Recon Technology Ltd. [RCON] Revenue clocked in at $10.20 million, up 138.10% YTD: What’s Next?

Recon Technology Ltd. [NASDAQ: RCON] jumped around 0.65 points on Wednesday, while shares priced at $3.50 at the close of the session, up 22.81%. The company report on February 8, 2021 that Recon Announces Owning 51% of FGS.

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Recon Technology, Ltd. (NASDAQ: RCON), (“Recon” or the “Company”), announced that two of its subsidiaries entered into the fourth supplemental agreement to the investment agreement with Future Gas Station (Beijing) Technology, Ltd (“FGS”) and FGS’ founding shareholders on February 4, 2021 to acquire 8% equity ownership of FGS. The transaction has been closed. As a result, the Company owns 51% interest of FGS and will immediately begin to consolidate the financial results of FGS from January 2021, which will be reflected in the Company’s year-end financial results.

FGS is a service company focusing on providing new technical applications and data operations to gas stations. On December 15, 2017, the Company entered into a subscription agreement with FGS, pursuant to which the Company acquired an 8% equity interest in FGS. On August 21, 2018, the Company entered into an investment agreement and a supplemental agreement (collectively, the “Investment Agreement”) with FGS and the other shareholders of FGS. Pursuant to the Investment Agreement, the Company’s ownership interest in FGS increased from 8% to 43%, in exchange for the Company’s RMB 10 million investment in FGS and the issuance of 487,060 restricted shares of Recon (reflecting the effect of one-for-five reverse stock split) to the other shareholders of FGS. The restricted shares were subject to lock-up terms associated with certain performance goals. Pursuant to the second and the third supplemental agreements signed in 2019 and 2020, the parties extended the lock-up terms and the deadlines to meet the associated performance goals. Through the fourth supplemental agreement, the Company waived the requirement on FGS’ performances goal about the number of gas stations. Accordingly, the Company agreed to pay for the balance of the investment and cancelled the related lock-up terms on the restricted shares, in exchange of additional 8% equity ownership of FGS.

Recon Technology Ltd. stock is now 138.10% up from its year-to-date (YTD) trading value. RCON Stock saw the intraday high of $3.56 and lowest of $2.70 per share. The company’s 52-week high price is 5.55, which means current price is +145.32% above from all time high which was touched on 01/25/21.

Compared to the average trading volume of 1.98M shares, RCON reached a trading volume of 6624467 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Recon Technology Ltd. [RCON]?

Maxim Group have made an estimate for Recon Technology Ltd. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 12, 2018.

The Average True Range (ATR) for Recon Technology Ltd. is set at 0.37, with the Price to Sales ratio for RCON stock in the period of the last 12 months amounting to 2.36. The Price to Book ratio for the last quarter was 0.99, with the Price to Cash per share for the same quarter was set at 0.68.

How has RCON stock performed recently?

Recon Technology Ltd. [RCON] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 29.15. With this latest performance, RCON shares gained by 113.41% in over the last four-week period, additionally plugging by 207.02% over the last 6 months – not to mention a rise of 65.09% 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 RCON stock in for the last two-week period is set at 75.33, with the RSI for the last a single of trading hit 80.39, and the three-weeks RSI is set at 72.23 for Recon Technology Ltd. [RCON]. The present Moving Average for the last 50 days of trading for this stock 1.84, while it was recorded at 2.88 for the last single week of trading, and 1.56 for the last 200 days.

Recon Technology Ltd. [RCON]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Recon Technology Ltd. [RCON] shares currently have an operating margin of -30.68 and a Gross Margin at +29.81. Recon Technology Ltd.’s Net Margin is presently recorded at -29.27.

Return on Total Capital for RCON is now -14.32, given the latest momentum, and Return on Invested Capital for the company is -17.17. Return on Equity for this stock declined to -18.57, with Return on Assets sitting at -10.87. When it comes to the capital structure of this company, Recon Technology Ltd. [RCON] has a Total Debt to Total Equity ratio set at 27.92. Additionally, RCON Total Debt to Total Capital is recorded at 21.82, with Total Debt to Total Assets ending up at 15.80. Long-Term Debt to Equity for the company is recorded at 7.81, with the Long-Term Debt to Total Capital now at 6.10.

Reflecting on the efficiency of the workforce at the company, Recon Technology Ltd. [RCON] managed to generate an average of -$20,425 per employee. Receivables Turnover for the company is 0.70 with a Total Asset Turnover recorded at a value of 0.37.Recon Technology Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.00.

Insider trade positions for Recon Technology Ltd. [RCON]

There are presently around $0 million, or 1.70% of RCON stock, in the hands of institutional investors. The top three institutional holders of RCON stocks are: VIRTU FINANCIAL LLC with ownership of 35,445, which is approximately New of the company’s market cap and around 53.60% of the total institutional ownership; GEODE CAPITAL MANAGEMENT, LLC, holding 16,084 shares of the stock with an approximate value of $46000.0 in RCON stocks shares; and TOWER RESEARCH CAPITAL LLC (TRC), currently with $1000.0 in RCON stock with ownership of nearly New of the company’s market capitalization.

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Positions in Recon Technology Ltd. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 3 institutional holders increased their position in Recon Technology Ltd. [NASDAQ:RCON] by around 51,782 shares. Additionally, 2 investors decreased positions by around 70,228 shares, while 0 investors held positions by with 70,228 shares. The mentioned changes placed institutional holdings at 51,782 shares, according to the latest SEC report filing. RCON stock had 3 new institutional investments in for a total of 51,782 shares, while 2 institutional investors sold positions of 70,228 shares during the same period.

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