Resonac (OTCMKTS:SHWDY) Shares Gap Up - Time to Buy?

Key Points

• Shares of Resonac gapped up pre-market from $70.75 to $84.40 (about +7.8%) on light volume (105 shares) after Goldman Sachs upgraded the stock to a Strong Buy.
• The company has a market cap of $15.61 billion and a high valuation (P/E 79.62) despite modest profitability—quarterly EPS $0.83 on $2.34 billion revenue, net margin 2.11% and ROE 4.11%—which suggests valuation may be stretched relative to earnings.
• Resonac (formerly Showa Denko) is a diversified chemical manufacturer with significant exposure to electronics and semiconductor materials, supplying silicon wafers, rare-earth magnetic alloys and high-purity gases and chemicals for chip fabrication.

Shares of Resonac Holdings Corporation Unsponsored ADR (OTCMKTS:SHWDY - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $70.75, but opened at $84.40. Resonac shares last traded at $84.40, with a volume of 105 shares changing hands.

Analyst Ratings Changes

Separately, The Goldman Sachs Group raised shares of Resonac to a "strong-buy" rating in a report on Monday, January 12th. Two equities research analysts have rated the stock with a Strong Buy rating, According to data from MarketBeat, Resonac presently has an average rating of "Strong Buy".

Resonac Stock Up 7.8%

The firm's fifty day moving average is $70.66 and its 200-day moving average is $52.15. The company has a market capitalization of $15.61 billion, a P/E ratio of 79.62 and a beta of 0.35. The company has a debt-to-equity ratio of 1.07, a quick ratio of 1.37 and a current ratio of 1.80.

Resonac (OTCMKTS:SHWDY - Get Free Report) last posted its earnings results on Friday, February 13th. The company reported $0.83 earnings per share for the quarter. Resonac had a net margin of 2.11% and a return on equity of 4.11%. The firm had revenue of $2.34 billion for the quarter.

Resonac Company Profile

Resonac Corporation OTCMKTS: SHWDY, formerly known as Showa Denko K.K., is a diversified chemical manufacturer based in Tokyo, Japan. The company produces a broad range of industrial chemicals and performance materials that serve sectors including automotive, electronics, energy storage and environmental applications. Its product portfolio encompasses basic petrochemicals, polyolefins, functional chemicals, ceramic powders, aluminum specialty products and graphite electrodes for steel production.

Resonac maintains a strong presence in the electronics materials market through its supply of semiconductor‐grade silicon, silicon wafers, rare‐earth magnetic alloys and high‐purity gases and chemicals used in semiconductor fabrication.

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