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

Key Points

• Shares gapped up premarket to $25.69 from a $24.815 close but later traded near $24.81 on light volume and were down about 1.4% intraday.
• Zacks upgraded Lenovo from "strong sell" to "hold," leaving the stock with a consensus "Hold" rating from two analysts.
• Earnings beat: Lenovo reported quarterly EPS of $0.84 versus $0.62 expected and revenue of $22.2B versus $20.65B, with a market cap around $15.3B and a PE of 11.45.

Lenovo Group Ltd. (OTCMKTS:LNVGY - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $24.8150, but opened at $25.69. Lenovo Group shares last traded at $24.81, with a volume of 3,235 shares.

Wall Street Analyst Weigh In

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

Lenovo Group Stock Down 1.4%

The company has a quick ratio of 0.71, a current ratio of 0.96 and a debt-to-equity ratio of 0.56. The company's fifty day moving average is $23.87 and its 200-day moving average is $25.64. The company has a market cap of $15.27 billion, a PE ratio of 11.45, a PEG ratio of 1.08 and a beta of 0.60.

Lenovo Group (OTCMKTS:LNVGY - Get Free Report) last issued its earnings results 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 25.60%. The company had revenue of $22.20 billion for the quarter, compared to analysts' expectations of $20.65 billion. On average, analysts predict that Lenovo Group Ltd. will post 2.06 EPS for the current 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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