Few Indicators Flashing Warning Signs for Ichor Holdings, Ltd. (ICHR)

Let’s reassess the active stocks with an eye toward ICHR stock. Just how should we respond to Wednesday’s drubbing? Is the mighty fruit now destined to decay? Or is this a mere bruising and nothing more? On 07 November, shares of Ichor Holdings, Ltd. (NASDAQ:ICHR) closed lower after a volatile session. The shares dropped -3.25 points or -16.86 percent at $16.03 with a light trade volume of 2.723 million shares. After opening the session at $16.37, the shares went as high as $17.6 and as low as $15.89, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $412 million and now has 25.67 million shares outstanding. Ichor Holdings, Ltd. (ICHR) stock has lost -14.6 percent of market value in 21 trading days.

ICHR stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.73 a share in the trailing twelve months. The stock’s value has fallen -34.84 percent year to date (YTD) against a decline of -48.37 percent in 12 month’s time. The company’s shares still trade -53.92 percent away from its 1-year high of $34.79 and 5.39 percent up from 52-week low of $15.21. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Ichor Holdings, Ltd. (ICHR) will probably climb 109.61 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $41-month high price target. This represents a whopping 155.77 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $32, which represents a return potential of 99.63 percent when compared to the closing price of the stock of $16.03 on Wednesday, November 07. The lowest price target for the stock is $28 — slightly more than 74.67 percent from ICHR’s current share price.

History has shown that shares in Ichor Holdings, Ltd. have gone up on 4 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings.

Let’s take a look at some insider activity at Ichor Holdings, Ltd. (NASDAQ:ICHR) and see the pattern. The earliest insider trade took place on 08/27/2018. Andreson Jeff gathered a total of 5.2 thousand shares of company at average share price of $24.22. The total for the purchase was set at $125.94 thousand. After this transaction, the CFO account balance stood at 10 thousand shares. The stock lost -33.82 percent since that insider purchase. On 07/09/2018, Mackenzie Iain, Director, sold 4.68 thousand shares at a price per share of $22.13. This removed 103.57 thousand shares from the insider’s fortune and the stock saw a -27.56 percent retreat in value since the news became public. This transaction left 0 thousand shares in the Director account.

On 05/15/2018, CEO and Chairman Rohrs Thomas M performed a sale transaction worth $3.91 million. This sale at $26.09 each has eliminated 150 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -38.56 percent decrease since the transaction was reported. The insider now is left with 62.32 thousand shares remaining in the account. Mackenzie Iain, who performs the Director job, sold 4.68 thousand shares for $113.68 thousand. The disposal occurred on 04/09/2018 was priced at $24.29 per share. The share price plunged -34.01 percent since the reporting date. Mackenzie Iain now left with a stake of 0 thousand ICHR stock worth $0 thousand after the insider selling.

The stock is currently hovering around the first support level of $15.41. Below this, the next support is placed in the zone of $14.8. Till the time, the ICHR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 36.79 on daily chart, which may remain a cause for comfort. If the price breaks below $14.8 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $17.12 mark may result into a pull-back move towards $18.22 level.

Further, it is sporting a 0.48 on the Price-to-Sales ratio. Compare this with the industry average P/S of 79.24. 16.4 percent is the gross profit margin for Ichor Holdings, Ltd. and operating margin sits at 7.9 percent. Along with this, the net profit margin is 9.2 percent.