Taking the lead: ACM Research Inc. (ACMR)

ACM Research Inc. (NASDAQ: ACMR) stock jumped 8.49% on Monday to $11.75 against a previous-day closing price of $10.83. With 0.85 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.01 million shares. During the session, the Semiconductor Equipment & Materials company that operates in wider Technology sector, reached to the highest price of $11.85 whereas the lowest price it dropped to was $10.79. The 52-week range on ACMR shows that it touched its highest point at $29.50 and its lowest point at $5.46 during that stretch. It currently has a 1-year price target of $17.08. Beta for the stock currently stands at 0.74.

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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 ACMR was up-trending over the past week, with a rise of 8.60%, but this was up by 41.23% over a month. Three-month performance surged to 86.51% while six-month performance fell -26.05%. The stock lost -55.36% in the past year, while it has gained 52.40% so far this year. A look at the trailing 12-month EPS for ACMR yields 0.65 with Next year EPS estimates of 0.85. For the next quarter, that number is 0.14. This implies an EPS growth rate of 95.50% for this year and 8.78% for next year. EPS is expected to grow by 42.74% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 109.70%.

Float and Shares Shorts:

At present, 59.36 million ACMR shares are outstanding with a float of 44.62 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.53 million, which was 7.65% higher than short shares on Sep 14, 2022. In addition to Dr. Hui Wang Ph.D. as the firm’s Founder, Chairman, CEO & Pres, Mr. Mark A. McKechnie serves as its CFO, Exec. VP, Sec. & Treasurer.


Institutional Ownership:

Through their ownership of 71.53% of ACMR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.94% of ACMR, in contrast to 20.78% held by mutual funds. Shares owned by individuals account for 14.89%. As the largest shareholder in ACMR with 6.79% of the stake, Morgan Stanley & Co. LLC holds 3,678,132 shares worth 3,678,132. A second-largest stockholder of ACMR, Snow Lake Capital, holds 3,600,000 shares, controlling over 6.64% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ACMR, holding 2,801,563 shares or 5.17% stake. With a 2.39% stake in ACMR, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 1,295,355 shares are owned by the mutual fund manager. The Government Pension Fund – Global, which owns about 2.17% of ACMR stock, is the second-largest Mutual Fund holder. It holds 1,174,935 shares valued at 9.06 million. iShares Russell 2000 ETF holds 1.99% of the stake in ACMR, owning 1,079,492 shares worth 8.32 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ACMR since 9 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 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 ACMR analysts setting a high price target of $32.00 and a low target of $7.00, the average target price over the next 12 months is $16.08. Based on these targets, ACMR could surge 172.34% to reach the target high and fall by -40.43% to reach the target low. Reaching the average price target will result in a growth of 36.85% 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. ACMR will report FY 2022 earnings on 02/23/2024. Analysts have provided yearly estimates in a range of $0.92 being high and $0.50 being low. For ACMR, this leads to a yearly average estimate of $0.70. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ACM Research Inc. surprised analysts by $0.19 when it reported $0.42 EPS against a consensus estimate of $0.23. The surprise factor in the prior quarter was $0.16. Based on analyst estimates, the high estimate for the next quarter is $0.29 and the low estimate is $0.07. The average estimate for the next quarter is thus $0.16.

Summary of Insider Activity:

Insiders traded ACMR stock several times over the past three months with 2 Buys and 3 Sells. In these transactions, 75,000 shares were bought while 39,470 shares were sold. The number of buy transactions has increased to 12 while that of sell transactions has risen to 24 over the past year. The total number of shares bought during that period was 264,088 while 162,951 shares were sold.

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