CarLotz Dips 19%. Should You Buy Or Sell LOTZ Stocks?

2 min read | May 27, 2021 02:33 AM AEST | By Raza Naqvi

CarLotz Dips 19%. Should You Buy Or Sell LOTZ Stocks? — Image source: Andrey Tolkachev,Shutterstock

CarLotz Inc (NASDAQ:LOTZ, LOTZ:US)

Since its debut on the Nasdaq stock exchange in January 2021, the ride hasn’t been an easy one for CarLotz stock. The scrip is down by 40 per cent quarter-to-date (QTD).

Investors, however, may want to explore this as an entry point as the used vehicles market is likely to boom in future.

In the first quarter of 2021, CarLotz opened three new hubs and met the company's guidance of the previous quarter. By selling 2,554 units in Q1 2021, it has exceeded its expectations.

CarLotz estimates sales of 13,000 to 15,000 units in the current fiscal year, which could reflect an increase of 100 per cent year-over-year (YoY). Since the company has met the expectations in the past, chances are high that it will continue the momentum.

How Do CarLotz's Financials Look?

CarLotz’s net revenues increased 123 per cent YoY to US$ 56.6 million in Q1 2021. Meeting its expectations for the first quarter of 2021, the company posted a gross profit of US$ 2 million.

From a mere US$ 2.2 million in Q4 2020, the company managed to increase its cash and cash equivalents to US$ 74.4 million in Q1 2021. The value of CarLotz’s total assets amounted to US$ 326.6 million in the latest quarter.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.

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