Lenovo Group (OTCMKTS:LNVGY) Shares Gap Up - Still a Buy?

Key Points

• Lenovo Group's share price gapped up from $27.40 to $28.75 before opening on Friday, with a last recorded trading price of $27.69.
• The company reported a better-than-expected earnings of $0.44 per share for the quarter, exceeding analysts' estimates of $0.40, alongside a revenue of $16.98 billion.
• Lenovo Group has increased its dividend to $0.7593, significantly up from $0.20, resulting in a dividend yield of 366.0% with a payout ratio of 70.70%.

Lenovo Group Ltd. (OTCMKTS:LNVGY - Get Free Report)'s share price gapped up before the market opened on Friday . The stock had previously closed at $27.40, but opened at $28.75. Lenovo Group shares last traded at $27.69, with a volume of 2,675 shares changing hands.

Lenovo Group Trading Up 1.1%

The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.67 and a current ratio of 0.93. The stock's 50-day simple moving average is $25.57 and its 200-day simple moving average is $26.08. The firm has a market capitalization of $17.53 billion, a PE ratio of 11.31, a P/E/G ratio of 0.60 and a beta of 0.75.

Lenovo Group (OTCMKTS:LNVGY - Get Free Report) last released its earnings results on Thursday, May 22nd. The technology company reported $0.44 earnings per share for the quarter, topping analysts' consensus estimates of $0.40 by $0.04. The firm had revenue of $16.98 billion for the quarter, compared to the consensus estimate of $15.77 billion. Lenovo Group had a net margin of 2.27% and a return on equity of 29.13%. As a group, sell-side analysts expect that Lenovo Group Ltd. will post 2.06 EPS for the current fiscal year.

Lenovo Group Increases Dividend

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