TeraGo (TSE:TGO) Share Price Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• TeraGo shares rose 6.9% and traded at C$1.39, moving above the 200-day moving average of C$1.04.
• ATB Cormark raised its price target from C$0.80 to C$1.25, but maintained a “sector perform” rating; the consensus rating remains Hold.
• The company continues to face significant financial weakness, including a negative net margin of 65.17%, negative quarterly EPS of C$0.08, and a debt-to-equity ratio exceeding 2,100. Insiders nonetheless purchased 74,500 shares during the last quarter.

TeraGo Inc. (TSE:TGO - Get Free Report) shares crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of C$1.04 and traded as high as C$1.39. TeraGo shares last traded at C$1.39, with a volume of 2,089 shares.

Wall Street Analyst Weigh In

Separately, ATB Cormark Capital Markets raised their target price on TeraGo from C$0.80 to C$1.25 and gave the company a "sector perform" rating in a report on Thursday, June 18th. One analyst has rated the stock with a Hold rating, According to MarketBeat, TeraGo has a consensus rating of "Hold" and an average price target of C$1.25.

TeraGo Stock Up 6.9%

The stock's 50 day moving average is C$1.31 and its 200 day moving average is C$1.04. The company has a market capitalization of C$54.26 million, a PE ratio of -3.76, a PEG ratio of -1.00 and a beta of 0.43. The company has a debt-to-equity ratio of 2,100.38, a quick ratio of 0.60 and a current ratio of 1.26.

TeraGo (TSE:TGO - Get Free Report) last announced its quarterly earnings results on Tuesday, May 12th. The company reported C($0.08) earnings per share for the quarter. The company had revenue of C$6.17 million during the quarter. TeraGo had a negative net margin of 65.17% and a negative return on equity of 4,295.54%. On average, sell-side analysts anticipate that TeraGo Inc. will post -0.49 EPS for the current fiscal year.

Insiders Place Their Bets

In other TeraGo news, Director Martin Pinnes purchased 65,000 shares of the firm's stock in a transaction on Wednesday, May 20th. The shares were purchased at an average cost of C$1.36 per share, with a total value of C$88,400.00. Following the completion of the purchase, the director owned 299,574 shares of the company's stock, valued at C$407,420.64. The trade was a 27.71% increase in their position. Insiders bought a total of 74,500 shares of company stock worth $101,855 in the last quarter. Company insiders own 1.30% of the company's stock.

TeraGo Company Profile

TERAGO provides managed network and security services to businesses across Canada ensuring highly secure, reliable, and redundant connectivity including private 5G wireless networks, Fixed Wireless access, fiber, and cable wireline network connectivity. As Canada's biggest mmWave spectrum holders, the Company possesses spectrum licenses in the 24 GHz and 38 GHz spectrum bands, which it utilizes to provide secure, dedicated SLA guaranteed enterprise grade performance that is technology diverse from buried cables ensuring high availability connectivity services.

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