Novo Integrated Sciences Inc (NASDAQ:NVOS) Is Set To Gap Down After Quarterly Earnings

The premarket action in the market is often a good indicator about the direction of the market for the rest of the day and hence, it may often be a good idea for investors to take a look at the action.

Trading Data

On Tuesday, NVOS stock ended higher by 0.76% to $1.32 with more than 26k shares traded, compared to its average volume of 80k shares. The stock has moved within a range of $1.3000 – 1.3400 after opening trading at $1.34.

Earnings Recap

However, investors in Novo Integrated Sciences Inc (NASDAQ:NVOS) are probably not going to be particularly thrilled this morning considering the fact that the company’s stock has tanked by as much as 5% in the premarket trading period. The health and wellness company was in the news yesterday after it announced its financial results for the fiscal year that had ended on August 31, 2021.

In this situation, it may be a good move for investors to take a closer look at some of the highlights from the financial results. Novo Integrated reported that it had cash and cash equivalents to the tune of $8.3 million at the end of the financial year. The total assets at the end of the year stood at $61.9 million. On the other hand, the revenues for the period stood at $9.3 million and that reflected a considerable improvement from the $7.9 million that it had generated in the previous year.

Key Quote

“This has been a transformative year for Novo. We have invested in several undervalued assets that collectively are core to our differentiated platform solution for healthcare delivery that puts the patient-first. In addition, the Company invested in the necessary human capital required to commercialize our technology offerings, as well as many of our product solutions,” stated Robert Mattacchione, the Company’s CEO and Board Chairman. “

Technical Data

NVOS stock is trading below the 20-Day and 50-Day Moving averages of $1.44 and $1.61 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.24. The stock is down 20% in the past month.