Shares of ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) are currently up by more than 84.58% from the open today and are trading at $4.43. More than 23,144,514 shares have exchanged hands compared to an average trading volume of 111.36K. At the current pps, the market cap stands at $27.61M. The stock prices of ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) are currently trading at -49.20% below its 52 week high and 243.41% above its 52 week low.
ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) has been in the news for all the right reasons. Recently, ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) reported financial results for the three and nine months ended September 30, 2016. ZAIS conducts substantially all of its operations through ZAIS Group, LLC (“ZAIS Group”). ZAIS Group provides investment advisory and asset management services to private funds, separately managed accounts structured vehicles and, for the three and nine months ended September 30, 2016, to ZAIS Financial Corp., a publicly traded real estate investment trust (collectively, the “ZAIS Managed Entities”). References to the “Company” herein refer to ZAIS, together with its consolidated subsidiaries and affiliates. ZAIS today also announced that Nisha Motani has been named as its Acting Chief Financial Officer, effective as of December 1, 2016, replacing Donna Blank, who has tendered her resignation as Chief Financial Officer effective on November 30, 2016.
CONSOLIDATED GAAP RESULTS
The Company recorded GAAP net income for the three months ended September 30, 2016 of $1.6 million compared with a GAAP net loss of $(1.6) million for the three months ended September 30, 2015. The increase in net income of $3.2 million was driven primarily by a net increase of $4.1 million in net income from Consolidated Funds due to a Consolidated Fund, ZAIS Zephyr A-6, LP (“Zephyr A-6”), which launched in the fourth quarter of 2015 plus a decrease of $1.3 million of expenses primarily in general, administrative and other expenses offset by a decrease of $0.8 million in incentive and management fee income and a $1.5 million decrease in deferred tax assets due to the establishment of a full valuation allowance at December 31, 2015. The Company recorded a pre-tax GAAP net income for the three months ended September 30, 2016 of $1.6 million compared with a pre-tax GAAP net loss for the three months ended September 30, 2015 of $(3.1) million.
The consolidated financial statements include non-controlling interests of the members of ZAIS Group Parent, LLC (“ZGP”) other than ZAIS (the “ZGP Founder Members”) which represent Class A Units of ZGP held by the ZGP Founder Members. ZGP, a majority-owned consolidated subsidiary of ZAIS, is the sole member, and owns all of the equity, of ZAIS Group.
CONSOLIDATED NON-GAAP RESULTS
The Company recorded a net loss (excluding Consolidated Funds of ZAIS Group) for the three months ended September 30, 2016 of $(0.3) million, or $(0.02) per diluted weighted average Class A common share outstanding, compared with a net loss (excluding Consolidated Funds of ZAIS Group) of $(1.6) million, or $(0.06) per diluted weighted average Class A common share outstanding for the three months ended September 30, 2015. The Company’s earnings per share for all periods prior to the business combination ZAIS completed in March 2015 (the “Business Combination”) were calculated on the basis of 7,000,000 shares of common stock with reference to the equity interests of the ZGP Founder Members.
The decrease in the Company’s net loss (excluding Consolidated Funds of ZAIS Group) for the three months ended September 30, 2016 was due to a decrease in expenses of $1.4 million primarily related to a decrease in professional fees and a $2.0 million increase in net gain (loss) on investments related to ZAIS’s ownership in Zephyr A-6 which was launched in the fourth quarter of 2015 offset by a $0.6 million decrease in management and incentive fees and a $1.5 million decrease in deferred tax assets due to the establishment of a full valuation allowance at December 31, 2015.
For the three months ended September 30, 2016, the Company reported Adjusted EBITDA of $1.1 million, compared with negative Adjusted EBITDA of $(1.1) million for the three months ended September 30, 2015.
ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) is all set to announce its earnings on Nov 04/b. As per Zack’s analyst ratings, ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) currently has an average brokerage rating of . On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:ZAIS) is $ with a high of $ and a low of $.
Let’s take a look at the technical analysis.The Barchart Technical Opinion rating is a 88% Buy and ranks in the Top 1% of all short term signal directions. Longer term, the trend strength is in the Top 1%. Long term indicators mostly agree with the trend.
The The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The long term and short term EMA's of 2.96 and 1.82 are lower than the current trading price suggesting a bullish pattern in both short term as well as long term. .
The relative strength index (RSI) is a momentum osciallator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 92.36 suggesting a bullish price action.
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