Short-Sellers Are Taking a Risky Bet Against Avinger, Inc. (AVGR)

The number of Avinger, Inc. (NASDAQ:AVGR) shares shorted has climbed by 77,313 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 January 31st settlement date, which shows a increase in total short interest for AVGR, to 923,295, a surge of 9.14% since January 15th. Average daily volume for Avinger, Inc. at the January 31st settlement plunged to 1,510,993, as compared to 2,697,755 at the January 15th 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.

Investors will get their next glimpse of AVGR’s 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.

Avinger, Inc. (AVGR) will probably climb 509.76 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $2.5 price as 12-month high target. This represents a whopping 509.76 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 509.76 percent when compared to the closing price of the stock of $0.41 on Wednesday, February 13. The lowest price target for the stock is $2.5 — slightly more than 509.76 percent from AVGR’s current share price.

The stock is currently hovering around the first support level of $0.39. Below this, the next support is placed in the zone of $0.37. Till the time, the AVGR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 65.31 on daily chart, which may remain a cause for concern. If the price breaks below $0.37 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.42 mark may result into a pull-back move towards $0.43 level.

On 13th of February, Avinger, Inc. (NASDAQ:AVGR) shares ended higher after a volatile session. The shares accumulated 0.03 points or 7.87 percent at $0.41 with a light trade volume of 1.651 million shares. After opening the session at $0.3885, the shares went as high as $0.41 and as low as $0.379, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $9.27 million and now has 22.6 million shares outstanding. Avinger, Inc. (AVGR) stock has gained 18.81 percent of market value in 21 trading days.

AVGR stock has a trailing 3-year beta of 1.61, 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 36.67 percent year to date (YTD) against a decline of -88.05 percent in 12 month’s time. The company’s shares still trade -88.92 percent away from its 1-year high of $3.70 and 127.78 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 195.33. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 1.19 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8.46. 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.

Let’s take a look at some insider activity at Avinger, Inc. (NASDAQ:AVGR) and see the pattern. 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 52 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 -89.14 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 -89.14 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 -93.95 percent since the reporting date. Simpson John D. now left with a stake of 221.06 thousand AVGR stock worth $90.64 thousand after the insider selling.