Worth Watching Stock for Traders: Eltek Ltd. (NASDAQ:ELTK)

Eltek Ltd. (NASDAQ:ELTK) spotted trading -65.82% off 52-week high price. On the other end, the stock has been noted 6.85% away from the low price over the last 52-weeks. The stock changed 0.62% to recent value of $1.62. The stock transacted 29939 shares during most recent day however it has an average volume of 23.37K shares. The company has 2.22M of outstanding shares and 0.88M shares were floated in the market.

Eltek Ltd. (NASDAQ:ELTK) recently provided an update regarding the Company’s recently completed  rights offering.

In March 2019, we issued at no charge to the holders of our ordinary shares subscription rights to purchase up to an aggregate of 3,380,920 shares, such that each shareholders received five subscription rights for every three ordinary shares owned on the record date, at a price of $1.464 per share. The subscription period ended on April 9, 2019. Our shareholders purchased 2,351,701 ordinary shares providing gross proceeds of $3.4 million to the Company. Our principal shareholder beneficially acquired a total of 1,914,076 ordinary shares of the Company, increasing his direct and indirect voting interest from 56.6% to 69.9%.

Mr. Eli Yaffe, CEO, commented: “We appreciate that approximately 70% of the shares were subscribed for in this offering. The proceeds from the offering will improve our financial position as we intend to repay a NIS 5.0 million (approximately US$1.4 million) bank line of credit. The remainder will be used for working capital and other general corporate purposes, including the possible investment in plant and equipment.”

Its earnings per share (EPS) expected to touch remained -4.20% for this year . ELTK has a gross margin of 7.80% and an operating margin of -6.30% while its profit margin remained -7.50% for the last 12 months.

According to the most recent quarter its current ratio was 0.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of -10.67% from the mean of 20 days, -24.05% from mean of 50 days SMA and performed -48.88% from mean of 200 days price. Company’s performance for the week was -6.88%, -25.12% for month and YTD performance remained -24.05%.

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