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Enthusiast Gaming Holdings ( (TSE:EGLX) ) has provided an update.
Enthusiast Gaming Holdings Inc. has completed the sale of its direct sales business line to Vertiqal Studios Corp., marking a strategic shift to focus on its core strengths in gaming platforms and experiences. This transaction is expected to save approximately C$10 million annually, improve the company’s balance sheet by over C$4.5 million, and enhance its Adjusted EBITDA, allowing Enthusiast Gaming to concentrate on expanding its profitable digital assets and event series.
The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.10 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.
Spark’s Take on TSE:EGLX Stock
According to Spark, TipRanks’ AI Analyst, TSE:EGLX is a Underperform.
The overall stock score is heavily influenced by the company’s poor financial performance, characterized by declining revenues and persistent losses. Technical analysis indicates a bearish trend, with the stock trading below key moving averages. Valuation metrics are weak, with a negative P/E ratio and no dividend yield, further impacting the score.
To see Spark’s full report on TSE:EGLX stock, click here.
More about Enthusiast Gaming Holdings
Enthusiast Gaming is a company that builds tools, platforms, and experiences to enhance gaming experiences. It operates a portfolio of well-known digital gaming properties, such as U.GG, Icy-Veins, TheSimsResource, and PocketGamer, among others. The company generates revenue through programmatic advertising, subscriptions, and events, and focuses on expanding its owned intellectual property and deepening direct engagement with its audience.
Average Trading Volume: 172,702
Technical Sentiment Signal: Sell
Current Market Cap: C$13.53M
See more insights into EGLX stock on TipRanks’ Stock Analysis page.