B.Riley FBR Thinks Gaia Inc’s Stock is Going to Recover

By Jason Carr

In a report released today, Eric Wold from B.Riley FBR reiterated a Buy rating on Gaia Inc (GAIAResearch Report). The company’s shares closed on Monday at $9.42, close to its 52-week low of $9.36.

Wold observed:

“We are revisiting Gaia (GAIA) ahead of, what we believe could be, positive actions by the Board in early 2019 to address growing investor balance sheet concerns and a clear need to reach profitability earlier than the current guidance. Although we remain confident that management could guide GAIA to profitability by early 2020 without needing to raise additional capital, we acknowledge that the wiggle room is minimal and the path is not without risks. For this reason and due to the 59% decline in the shares from the late-June peak, we would not be surprised if the Board pushed for profitability to be reached by around mid-2019 and this was communicated on the 4Q18 conference call in early March (if not before).”

According to TipRanks.com, Wold is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -5.6% and a 34.6% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.

Gaia Inc has an analyst consensus of Moderate Buy, with a price target consensus of $23.50.

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Based on Gaia Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $10.33 million. In comparison, last year the company had a GAAP net loss of $5.21 million.

Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GAIA in relation to earlier this year.

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Gaia, Inc. operates a global digital video streaming subscription service and online community. It provides its services through the following channels: Seeking Truth, Transformation, and Yoga. The company was founded by Jirka Rysavy on July 7, 1988 and is headquartered in Louisville, CO.