Lianluo Smart Limited [NASDAQ: LLIT] gained 39.50% or 1.28 points to close at $4.53 with a heavy trading volume of 38460308 shares. The company report on October 25, 2020 that Lianluo Smart Limited and Newegg Inc. Announce Entering into Merger Agreement.
Lianluo Smart Limited (“LLIT” or the “Company”) (NASDAQ: LLIT), and privately-held Newegg Inc. (“Newegg”) today jointly announced that they have entered into an Agreement and Plan of Merger (the “Merger Agreement”), whereby the stockholders of Newegg will become the majority owners of LLIT, as a result of the merger of Lightning Delaware Sub, Inc. (the “Merger Sub”), LLIT’s wholly owned subsidiary, with and into Newegg. In addition, LLIT will sell its equity holdings in Lianluo Connection Medical Wearable Device Technology (Beijing) Co., Ltd. (“Lianluo Connection”) to Beijing Fenjin Times Technology Development Co., Ltd (“Fenjin Times”) pursuant to an equity transfer agreement (“Disposition Agreement”). The disposition will become effective immediately following completion of the Merger.
Concurrent with the closing of the merger and disposition described above (collectively, the “Restructure”), the Company will conduct a public offering of its common shares with expected gross proceeds of approximately $30 million (the “Financing”). The consummation of the Restructure and the Financing are contingent on the closing of each other transaction and certain customary approvals and conditions. LLIT will seek its shareholders’ approval of the Restructure as well as an amendment to its memorandum and articles of association to eliminate its dual class share structure, to effectuate a reverse share split if needed to meet Nasdaq’s initial listing requirements, to increase the number of its authorized shares and to effectuate a name change.
It opened the trading session at $5.735, the shares rose to $5.88 and dropped to $4.01, the range by which the price of stock traded the whole day. The daily chart for LLIT points out that the company has recorded 36.41% gains over the past six months. However, it is still -76.95% lower than its most recent low trading price.
If we look at the average trading volume of 85.75K shares, LLIT reached to a volume of 38460308 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Lianluo Smart Limited [LLIT]:
The Average True Range (ATR) for Lianluo Smart Limited is set at 0.59, with the Price to Sales ratio for LLIT stock in the period of the last 12 months amounting to 376.56.
Trading performance analysis for LLIT stock
Lianluo Smart Limited [LLIT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 23.10. With this latest performance, LLIT shares gained by 52.63% in over the last four-week period, additionally plugging by 36.41% over the last 6 months – not to mention a drop of -15.50% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LLIT stock in for the last two-week period is set at 65.38, with the RSI for the last a single of trading hit 67.53, and the three-weeks RSI is set at 62.06 for Lianluo Smart Limited [LLIT]. The present Moving Average for the last 50 days of trading for this stock 3.35, while it was recorded at 3.95 for the last single week of trading, and 4.82 for the last 200 days.
Lianluo Smart Limited [LLIT]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Lianluo Smart Limited [LLIT] shares currently have an operating margin of -991.60 and a Gross Margin at -130.16. Lianluo Smart Limited’s Net Margin is presently recorded at -1160.75.
Return on Total Capital for LLIT is now -250.47, given the latest momentum, and Return on Invested Capital for the company is -487.02. Return on Equity for this stock declined to -487.02, with Return on Assets sitting at -110.82.
Reflecting on the efficiency of the workforce at the company, Lianluo Smart Limited [LLIT] managed to generate an average of -$158,964 per employee. Receivables Turnover for the company is 0.89 with a Total Asset Turnover recorded at a value of 0.10.Lianluo Smart Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.20 and a Current Ratio set at 0.50.
An analysis of insider ownership at Lianluo Smart Limited [LLIT]
There are presently around $0 million, or 1.40% of LLIT stock, in the hands of institutional investors. The top three institutional holders of LLIT stocks are: HRT FINANCIAL LLC with ownership of 9,614, which is approximately 209.132% of the company’s market cap and around 52.90% of the total institutional ownership; BARCLAYS PLC, holding 7,400 shares of the stock with an approximate value of $34000.0 in LLIT stocks shares; and UBS GROUP AG, currently with $27000.0 in LLIT stock with ownership of nearly -33.443% of the company’s market capitalization.
Positions in Lianluo Smart Limited stocks held by institutional investors increased at the end of September and at the time of the September reporting period, where 5 institutional holders increased their position in Lianluo Smart Limited [NASDAQ:LLIT] by around 13,996 shares. Additionally, 2 investors decreased positions by around 11,749 shares, while 1 investors held positions by with 6,044 shares. The mentioned changes placed institutional holdings at 31,789 shares, according to the latest SEC report filing. LLIT stock had 2 new institutional investments in for a total of 3,747 shares, while 1 institutional investors sold positions of 8,806 shares during the same period.