Elmet Group (NASDAQ:ELMT) Stock Jumps 5.3% - Should You Buy?

Key Points

• Elmet Group shares rose 5.3% to about $19.63, although trading volume was 88% below its average daily level.
• Analyst sentiment is broadly positive: four analysts rate the stock a Buy, with a consensus “Moderate Buy” rating and a $23.00 price target. Needham and Roth recently raised their targets to $25 and $26, respectively.
• The company reported stronger-than-expected quarterly results, including $0.18 EPS versus a $0.20 loss estimate and 35.2% year-over-year revenue growth. However, Elmet is a SPAC that has not yet completed a business combination, making its investment profile highly speculative.

Elmet Group Co. (NASDAQ:ELMT - Get Free Report)'s share price rose 5.3% during trading on Tuesday. The stock traded as high as $19.67 and last traded at $19.6270. 84,953 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 701,924 shares. The stock had previously closed at $18.64.

Analyst Ratings Changes

A number of analysts have commented on ELMT shares. Needham & Company LLC upped their price objective on shares of Elmet Group from $21.00 to $25.00 and gave the company a "buy" rating in a research note on Tuesday, September 15th. Roth Capital reaffirmed a "buy" rating and set a $26.00 price objective (up from $21.00) on shares of Elmet Group in a research report on Tuesday, September 15th. Canaccord Genuity Group boosted their price target on Elmet Group from $20.00 to $21.00 and gave the stock a "buy" rating in a research report on Monday, August 17th. Finally, Weiss Ratings initiated coverage on Elmet Group in a report on Monday, July 20th. They set a "sell (e)" rating on the stock. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $23.00.

Elmet Group Price Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 3.03 and a quick ratio of 1.60. The firm has a fifty day moving average of $17.28. The firm has a market cap of $597.02 million and a P/E ratio of 47.72.

Elmet Group (NASDAQ:ELMT - Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.20) by $0.38. The company had revenue of $66.40 million for the quarter. The company's quarterly revenue was up 35.2% on a year-over-year basis. As a group, sell-side analysts predict that Elmet Group Co. will post 0.72 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Wellington Management Group LLP bought a new position in shares of Elmet Group during the second quarter valued at $10,537,000. AWM Investment Company Inc. acquired a new stake in shares of Elmet Group in the second quarter valued at approximately $6,807,000. State Street Corp bought a new stake in shares of Elmet Group during the second quarter worth $2,640,000. Finally, Squarepoint Ops LLC acquired a new position in Elmet Group during the 2nd quarter valued at about $2,560,000.

Elmet Group Company Profile

Elmet Group, Inc is a special purpose acquisition company (SPAC) formed to pursue a business combination with one or more privately held businesses. Rather than operating a traditional commercial enterprise, the company's primary objective is to identify a target and complete a merger, share exchange, asset acquisition, share purchase, reorganization or similar transaction.

Until a business combination is completed, Elmet Group does not have an established portfolio of products or services, and its activities are generally limited to evaluating potential acquisition candidates, conducting due diligence and managing the transaction process.

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