Aterian Inc. (NASDAQ: ATER) stock jumped 3.09% on Friday to $3.00 against a previous-day closing price of $2.91. With 2.24 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.38 million shares. During the session, the Furnishings Fixtures & Appliances company that operates in wider Consumer Cyclical sector, reached to the highest price of $3.1000 whereas the lowest price it dropped to was $2.9220. The 52-week range on ATER shows that it touched its highest point at $19.10 and its lowest point at $2.10 during that stretch. It currently has a 1-year price target of $5.58.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ATER was up-trending over the past week, with a rise of 9.09%, but this was up by 20.00% over a month. Three-month performance surged to 1.35% while six-month performance fell -14.53%. The stock lost -32.43% in the past year, while it has lost -27.01% so far this year. A look at the trailing 12-month EPS for ATER yields -4.29 with Next year EPS estimates of -0.68. For the next quarter, that number is -0.21. This implies an EPS growth rate of -81.40% for this year and 42.40% for next year.
Float and Shares Shorts:
At present, 63.95 million ATER shares are outstanding with a float of 61.91 million shares on hand for trading. On Jul 14, 2022, short shares totaled 9.56 million, which was 13.86% higher than short shares on Jun 14, 2022. In addition to Mr. Yaniv Zion Sarig as the firm’s Co-Founder, Pres, CEO & Chairman, Ms. Michal Chaouat-Fix serves as its Chief Product Officer.
Through their ownership of 28.69% of ATER’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 8.68% of ATER, in contrast to 8.26% held by mutual funds. Shares owned by individuals account for 20.33%. As the largest shareholder in ATER with 7.59% of the stake, Armistice Capital LLC holds 5,233,572 shares worth 5,233,572. A second-largest stockholder of ATER, BlackRock Fund Advisors, holds 3,746,061 shares, controlling over 5.43% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in ATER, holding 2,342,216 shares or 3.40% stake. With a 2.18% stake in ATER, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 1,506,119 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 1.92% of ATER stock, is the second-largest Mutual Fund holder. It holds 1,321,307 shares valued at 3.01 million. Vanguard Extended Market Index Fu holds 0.81% of the stake in ATER, owning 555,355 shares worth 1.27 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ATER since 5 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ATER analysts setting a high price target of $7.00 and a low target of $2.50, the average target price over the next 12 months is $4.80. Based on these targets, ATER could surge 133.33% to reach the target high and fall by -16.67% to reach the target low. Reaching the average price target will result in a growth of 60.0% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ATER will report FY 2022 earnings on 03/08/2023. Analysts have provided yearly estimates in a range of -$1.09 being high and -$1.54 being low. For ATER, this leads to a yearly average estimate of -$1.34. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Aterian Inc. surprised analysts by -$0.08 when it reported -$0.26 EPS against a consensus estimate of -$0.18. The surprise factor in the prior quarter was -$0.51. Based on analyst estimates, the high estimate for the next quarter is -$0.17 and the low estimate is -$0.28. The average estimate for the next quarter is thus -$0.24.
Summary of Insider Activity:
Insiders traded ATER stock several times over the past three months with 14 Buys and 5 Sells. In these transactions, 1,703,333 shares were bought while 145,192 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 15 over the past year. The total number of shares bought during that period was 1,947,649 while 3,529,020 shares were sold.