The Case for and Against Zayo Group Holdings, Inc. (ZAYO)

Zayo Group Holdings, Inc. (ZAYO) is an interesting player in the Technology space, with a focus on Networking & Communication Devices. The stock has been active on the tape, currently trading at $36.80, down from yesterday’s close by -0.54%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Zayo Group Holdings, Inc. (ZAYO) currently trades with a market capitalization of $9.12 Billion. That value represents a market adjusting for revenues that have been growing by 27.45 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $125.2 Million over the past twelve months. Generally speaking, earnings are expected to hold steady in coming quarters. Analysts are forecasting earnings of $0.12 on a per share basis this quarter. Perhaps, that suggests something about why 2.85% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Zayo Group Holdings, Inc. recorded a 52-week high of $37.26. It is now trading 0.46% off that level. The stock is trading $35.53 its 50-day moving average by -1.27%. The stock carved out a 52-week low down at $29.30.

In recent action, Zayo Group Holdings, Inc. (ZAYO) has made a move of +4.13% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 6.59% with $198.33 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of ZAYO.

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