WEG (OTCMKTS:WEGZY) Sets New 1-Year Low - Here's Why

Key Points

• WEG shares fell to a new 52-week low, trading as low as $7.10 and last changing hands at $7.81, well below the previous close of $8.5405.
• Analyst sentiment remains cautious: Goldman Sachs upgraded the stock to “neutral,” Zacks Research raised it to “hold,” and the overall consensus rating is “Hold,” with one Buy and two Hold ratings.
• Despite the share-price weakness, WEG’s latest quarterly results met EPS expectations at $0.08 and exceeded revenue estimates with $2.11 billion in sales; the company reported a 32.99% return on equity and a 15.39% net margin.

Weg S.A. (OTCMKTS:WEGZY - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday. The stock traded as low as $7.10 and last traded at $7.81, with a volume of 17,699 shares changing hands. The stock had previously closed at $8.5405.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on WEGZY shares. The Goldman Sachs Group upgraded shares of WEG from a "sell" rating to a "neutral" rating in a research report on Tuesday, July 28th. Zacks Research raised shares of WEG to a "hold" rating in a report on Tuesday, July 21st. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold".

WEG Price Performance

The company has a debt-to-equity ratio of 0.12, a current ratio of 1.59 and a quick ratio of 1.02. The company's 50 day moving average is $9.81 and its 200 day moving average is $9.33. The stock has a market cap of $34.08 billion and a price-to-earnings ratio of 28.00.

WEG (OTCMKTS:WEGZY - Get Free Report) last posted its quarterly earnings data on Wednesday, October 21st. The company reported $0.08 EPS for the quarter, meeting analysts' consensus estimates of $0.08. The business had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.07 billion. WEG had a return on equity of 32.99% and a net margin of 15.39%. Research analysts forecast that Weg S.A. will post 0.31 earnings per share for the current fiscal year.

About WEG

WEG SA is a Brazilian industrial company that designs and manufactures electrical and electromechanical equipment. Its product portfolio includes electric motors, generators, transformers, drives, controls, automation systems, switchgear and other equipment used in industrial, commercial and infrastructure applications.

The company also provides solutions for electrical power generation, transmission and distribution, renewable energy, industrial automation and energy efficiency. WEG serves customers in industries such as oil and gas, mining, water and wastewater, manufacturing, transportation, utilities and construction.

Founded in 1961 in Jaraguá do Sul, Brazil, WEG has expanded from its domestic manufacturing base into an international business with operations, production facilities and sales networks serving customers across the Americas, Europe, Asia, Africa and Oceania.

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