Cango Inc. [CANG] is -1.37% lower this YTD. Is it still time to buy?

Cango Inc. [NYSE: CANG] gained 2.19% or 0.03 points to close at $1.31 with a heavy trading volume of 136528 shares. The company report on November 30, 2022 that CANG: Results stabilized in the third quarter but challenges remain.

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By Brian Lantier, CFA.

It opened the trading session at $1.27, the shares rose to $1.33 and dropped to $1.27, the range by which the price of stock traded the whole day. The daily chart for CANG points out that the company has recorded -7.71% loss over the past six months. However, it is still -59.76% lower than its most recent low trading price.

If we look at the average trading volume of 301.86K shares, CANG reached to a volume of 136528 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 Cango Inc. [CANG]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CANG shares is $3.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CANG 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.

Morgan Stanley have made an estimate for Cango Inc. shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on November 18, 2019. While these analysts kept the previous recommendation, Goldman raised their target price to Neutral. The new note on the price target was released on September 04, 2018, representing the official price target for Cango Inc. stock.

The Average True Range (ATR) for Cango Inc. is set at 0.07, with the Price to Sales ratio for CANG stock in the period of the last 12 months amounting to 0.49. The Price to Book ratio for the last quarter was 0.22, with the Price to Cash per share for the same quarter was set at 3.62.

Trading performance analysis for CANG stock

Cango Inc. [CANG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.11. With this latest performance, CANG shares gained by 1.40% in over the last four-week period, additionally sinking by -7.71% over the last 6 months – not to mention a drop of -1.37% 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 CANG stock in for the last two-week period is set at 43.09, with the RSI for the last a single of trading hit 35.25, and the three-weeks RSI is set at 31.03 for Cango Inc. [CANG]. The present Moving Average for the last 50 days of trading for this stock 1.9304, while it was recorded at 1.3056 for the last single week of trading, and 2.4493 for the last 200 days.

Cango Inc. [CANG]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Cango Inc. [CANG] shares currently have an operating margin of +2.16 and a Gross Margin at +26.30. Cango Inc.’s Net Margin is presently recorded at -0.22.

Return on Equity for this stock declined to -0.11, with Return on Assets sitting at -0.07.

Cango Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.80 and a Current Ratio set at 2.80.

Cango Inc. [CANG]: An earnings per share (EPS) analysis

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 CANG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Cango Inc. go to 11.11%.

An analysis of insider ownership at Cango Inc. [CANG]

There are presently around $42 million, or 31.30% of CANG stock, in the hands of institutional investors. The top three institutional holders of CANG stocks are: WARBURG PINCUS LLC with ownership of 26,526,562, which is approximately -0.707% of the company’s market cap and around 8.65% of the total institutional ownership; PRIMAVERA CAPITAL MANAGEMENT LTD, holding 5,154,331 shares of the stock with an approximate value of $6.74 million in CANG stocks shares; and CETERA INVESTMENT ADVISERS, currently with $0.15 million in CANG stock with ownership of nearly 0.892% of the company’s market capitalization.

Positions in Cango Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 7 institutional holders increased their position in Cango Inc. [NYSE:CANG] by around 52,588 shares. Additionally, 24 investors decreased positions by around 696,202 shares, while 11 investors held positions by with 31,488,849 shares. The mentioned changes placed institutional holdings at 32,237,639 shares, according to the latest SEC report filing. CANG stock had 3 new institutional investments in for a total of 48,541 shares, while 14 institutional investors sold positions of 402,848 shares during the same period.


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