FARO Technologies Inc. (NASDAQ: FARO) stock fell -21.05% on Friday to $27.87 against a previous-day closing price of $35.30. With 1.75 million shares changed hands, the volume of the stock remained heavier than its average volume of 96820.0 shares. During the session, the Scientific & Technical Instruments company that operates in wider Technology sector, reached to the highest price of $28.57 whereas the lowest price it dropped to was $26.13. The 52-week range on FARO shows that it touched its highest point at $61.20 and its lowest point at $25.20 during that stretch. It currently has a 1-year price target of $39.00. Beta for the stock currently stands at 1.35.
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 FARO was down-trending over the past week, with a drop of -18.39%, but this was down by -2.14% over a month. Three-month performance surged to 6.25% while six-month performance fell -13.66%. The stock lost -52.15% in the past year, while it has lost -5.24% so far this year. A look at the trailing 12-month EPS for FARO yields -3.08 with Next year EPS estimates of 0.58. For the next quarter, that number is 0.34. This implies an EPS growth rate of -64.30% for this year and 193.40% for next year. EPS is expected to grow by 30.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -39.60%.
Float and Shares Shorts:
At present, 18.78 million FARO shares are outstanding with a float of 18.59 million shares on hand for trading. On Oct 13, 2022, short shares totaled 0.52 million, which was 2.78% higher than short shares on Sep 14, 2022. In addition to Mr. Michael D. Burger as the firm’s Pres, CEO & Director, Mr. Allen L. Muhich serves as its Chief Financial Officer.
Through their ownership of 107.13% of FARO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 65.99% of FARO, in contrast to 4.72% held by mutual funds. Shares owned by individuals account for 34.95%. As the largest shareholder in FARO with 14.98% of the stake, BlackRock Fund Advisors holds 2,813,817 shares worth 2,813,817. A second-largest stockholder of FARO, The Vanguard Group, Inc., holds 2,118,414 shares, controlling over 11.28% of the firm’s shares. Royce & Associates LP is the third largest shareholder in FARO, holding 1,020,376 shares or 5.43% stake. With a 7.40% stake in FARO, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 1,389,236 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.91% of FARO stock, is the second-largest Mutual Fund holder. It holds 546,929 shares valued at 16.09 million. Vanguard Small Cap Index Fund holds 2.58% of the stake in FARO, owning 483,974 shares worth 14.23 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FARO since 4 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 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 FARO analysts setting a high price target of $55.00 and a low target of $30.00, the average target price over the next 12 months is $39.00. Based on these targets, FARO could surge 97.34% to reach the target high and rise by 7.64% to reach the target low. Reaching the average price target will result in a growth of 39.94% 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. FARO will report FY 2022 earnings on 02/15/2024. Analysts have provided yearly estimates in a range of $0.23 being high and -$0.02 being low. For FARO, this leads to a yearly average estimate of $0.14. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. FARO Technologies Inc. surprised analysts by $0.07 when it reported $0.03 EPS against a consensus estimate of -$0.04. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is $0.37 and the low estimate is $0.30. The average estimate for the next quarter is thus $0.34.
Summary of Insider Activity:
Insiders traded FARO stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 8 over the past year. The total number of shares bought during that period was 101,570 while 10,538 shares were sold.