Is Now the Time to Invest in Colony Capital Inc. (NYSE:CLNY)?


Colony Capital Inc. (CLNY) shares are trading at lower $2.60 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $3.25.

To add more color to this target, the company’s high over the last year is $6.14 and the low is $1.33. Over the last 52 weeks, CLNY is down -53.65% while the S&P 500 is up 13.33%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CLNY reported a profit of $-2.16 billion. Colony Capital Inc. also saw revenues decrease to $372.37 million. In addition, CLNY has free cash flow of -$89.66 million as of 06-2020. The company’s EBITDA came in at -$1.5 billion which compares well with its peers.

CLNY Return on Equity (ROE) is -85.60%, and its Return on Assets is -15.50%. All told, it is clear that, CLNY needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CLNY has a short ratio of 6.55 and outstanding shares of 471.25M.

Company Outlook

CLNY has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.3 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -7.25. Investors should also keep an eye on sector updates as CLNY has historically followed its peers on positive news.

All told, Colony Capital Inc. CLNY has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CLNY represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Colony Capital Inc. CLNY is now commanding a market cap of 1.25B and a float of 470.06M. CLNY is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CLNY stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CLNY, either long or short, and we have not been compensated for this article.