WEG (OTCMKTS:WEGZY) Shares Gap Up - Should You Buy?

Key Points

• WEG shares jumped at the open, rising from a prior close of $7.78 to $8.75 before trading at $8.5972 on volume of 30,976 shares.
• Analyst sentiment improved after Goldman Sachs upgraded WEG to “buy” and Zacks Research raised its rating to “hold.” The stock has a consensus rating of “Moderate Buy” from three analysts.
• WEG met quarterly EPS expectations at $0.08 and exceeded revenue estimates with $2.11 billion, while reporting a 15.39% net margin and 32.99% return on equity.

Weg S.A. (OTCMKTS:WEGZY - Get Free Report) gapped up prior to trading on Tuesday. The stock had previously closed at $7.78, but opened at $8.75. WEG shares last traded at $8.5972, with a volume of 30,976 shares traded.

Analysts Set New Price Targets

Several research analysts have weighed in on WEGZY shares. The Goldman Sachs Group upgraded shares of WEG from a "neutral" rating to a "buy" rating in a research note on Monday. Zacks Research upgraded shares of WEG to a "hold" rating in a research report on Tuesday, July 21st. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy".

WEG Stock Performance

The company has a quick ratio of 1.02, a current ratio of 1.59 and a debt-to-equity ratio of 0.12. The stock has a market cap of $35.76 billion and a P/E ratio of 29.38. The firm's 50-day moving average is $9.79 and its two-hundred day moving average is $9.38.

WEG (OTCMKTS:WEGZY - Get Free Report) last posted its earnings results on Wednesday, October 21st. The company reported $0.08 EPS for the quarter, hitting the consensus estimate of $0.08. WEG had a net margin of 15.39% and a return on equity of 32.99%. The company had revenue of $2.11 billion during the quarter, compared to the consensus estimate of $2.07 billion. As a group, research analysts expect that Weg S.A. will post 0.31 EPS for the current year.

WEG Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.