GEE Group Inc. [JOB] Stock trading around $0.65 per share: What’s Next?

GEE Group Inc. [AMEX: JOB] gained 1.91% or 0.02 points to close at $0.65 with a heavy trading volume of 22008074 shares. The company report on April 29, 2021 that GEE Group Announces Full Exercise and Closing of Over-Allotment Option in Connection with its Underwritten Public Offering.

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GEE Group Inc. (NYSE American:JOB) (“GEE” or the “Company”), a provider of professional staffing services and solutions, announced that the underwriter of its recent public offering exercised in full its 15% over-allotment option to purchase an additional 12,499,999 common shares (the “option shares”) of the Company at the public offering price of $0.60 per share. GEE has closed the transaction and received gross proceeds from the sale of the option shares of approximately $7.5 million, before deducting the underwriting discount and commissions and offering expenses. The Company previously closed, on April 18, 2021, an underwritten public offering of 83,333,333 shares of its common stock at the public offering price of $0.60 per share (the “firm shares”), for gross proceeds of approximately $50,000,000, before deducting the underwriting discount and commissions and offering expenses.

The Company, on April 21, 2021, used the net proceeds of the sale of the firm shares, together with its available cash, to payoff in full approximately $56,000,000 in aggregate outstanding indebtedness under its existing Revolving Credit, Term Loan and Security Agreement. GEE intends to use a portion of the net proceeds from the sale of the option shares to pay outstanding fees of approximately $5 million owed to its lender under such agreement in lieu of payment of the fees in GEE common shares. The remainder of the net proceeds will be used for general corporate purposes, including working capital and potential acquisitions.

It opened the trading session at $0.64, the shares rose to $0.68 and dropped to $0.63, the range by which the price of stock traded the whole day. The daily chart for JOB points out that the company has recorded -31.87% loss over the past six months. However, it is still -150.0% lower than its most recent low trading price.

If we look at the average trading volume of 3.72M shares, JOB reached to a volume of 22008074 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 GEE Group Inc. [JOB]:

Alliance Global Partners have made an estimate for GEE Group Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on July 02, 2020. While these analysts kept the previous recommendation, Maxim Group raised their target price from $10 to $8. The new note on the price target was released on October 10, 2017, representing the official price target for GEE Group Inc. stock. Previously, the target price had yet another drop from $11 to $9, while Maxim Group kept a Buy rating on JOB stock. On January 06, 2016, analysts decreased their price target for JOB shares from 14 to 12.

The Average True Range (ATR) for GEE Group Inc. is set at 0.10, with the Price to Sales ratio for JOB stock in the period of the last 12 months amounting to 0.59. The Price to Book ratio for the last quarter was 0.42, with the Price to Cash per share for the same quarter was set at 0.12.

Trading performance analysis for JOB stock

GEE Group Inc. [JOB] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.65. With this latest performance, JOB shares dropped by -49.05% in over the last four-week period, additionally sinking by -31.87% over the last 6 months – not to mention a rise of 124.38% 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 JOB stock in for the last two-week period is set at 29.78, with the RSI for the last a single of trading hit 28.73, and the three-weeks RSI is set at 33.23 for GEE Group Inc. [JOB]. The present Moving Average for the last 50 days of trading for this stock 1.3132, while it was recorded at 0.6434 for the last single week of trading, and 1.1443 for the last 200 days.

GEE Group Inc. [JOB]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and GEE Group Inc. [JOB] shares currently have an operating margin of -0.54 and a Gross Margin at +30.36. GEE Group Inc.’s Net Margin is presently recorded at -11.05.

Return on Total Capital for JOB is now -0.66, given the latest momentum, and Return on Invested Capital for the company is -14.09. Return on Equity for this stock declined to -44.70, with Return on Assets sitting at -10.86. When it comes to the capital structure of this company, GEE Group Inc. [JOB] has a Total Debt to Total Equity ratio set at 274.47. Additionally, JOB Total Debt to Total Capital is recorded at 73.30, with Total Debt to Total Assets ending up at 58.52. Long-Term Debt to Equity for the company is recorded at 260.38, with the Long-Term Debt to Total Capital now at 69.53.

Reflecting on the efficiency of the workforce at the company, GEE Group Inc. [JOB] managed to generate an average of -$55,609 per employee. Receivables Turnover for the company is 7.04 with a Total Asset Turnover recorded at a value of 0.98.GEE Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.50 and a Current Ratio set at 1.50.

GEE Group Inc. [JOB]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, GEE Group Inc. posted -0.34/share EPS, while the average EPS was predicted by analysts to be reported at -0.29/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -17.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for JOB.

An analysis of insider ownership at GEE Group Inc. [JOB]

There are presently around $2 million, or 2.30% of JOB stock, in the hands of institutional investors. The top three institutional holders of JOB stocks are: THRIVENT FINANCIAL FOR LUTHERANS with ownership of 1,392,831, which is approximately -31.535% of the company’s market cap and around 0.20% of the total institutional ownership; RENAISSANCE TECHNOLOGIES LLC, holding 392,336 shares of the stock with an approximate value of $0.25 million in JOB stocks shares; and BRIDGEWAY CAPITAL MANAGEMENT, LLC, currently with $87000.0 in JOB stock with ownership of nearly 72.809% of the company’s market capitalization.

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Positions in GEE Group Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 8 institutional holders increased their position in GEE Group Inc. [AMEX:JOB] by around 428,576 shares. Additionally, 6 investors decreased positions by around 996,949 shares, while 5 investors held positions by with 996,156 shares. The mentioned changes placed institutional holdings at 2,421,681 shares, according to the latest SEC report filing. JOB stock had 4 new institutional investments in for a total of 231,971 shares, while 2 institutional investors sold positions of 28,053 shares during the same period.

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