Lenovo Group (OTCMKTS:LNVGY) Shares Gap Up - Should You Buy?

Key Points

• Shares gapped up — Lenovo opened at $24.595 after a $23.67 close and was last trading around $24.75 (up ~2.1%) on light volume (~8,865 shares).
• Strong quarterly beat — Lenovo reported $0.84 EPS vs. $0.62 expected and revenue of $22.20 billion vs. $20.65 billion, while posting a 26.18% ROE and a slim 1.89% net margin.
• Analyst view remains cautious — JPMorgan cut the stock to Neutral, Zacks moved it to Hold, and the consensus rating per MarketBeat is currently "Hold."

Lenovo Group Ltd. (OTCMKTS:LNVGY - Get Free Report)'s share price gapped up prior to trading on Wednesday . The stock had previously closed at $23.67, but opened at $24.5950. Lenovo Group shares last traded at $24.75, with a volume of 8,865 shares changing hands.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. JPMorgan Chase & Co. cut Lenovo Group from an "overweight" rating to a "neutral" rating in a research report on Thursday, November 20th. Zacks Research raised Lenovo Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, February 10th. Two equities 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 Trading Up 2.1%

The stock has a market cap of $15.30 billion, a PE ratio of 11.47, a PEG ratio of 1.03 and a beta of 0.63. The business has a 50-day moving average of $23.53 and a 200 day moving average of $26.29. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.71 and a current ratio of 0.96.

Lenovo Group (OTCMKTS:LNVGY - Get Free Report) last released its earnings results on Wednesday, February 11th. The technology company reported $0.84 EPS for the quarter, beating the consensus estimate of $0.62 by $0.22. Lenovo Group had a return on equity of 26.18% and a net margin of 1.89%.The firm had revenue of $22.20 billion during the quarter, compared to analyst estimates of $20.65 billion. Equities research analysts predict that Lenovo Group Ltd. will post 2.06 EPS for the current fiscal year.

About Lenovo Group

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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