MingZhu Logistics Holdings Limited [NASDAQ: YGMZ] price surged by 20.45 percent to reach at $0.36. The company report on December 29, 2021 that MingZhu Logistics Enters into Share Purchase Agreement to Acquire CheYi Network.
MingZhu Logistics Holdings Ltd. (NASDAQ: YGMZ) (the “MingZhu” or “Company”), a leading trucking service provider, today announced that it entered into a Share Purchase Agreement (the “SPA”) on December 29, 2021 to acquire 100% of the equity interest of Cheyi (BVI) Limited (the “Cheyi BVI”) which operates its business through its subsidiary Zhejiang CheYi Network Technology Co., Ltd. (the “CheYi Network”), an integrated online car-hailing and driver management services company. Pursuant to the agreement, the total consideration for the acquisition of 100% equity ownership of Cheyi BVI is an aggregate of U.S. $29,466,032, consisting of the issuance by the Company to the shareholders of Cheyi BVI an aggregate of 3,189,000 fully paid Company’s ordinary shares (being U.S. $12,756,000 of $4 per share) and payment of $2,000,000 at closing, and Year-2021 earnout payment of U.S. $8,826,019 and Year-2022 earnout payment of U.S. $5,884,013 if the Cheyi BVI’s audited net income for its fiscal year 2021 and 2022 is no less than U.S. $3,000,000 respectively. The two earnout payments are due 13 months upon the delivery of Cheyi BVI’s audited financial statements. The parties plan to close the transaction by December 31, 2021. The acquisition is expected to offer MingZhu’s customers additional platform enhancements, and directly fits with MingZhu’s acquisition strategy, which includes adding financially accretive, best-of-breed companies and products.
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CheYi Network was established in December 2015 as a comprehensive automobile service platform, providing a full range of services to the automotive industry. CheYi Network has built an integrated business platform with more than 6,000 vehicles and drivers for ride hailing services under management. Its vehicles and drivers provide services to major mobility technology platforms, such as SAIC Mobility and T3 Mobility.
A sum of 20278854 shares traded at recent session while its average daily volume was at 174.51K shares. MingZhu Logistics Holdings Limited shares reached a high of $2.18 and dropped to a low of $1.78 until finishing in the latest session at $2.12.
Guru’s Opinion on MingZhu Logistics Holdings Limited [YGMZ]:
The Average True Range (ATR) for MingZhu Logistics Holdings Limited is set at 0.23, with the Price to Sales ratio for YGMZ stock in the period of the last 12 months amounting to 1.82. The Price to Book ratio for the last quarter was 1.02, with the Price to Cash per share for the same quarter was set at 0.13.
YGMZ Stock Performance Analysis:
MingZhu Logistics Holdings Limited [YGMZ] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 15.85. With this latest performance, YGMZ shares dropped by -5.78% in over the last four-week period, additionally sinking by -55.37% over the last 6 months – not to mention a drop of -79.96% 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 YGMZ stock in for the last two-week period is set at 51.42, with the RSI for the last a single of trading hit 57.82, and the three-weeks RSI is set at 47.54 for MingZhu Logistics Holdings Limited [YGMZ]. The present Moving Average for the last 50 days of trading for this stock 2.3700, while it was recorded at 1.9200 for the last single week of trading, and 3.7100 for the last 200 days.
Insight into MingZhu Logistics Holdings Limited Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and MingZhu Logistics Holdings Limited [YGMZ] shares currently have an operating margin of +7.51 and a Gross Margin at +12.49. MingZhu Logistics Holdings Limited’s Net Margin is presently recorded at +4.16.
Return on Total Capital for YGMZ is now 6.24, given the latest momentum, and Return on Invested Capital for the company is 4.65. Return on Equity for this stock inclined to 4.74, with Return on Assets sitting at 2.79. When it comes to the capital structure of this company, MingZhu Logistics Holdings Limited [YGMZ] has a Total Debt to Total Equity ratio set at 31.66. Additionally, YGMZ Total Debt to Total Capital is recorded at 24.04, with Total Debt to Total Assets ending up at 20.13. Long-Term Debt to Equity for the company is recorded at 0.74, with the Long-Term Debt to Total Capital now at 0.56.
Reflecting on the efficiency of the workforce at the company, MingZhu Logistics Holdings Limited [YGMZ] managed to generate an average of $5,322 per employee. Receivables Turnover for the company is 1.22 with a Total Asset Turnover recorded at a value of 0.67.MingZhu Logistics Holdings Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.40 and a Current Ratio set at 2.40.
MingZhu Logistics Holdings Limited [YGMZ] Insider Position Details
There are presently around $0 million, or 1.10% of YGMZ stock, in the hands of institutional investors. The top three institutional holders of YGMZ stocks are: RENAISSANCE TECHNOLOGIES LLC with ownership of 143,800, which is approximately New of the company’s market cap and around 55.88% of the total institutional ownership; CITADEL ADVISORS LLC, holding 18,238 shares of the stock with an approximate value of $32000.0 in YGMZ stocks shares; and UBS GROUP AG, currently with $12000.0 in YGMZ stock with ownership of nearly 73.036% of the company’s market capitalization.
4 institutional holders increased their position in MingZhu Logistics Holdings Limited [NASDAQ:YGMZ] by around 165,212 shares. Additionally, 1 investors decreased positions by around 5,300 shares, while 0 investors held positions by with 469 shares. The mentioned changes placed institutional holdings at 170,043 shares, according to the latest SEC report filing. YGMZ stock had 3 new institutional investments in for a total of 162,414 shares, while 0 institutional investors sold positions of 0 shares during the same period.