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 Communication Equipment. The stock has been active on the tape, currently trading at $33.56, up from yesterday’s close by 0.18%. 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 $8.35 Billion. That value represents a market adjusting for revenues that have been growing by 18.03 % 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 $177 Million over the past twelve months. Generally speaking, earnings are expected to hold steady in coming quarters. Analysts are forecasting earnings of $0.1 on a per share basis this quarter. Perhaps, that suggests something about why 2.66% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Zayo Group Holdings, Inc. recorded a 52-week high of $37.95. It is now trading 4.39% off that level. The stock is trading $35.57 its 50-day moving average by 2.01%. The stock carved out a 52-week low down at $29.73.

In recent action, Zayo Group Holdings, Inc. (ZAYO) has made a move of -9.37% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.61, 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 7.67% with $208.87 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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