Shares of [finviz_code ticker=ZAIS item=2 value=”ZAIS Group Holdings, Inc.”] (NASDAQ:[finviz_code ticker=ZAIS item=1 value=”ZAIS”]) are currently up by more than [finviz_code ticker=ZAIS item=60 value=”84.58%”] from the open today and are trading at $[finviz_code ticker=ZAIS item=65 value=”4.43″]. More than [finviz_code ticker=ZAIS item=67 value=”23,144,514″] shares have exchanged hands compared to an average trading volume of [finviz_code ticker=ZAIS item=63 value=”111.36K”]. At the current pps, the market cap stands at $[finviz_code ticker=ZAIS item=6 value=”27.61M”]. The stock prices of [finviz_code ticker=ZAIS item=2 value=”ZAIS Group Holdings, Inc.”] (NASDAQ:[finviz_code ticker=ZAIS item=1 value=”ZAIS”]) are currently trading at [finviz_code ticker=ZAIS item=57 value=”-49.20%”] below its 52 week high and [finviz_code ticker=ZAIS item=58 value=”243.41%”] above its 52 week low.
[finviz_code ticker=ZAIS item=2 value=”ZAIS Group Holdings, Inc.”] (NASDAQ:[finviz_code ticker=ZAIS item=1 value=”ZAIS”]) has been in the news for all the right reasons. Recently, [finviz_code ticker=ZAIS item=2 value=”ZAIS Group Holdings, Inc.”] (NASDAQ:[finviz_code ticker=ZAIS item=1 value=”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.
[finviz_code ticker=ZAIS item=2 value=”ZAIS Group Holdings, Inc.”] (NASDAQ:[finviz_code ticker=ZAIS item=1 value=”ZAIS”]) is all set to announce its earnings on [finviz_code ticker=ZAIS item=68 value=”Nov 04/b”]. As per Zack’s analyst ratings, [finviz_code ticker=ZAIS item=2 value=”ZAIS Group Holdings, Inc.”] (NASDAQ:[finviz_code ticker=ZAIS item=1 value=”ZAIS”]) currently has an average brokerage rating of [quandl_code ticker=ZAIS item=ZAR|RATING_MEAN value=””]. 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:[finviz_code ticker=ZAIS item=1 value=”ZAIS”]) is $[quandl_code ticker=ZAIS item=ZAR|TP_MEAN_EST value=””] with a high of $[quandl_code ticker=ZAIS item=ZAR|TP_HIGH_EST value=””] and a low of $[quandl_code ticker=ZAIS item=ZAR|TP_LOW_EST value=””].
Let’s take a look at the technical analysis.
[intr_chart ticker=ZAIS src=”http://www.financialstrend.com/wp-content/uploads/2017/02/25610-ZAIS11.png”]
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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). [ema_code ticker=ZAIS color=blue value=2.96|1.82].
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). [rsi_code ticker=ZAIS color=blue value=92.36]
