Loop Capital lifts BlueCity Holdings Limited [BLCT] price estimate. Who else is bullish?



BlueCity Holdings Limited [NASDAQ: BLCT] jumped around 0.27 points on Monday, while shares priced at $1.80 at the close of the session, up 17.65%. The company report on January 3, 2022 that BlueCity Holdings Limited Announces Receipt of a Preliminary Non-Binding Proposal to Acquire the Company.

BlueCity Holdings Limited ( “BlueCity” or the “Company”) (NASDAQ: BLCT), a leading online LGBTQ platform, today announced that its board of directors (the “Board”) has received a preliminary non-binding proposal letter (the “Proposal Letter”), dated January 2, 2022, from Mr. Baoli Ma, founder, chairman of the Board and chief executive officer of the Company (the “Founder”), and Spriver Tech Limited (together with the Founder, the “Buyer Group”), to acquire all of the outstanding ordinary shares of the Company (the “Ordinary Shares”), including the Class A ordinary shares represented by the American Depositary Shares of the Company (the “ADSs”, each two representing one Class A ordinary share) that are not already beneficially owned by the Buyer Group for a proposed purchase price of US$3.70 per Ordinary Share or US$1.85 per ADS in cash (the “Proposed Transaction”). A copy of the Proposal Letter is attached hereto as Exhibit A.

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According to the Proposal Letter, the Buyer Group intends to fund the consideration payable in the Transaction primarily with equity capital from the Buyer Group in the form of rollover capital and cash contributions.

BlueCity Holdings Limited stock is now 17.65% up from its year-to-date (YTD) trading value. BLCT Stock saw the intraday high of $2.02 and lowest of $1.72 per share. The company’s 52-week high price is 20.46, which means current price is +4.65% above from all time high which was touched on 01/03/22.

Compared to the average trading volume of 129.76K shares, BLCT reached a trading volume of 20358326 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about BlueCity Holdings Limited [BLCT]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BLCT shares is $2.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BLCT stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Loop Capital have made an estimate for BlueCity Holdings Limited shares, keeping their opinion on the stock as Hold, with their previous recommendation back on June 22, 2021. While these analysts kept the previous recommendation, Oppenheimer raised their target price to Outperform. The new note on the price target was released on December 11, 2020, representing the official price target for BlueCity Holdings Limited stock.

The Average True Range (ATR) for BlueCity Holdings Limited is set at 0.19, with the Price to Sales ratio for BLCT stock in the period of the last 12 months amounting to 0.40. The Price to Book ratio for the last quarter was 0.72, with the Price to Cash per share for the same quarter was set at 1.51.

How has BLCT stock performed recently?

BlueCity Holdings Limited [BLCT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 28.57. With this latest performance, BLCT shares gained by 11.11% in over the last four-week period, additionally sinking by -74.58% over the last 6 months – not to mention a drop of -82.39% 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 BLCT stock in for the last two-week period is set at 53.70, with the RSI for the last a single of trading hit 66.60, and the three-weeks RSI is set at 46.02 for BlueCity Holdings Limited [BLCT]. The present Moving Average for the last 50 days of trading for this stock 2.1518, while it was recorded at 1.4980 for the last single week of trading, and 5.0925 for the last 200 days.

BlueCity Holdings Limited [BLCT]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and BlueCity Holdings Limited [BLCT] shares currently have an operating margin of -22.75 and a Gross Margin at +29.85. BlueCity Holdings Limited’s Net Margin is presently recorded at +2.16.

Return on Total Capital for BLCT is now -41.21, given the latest momentum, and Return on Invested Capital for the company is 3.90. Return on Equity for this stock inclined to 3.90, with Return on Assets sitting at 3.05.

Reflecting on the efficiency of the workforce at the company, BlueCity Holdings Limited [BLCT] managed to generate an average of $4,265 per employee. Receivables Turnover for the company is 26.35 with a Total Asset Turnover recorded at a value of 1.41.BlueCity Holdings Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.60 and a Current Ratio set at 2.60.

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Insider trade positions for BlueCity Holdings Limited [BLCT]

There are presently around $6 million, or 19.90% of BLCT stock, in the hands of institutional investors. The top three institutional holders of BLCT stocks are: FIL LTD with ownership of 1,617,057, which is approximately 0% of the company’s market cap and around 8.02% of the total institutional ownership; UG INVESTMENT ADVISERS LTD., holding 1,304,512 shares of the stock with an approximate value of $2.0 million in BLCT stocks shares; and MORGAN STANLEY, currently with $0.89 million in BLCT stock with ownership of nearly -19.634% of the company’s market capitalization.

Positions in BlueCity Holdings Limited stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 10 institutional holders increased their position in BlueCity Holdings Limited [NASDAQ:BLCT] by around 142,011 shares. Additionally, 11 investors decreased positions by around 545,944 shares, while 2 investors held positions by with 3,057,752 shares. The mentioned changes placed institutional holdings at 3,745,707 shares, according to the latest SEC report filing. BLCT stock had 7 new institutional investments in for a total of 129,569 shares, while 6 institutional investors sold positions of 252,115 shares during the same period.