SOS Stock Price Prediction – Should You Buy SOS?

SOS Stock Price Prediction
SOS Stock Price Prediction

The SOS stock price prediction has been on a steady decline for the past few years, and many investors are wondering if it is time to bail on the company. Here, we take a look at some of the reasons behind the stock’s decline and make a prediction for where it will go in the future. Spoiler alert: we don’t think things are looking good for SOS. Stay tuned to find out why! 

So without further ado, let us get started on SOS stock price prediction.

According to Analysts, the stock prices of SOS Limited are estimated to show bullish tendencies in the long run. However, in the short- term, analysts have indicated a downward trend (F rating) in average target prices which is a Strong Sell rating.

About SOS Limited (NYSE: SOS)

SOS Limited, formerly known as China Rapid Finance Ltd, is a data mining and analysis services company headquartered in Qingdao, China. The company offers a range of data-related services, including data mining, data analysis, data visualization, and data-driven marketing. 

SOS Limited has a team of experienced data scientists who can help you make sense of your data and make better decisions for your business. 

Founded in 2001, SOS Limited is headquartered in Qingdao, China. The company is headed by Mr. Yandai Wang acting as its Executive Chairman & Chief Executive Officer. In addition to data mining and analysis services, SOS Limited also offers blockchain-based insurance and security management solutions. 

With a strong focus on innovation, SOS Limited is constantly exploring new ways to provide value to its clients. As a result, the company has emerged as a leading provider of data mining and analysis services in China.

SOS Limited: Financial Information And Performance

Market Capitalization26.655 M
Shares O/S5.4 M
Revenue306.01M
Revenue Per Share (ttm)41.81
Volume96,977
Avg. Volume90,223
50-Day Range$4.02 – $6.18
52-Week Range$3.92 – $80.00
P/E Ratio (TTM)0.64
EPS (TTM)7.3500
Forward Dividend & YieldN/A
EBITDA-30,413
Total Asset Turnover0.94
Return on Assets-12.88
Return on Equity -14.20
Enterprise Value/Revenue-0.71
Enterprise Value/EBITDA7.13

Liquidity

Current Ratio11.09
Quick Ratio9.49
Cash Ratio5.65

Profitability

Profit Margin-14.11%
Operating Margin (ttm)-11.93%

Cash Flow Statement

Operating Cash Flow (ttm)16.29M
Levered Free Cash Flow (ttm)-7.83M

Additional Financing

SOS Stock Price Prediction
SOS Stock Price Prediction

SOS signed a securities purchase agreement in November with a select group of authorized investors to buy roughly $90.1 million worth of American Depositary Shares (ADS) in a registered direct offering. 

The company has proactively reduced the estimated price of ADS purchase warrants granted on February 17th, February 22nd, March 1st, and April 1st, 2021 to $1.75 per share.

According to the provisions of the securities purchase agreement, the corporation has agreed to sell 51,500,000 ADSs for $1.75 each. The proceeds from the offering will be put to use by the company for working capital, general corporate purposes, and the expansion of its operations in North America.

Poor Profitability

The Gross Profit margin of SOS Limited is 13.41% which is below the average industry standard of 29.3%. The company’s ROA, ROC, and net income margin are in negative percentages, being 1.65%, 3.22%, and 1.29% respectively.

Recent Developments With SOS Limited Stock

A Bitcoin conference in Miami was held recently to talk about and promote cryptocurrency where, among the notable attendees and speakers, were Michael Saylor, Cathie Wood, Anthony Scaramucci, and Peter Thiel. The conference attracted 25000 people. 

The company raised capital from American Depositary Shares (ADS) in February, March, and April, where $20 million worth of stock was sold during the deal, which will utilize the money to fund future international growth.

In addition, Chinese policymakers and legislators are adding to the problems of SOS stock. The financial institutions were restricted by them from doing any crypto transactions whatsoever during last year. 

Later in the year, it put a complete ban on crypto mining and cryptocurrencies. This led to the launch of North America Operations where there were liberal laws for cryptocurrency and mining. 

Should You Invest In SOS Stocks?

SOS Stock Price Prediction
SOS Stock Price Prediction

Deciding whether or not to invest in a company is a complicated process that depends on a variety of factors. For example, when thinking about investing in SOS Limited, a company that focuses on blockchain technology and cryptocurrencies, one must research the underlying factors. 

These include the rate of cryptocurrency adoption, how U.S. regulators will treat cryptocurrencies as an asset class for investments, and how closely crypto/blockchain companies adhere to environmental, social, and governance principles (ESG)

Currently, it appears that cryptocurrencies are slowly but surely becoming more mainstream with a growing number of retailers beginning to accept them as payment. In addition, more institutional investors are starting to view crypto as a legitimate investment asset class.

Given SOS’s existing business model, cryptocurrency use will be closely tied to its balance sheet. The company’s future so appears uncertain. Additionally, the stock’s past performance and level of management confidence are insufficient to justify a stock investment. 

Additionally, investors’ doubts are increased by the fact that the company’s official website doesn’t clearly display its financial statistics as it should.

Given the current market conditions, it may be wise to avoid investing in SOS shares for now. While the company’s long-term prospects look good, there is simply too much uncertainty in the markets right now to justify such a risky investment.

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FAQs – SOS Stock Price Prediction

Q1: What Is The Future Of SOS Stock?

A1: The price of SOS stock is currently 4.68 USD. Our projections indicate long-term growth. However, short-term forecasts indicate negative tendencies in the target prices.

Q2: Can I Buy Fractional Shares Of SOS Ltd?

A2: Yes, if you cannot afford to buy a full SOS share, you can purchase fractional shares for any amount.

Q3: What Are The Documents Required To Invest In SOS Ltd Stocks?

A3: The procedure of investing in SOS stocks is entirely online-based and easy. You will need to submit any Proof of Identification and Address Proof you have with you like Aadhar, PAN, Voter card, Passport, etc. 

Conclusion

The stock market is a fickle beast. Prices can go up or down for any number of reasons, and it can be tough to predict where they’re going next. Analysts look at past trends in order to try and predict future movements in a security’s price. They examine things like historical highs and lows, volume levels, and chart patterns in order to get an idea of where the stock might be headed. 

The future of SOS stock is difficult to predict at this time. Although the long-term analysis looks favorable, investors are to avoid purchasing these stocks expecting short-term gains. 

However, we can use the information in this article on SOS Stock Price Prediction to make an informed decision. If you are thinking about investing in SOS stock, it is important to keep these things in mind and do proper research on your part as well.

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