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

Key Points

• Shares gapped up pre-market, opening at $29.55 versus the prior close of $27.76 and last trading around $29.69 on a volume of about 4,804 shares.
• Q‑quarterly beat: Lenovo reported EPS of $0.84 vs. $0.62 expected and revenue of $22.20B vs. $20.65B, with a strong return on equity (25.6%) but a modest net margin (1.89%); analysts project FY EPS of about 2.25.
• Analyst view and valuation: Zacks upgraded Lenovo from "strong sell" to "hold" and the consensus rating is "Hold"; the stock trades at a P/E of 13.74 with a market cap near $18.3B and 50/200-day moving averages of $24.65/$25.37.

Shares of Lenovo Group Ltd. (OTCMKTS:LNVGY - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $27.76, but opened at $29.55. Lenovo Group shares last traded at $29.6860, with a volume of 4,804 shares.

Analyst Upgrades and Downgrades

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

Lenovo Group Stock Performance

The firm has a fifty day moving average of $24.65 and a 200-day moving average of $25.37. The firm has a market cap of $18.32 billion, a P/E ratio of 13.74, a PEG ratio of 1.25 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 posted its quarterly earnings results on Wednesday, February 11th. The technology company reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.22. The business had revenue of $22.20 billion for the quarter, compared to analysts' expectations of $20.65 billion. Lenovo Group had a return on equity of 25.60% and a net margin of 1.89%. Research analysts predict that Lenovo Group Ltd. will post 2.25 earnings per share 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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