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

Key Points

• Shares gapped up at the open to $24.70 from $24.07 but were last quoted at $23.88, reflecting intraday volatility (volume ~6,061 shares).
• Lenovo beat quarterly expectations, reporting EPS $0.84 vs. $0.62 and revenue $22.20B vs. $20.65B, with a net margin of 1.89% and ROE of 25.6%; analysts forecast FY EPS of 2.06.
• Analyst coverage is mixed—Zacks upgraded Lenovo to a Hold while JPMorgan downgraded it to Neutral—leaving a MarketBeat consensus rating of "Hold."

Shares of Lenovo Group Ltd. (OTCMKTS:LNVGY - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $24.07, but opened at $24.70. Lenovo Group shares last traded at $23.88, with a volume of 6,061 shares trading hands.

Analysts Set New Price Targets

LNVGY has been the subject of several analyst reports. Zacks Research upgraded Lenovo Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, February 10th. JPMorgan Chase & Co. downgraded shares of Lenovo Group from an "overweight" rating to a "neutral" rating in a report on Thursday, November 20th. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the stock has a consensus rating of "Hold".

Lenovo Group Price Performance

The company has a debt-to-equity ratio of 0.56, a quick ratio of 0.71 and a current ratio of 0.96. The company has a fifty day simple moving average of $23.56 and a 200 day simple moving average of $26.13. The stock has a market capitalization of $14.76 billion, a price-to-earnings ratio of 11.07, a P/E/G ratio of 1.06 and a beta of 0.63.

Lenovo Group (OTCMKTS:LNVGY - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The technology company reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.22. The business had revenue of $22.20 billion during the quarter, compared to analysts' expectations of $20.65 billion. Lenovo Group had a net margin of 1.89% and a return on equity of 25.60%. Equities research analysts forecast that Lenovo Group Ltd. will post 2.06 EPS for the current fiscal 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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