540 shares traded.

Analyst Upgrades and Downgrades

Separately, Zacks Research raised shares of Lenovo Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, February 10th. Two analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company has a consensus rating of "Hold".

Lenovo Group Price Performance

The stock's 50-day moving average is $24.57 and its 200 day moving average is $25.39. The stock has a market capitalization of $17.27 billion, a PE ratio of 12.95, a P/E/G ratio of 1.27 and a beta of 0.60. The company has a quick ratio of 0.71, a current ratio of 0.96 and a debt-to-equity ratio of 0.56.

Lenovo Group (OTCMKTS:LNVGY - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The technology company reported $0.84 EPS for the quarter, beating analysts' consensus estimates of $0.62 by $0.22. Lenovo Group had a net margin of 1.89% and a return on equity of 25.60%. The firm had revenue of $22.20 billion for the quarter, compared to the consensus estimate of $20.65 billion. As a group, equities analysts predict that Lenovo Group Ltd. will post 2.25 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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