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OchZiff Capital Management Group LLC (SCU) Soars 6.4%: Is Further Upside Left in the Stock?

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OchZiff Capital Management Group LLC (SCU - Free Report) shares soared 6.4% in the last trading session to close at $24.53. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.2% gain over the past four weeks.

Investors’ bullish sentiments for OchZiff Capital stemmed from better-than-expected first quarter 2021 results. The company’s adjusted distributable earnings of 62 cents per share handily surpassed the Zacks Consensus Estimate of 25 cents. Also, this reflected a substantial improvement from 6 cents earned in the prior-year quarter.

Other reason for investors’ optimistic stance was OchZiff Capital’s flagship hedge fund – multi-strategy vehicle – has been finally beginning to turn around. The vehicle recorded its first quarter of net inflows since the second quarter of 2014. The fund and its associated portfolios witnessed a net inflow of $78 million during the quarter, bringing the total assets under management in those products to $10.9 billion as of Mar 31, 2021.

 

Price and Consensus

Price Consensus Chart for SCU

This company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +316.7%. Revenues are expected to be $81.34 million, up 12.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For OchZiff Capital Management Group LLC, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SCU going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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