Skillsoft (NYSE:SKIL) Shares Down 5.5% - Should You Sell?

Key Points

• Shares fell 5.5% to $6.97 on Tuesday, with only 114,872 shares traded (a 59% decline from average volume), after a prior close of $7.38.
• Analyst sentiment is weak — MarketBeat shows a consensus rating of "Reduce", with Weiss Ratings reiterating a "sell (e+)" and Zacks downgrading the stock to a "hold."
• Fundamentals show risks: a small market cap of $61.41M, a negative P/E, very high debt-to-equity (142.97) and a low current/quick ratio (0.89), though Q1 revenue roughly matched estimates and EPS improved year-over-year while missing consensus by $0.01.

Skillsoft Corp. (NYSE:SKIL - Get Free Report)'s stock price dropped 5.5% on Tuesday . The company traded as low as $6.92 and last traded at $6.9710. Approximately 114,872 shares traded hands during trading, a decline of 59% from the average daily volume of 279,230 shares. The stock had previously closed at $7.38.

Analysts Set New Price Targets

SKIL has been the subject of a number of recent analyst reports. Weiss Ratings reiterated a "sell (e+)" rating on shares of Skillsoft in a research report on Friday, March 27th. Zacks Research downgraded Skillsoft from a "strong-buy" rating to a "hold" rating in a research report on Monday, February 9th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce".

Skillsoft Trading Down 5.5%

The company has a market cap of $61.41 million, a price-to-earnings ratio of -0.43, a PEG ratio of 0.22 and a beta of 1.74. The firm has a 50 day moving average price of $4.76 and a two-hundred day moving average price of $8.02. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 142.97.

Skillsoft (NYSE:SKIL - Get Free Report) last issued its quarterly earnings results on Tuesday, April 7th. The company reported $1.26 earnings per share for the quarter, missing the consensus estimate of $1.27 by ($0.01). Skillsoft had a negative net margin of 27.27% and a positive return on equity of 112.12%. The company had revenue of $130.65 million during the quarter, compared to analyst estimates of $130.15 million. During the same period in the previous year, the company posted ($3.75) EPS. As a group, equities analysts forecast that Skillsoft Corp. will post 3.38 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in SKIL. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of Skillsoft in the second quarter valued at approximately $39,000. Bank of America Corp DE lifted its holdings in shares of Skillsoft by 330.0% in the fourth quarter. Bank of America Corp DE now owns 1,750 shares of the company's stock valued at $42,000 after purchasing an additional 1,343 shares in the last quarter. Public Employees Retirement System of Ohio lifted its holdings in shares of Skillsoft by 330.2% in the fourth quarter. Public Employees Retirement System of Ohio now owns 6,130 shares of the company's stock valued at $57,000 after purchasing an additional 4,705 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Skillsoft by 374.2% in the fourth quarter. NewEdge Advisors LLC now owns 7,331 shares of the company's stock valued at $68,000 after purchasing an additional 5,785 shares in the last quarter. Finally, Wells Fargo & Company MN lifted its holdings in shares of Skillsoft by 116.2% in the fourth quarter. Wells Fargo & Company MN now owns 7,393 shares of the company's stock valued at $69,000 after purchasing an additional 3,974 shares in the last quarter. Institutional investors own 87.00% of the company's stock.

Skillsoft Company Profile

Skillsoft NYSE: SKIL is a leading provider of corporate digital learning solutions designed to help organizations develop skills and drive performance. The company offers a range of cloud-based learning platforms and content libraries that cover technical training, leadership development, compliance, and productivity applications. Skillsoft's flagship platform, Percipio, delivers micro-learning modules, video tutorials, books and audiobooks, hands-on labs and simulations, and practice assessments within a unified interface that can be accessed on desktop or mobile devices.

Skillsoft's content spans IT certification preparation, software development, cloud computing, cybersecurity, project management, and a variety of professional skills such as communication, management and sales.

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