Why Avinger, Inc. (AVGR) Is Susceptible To Wild Price Swings

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.

The number of Avinger, Inc. (NASDAQ:AVGR) shares shorted has fallen by 761,391 shares. When looking at a stock for a potential investment, you want to know what percentage of Wall Street is betting against you. That’s what short interest tells you. The most recent short interest data has been released for the December 31st settlement date, which shows a decrease in total short interest for AVGR, to 149,404, a retreat of 83.6% since December 14th. Average daily volume for Avinger, Inc. at the December 31st settlement plunged to 1,854,809, as compared to 4,397,345 at the December 14th report. That brought days to cover to 1, a 0% decrease from the 1 days to cover recorded at the prior short interest data release. Looking at the experts’ opinion for the AVGR stock we see that the average analyst recommendations at 0 suggests selling these shares.

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 32 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 -90.57 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 -90.57 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 -94.75 percent since the reporting date. Simpson John D. now left with a stake of 221.06 thousand AVGR stock worth $72.95 thousand after the insider selling.

Avinger, Inc. (AVGR) is expected to jump by 657.58 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 657.58 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 657.58 percent when compared to the closing price of the stock of $0.33 on Friday, January 11. The lowest price target for the stock is $2.5 — slightly more than 657.58 percent from AVGR’s current share price.

The shares are currently floating around the first support level of $0.3. Below this, the next support is placed in the zone of $0.27. Till the time, the AVGR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 60.93 on daily chart, which may remain a cause for concern. If the price breaks below $0.27 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.35 mark may result into a pull-back move towards $0.37 level.

AVGR shares accumulated 0.03 points or 9.08 percent on Friday to $0.33 with a heavy trade volume of 4.205 million shares. After opening the session at $0.3, the shares went as high as $0.34 and as low as $0.29, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $7.1 million and now has 21.58 million shares outstanding. Avinger, Inc. (AVGR) stock has lost -1.82 percent of market value in 21 trading days.

AVGR stock has a trailing 3-year beta of 1.51, 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 surged 9.67 percent year to date (YTD) against a decline of -95.94 percent in 12 month’s time. The company’s shares still trade -96.63 percent away from its 1-year high of $9.78 and 82.78 percent up from 52-week low of $0.18. The average consensus rating on the company is 0, 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 195.02. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 0.91 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.