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Qutoutiao Inc. (NASDAQ:QTT) Undervalued? Fundamentals Hard To Beat?

Qutoutiao Inc. (NASDAQ:QTT) The stock’s Relative Strength Index (RSI) is 50.73, with weekly volatility at 6.45% and ATR at 0.15. The QTT stock’s 52-week price range has touched low of $1.53 and a $5.64 high. Its shares traded lower over the last trading session, losing 0.00% on 05/28/21. The shares fell to a low of $2.12 before closing at $2.16. Intraday shares traded counted 1.36 million, which was 57.19% higher than its 30-day average trading volume of 3.17M. QTT’s previous close was $2.16 while the outstanding shares total 297.10M.

Investors have identified the Internet Content & Information company Qutoutiao Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $654.50 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Qutoutiao Inc. (QTT) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For QTT, the company has in raw cash 91.16 million on their books with 12.73 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 378.9 million total, with 289.04 million as their total liabilities.

QTT were able to record -133.33 million as free cash flow during the 09/08/2021 quarter of the year, this saw their quarterly net cash flow reduce by 33.58 million. In cash movements, the company had a total of -132.38 million as operating cash flow.

Potential earnings growth for Qutoutiao Inc. (QTT)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/08/2021 quarter of the year, Qutoutiao Inc. recorded a total of 240.96 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 4.35% coming in sequential stages and their sales for the 09/08/2021 quarter increasing by 32.19%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 80.36 million trying to sell their products during the last quarter, with the result yielding a gross income of 160.59 million. This allows shareholders to hold on to 297.10M with the recently reported earning now reading -0.08 cents per share. This is a figure that compared to analyst’s prediction for their 09/08/2021 (-0.04 cents a share).

Is the stock of QTT attractive?

In the last 6 months, insiders have changed their ownership in shares of company stock by 10.34%.

2 out of 2 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Qutoutiao Inc.. 0 analysts has assigned a Sell rating on the QTT stock. The 12-month mean consensus price target for the company’s shares has been set at $2.02.

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