ENGlobal Corp (NASDAQ: ENG) stock has continued to run at a low level in the past two months. Although the stock broke through the $8 in February this year, it is only $2.91 per share now. So, is this stock worth buying now?
The company's revenue and net income were all down in the first quarter of 2021 due to the negative economic effects upon the energy industry caused by the COVID-19 pandemic. The company provides the complete project solutions for renewable and traditional energy throughout the United States and internationally.
Although the company said that it had the cash of $14 million at end of March this year, it still offered 7.1 million shares of its common stock to institutional investors last month, which caused it to lose 21% in its stock price in that day.
Can the company achieve improving quarterly results in the next quarter? It is not yet known. Currently, the investors‘s enthusiasm for this stock does not seem to be high, perhaps it is not a good time to buy the stock now.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.