Avinger, Inc. (AVGR) Stock Too Hot to Handle

Analysts at Ladenburg Thalmann, assumed coverage of Avinger, Inc. (NASDAQ:AVGR) with Buy recommendation, according to their opinion released on March 09. Oppenheimer analysts have downgraded their rating of AVGR stock from Outperform to Perform in a separate flash note to investors on April 12. Analysts at Canaccord Genuity downgraded the stock to a Hold call from its previous Buy stance, in a research note that dated back to April 11.

How do you judge Wall Street’s opinion of AVGR stock? You could look at price, sure. But that doesn’t tell the whole story. Short sellers are getting bullish about Avinger, Inc. (NASDAQ:AVGR) during the most recent two-week period. Looking at the sentiment indicator for the AVGR stock we see that the short-interest ratio is at 1 while the average analyst recommendations at 1 suggests selling these shares. Between October 31 and November 15, the total number of shorted shares amounted to 226.22 thousand shares. That was 87.78% less than the total of 1.85 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for Avinger, Inc. at the November 15th settlement plunged to 879,858, as compared to 1,272,256 at the October 31st report. That brought days to cover 31.27% down from the 1.455053 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Avinger, Inc. (NASDAQ:AVGR)’s prospects. The earliest insider trade took place on 11/15/2017. Simpson John B Ph D Md parted with a total of 1.07 million shares of company at average share price of $0.25. The total for the sales was set at $268.53 thousand. After this transaction, the Executive Chairman, 10% Owner account balance stood at 55.16 thousand shares. The stock grew 40 percent since that insider sale. On 08/16/2016, Soinski Jeffrey M, CEO, purchased 57.1 thousand shares at a price per share of $3.5. This added 199.85 thousand shares to the insider’s fortune and the stock saw a -90 percent retreat in value since the news became public. This transaction left 59.35 thousand shares in the CEO account. On 08/16/2016, CFO Ferguson Matthew performed a purchase transaction worth $24.5 thousand. This purchase at $3.5 each has added 7 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -90 percent decrease since the transaction was reported. The insider now is left with 25.75 thousand shares remaining in the account. Simpson John D., who performs the Sr. VP, Sales & Marketing job, sold 32.5 thousand shares for $204.1 thousand. The disposal occurred on 07/20/2016 was priced at $6.28 per share. The share price plunged -94.43 percent since the reporting date. Simpson John D. now left with a stake of 221.06 thousand AVGR stock worth $75.16 thousand after the insider selling.

Avinger, Inc. (AVGR) is expected to jump by 635.29 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $2.5-month high price target. This represents a whopping 635.29 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $2.5, which represents a return potential of 635.29 percent when compared to the closing price of the stock of $0.34 on Thursday, December 06. The lowest price target for the stock is $2.5 — slightly more than 635.29 percent from AVGR’s current share price.

The shares are currently floating around the first support level of $0.32. Below this, the next support is placed in the zone of $0.29. Till the time, the AVGR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 35.29 on daily chart, which may remain a cause for comfort. If the price breaks below $0.29 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.38 mark may result into a pull-back move towards $0.42 level.

AVGR shares accumulated 0 points or 2.99 percent on Thursday to $0.34 with a light trade volume of 12.919 million shares. After opening the session at $0.36, the shares went as high as $0.397 and as low as $0.33, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $7.57 million and now has 21.94 million shares outstanding. Avinger, Inc. (AVGR) stock has lost -0.58 percent of market value in 21 trading days.

AVGR stock has a trailing 3-year beta of 1.96, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$22.09 a share in the trailing twelve months. The stock’s value has fallen -95.26 percent year to date (YTD) against a decline of -96.27 percent in 12 month’s time. The company’s shares still trade -96.81 percent away from its 1-year high of $10.80 and 27.78 percent up from 52-week low of $0.27. The average consensus rating on the company is 1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Avinger, Inc. (AVGR) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry AVGR operates in has an average P/E of 195.05. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 0.97 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8.48. 12.9 percent is the gross profit margin for Avinger, Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

AVGR will be showing off its Q4 earnings on March 14. Analysts are forecasting revenue to climb 32.8 percent to $2.54M in the next fiscal quarter, while earnings are seen soaring by nearly -97.21 percent to -$0.29 per share. History has shown that shares in Avinger, Inc. have gone down on 8 different earnings reaction days and are predicted to add 0.08 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.56 per share, worse than the -$0.51, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.02M, worse than the $2.17M analysts expected. Earnings are estimated to increase by 44.8 percent this year, 86.5 percent next year and continue to increase by 0 percent annually for the next 5 years.