Is It Time To Get Into — Or Out Of — Veeco Instruments Inc. (VECO)?

Veeco Instruments Inc. (NASDAQ:VECO) could be among the worst stocks to invest in right now as the company shares are trading 6.94% or 0.82 points down from last closing price of $11.81, reaching $10.99 at last check. Any clue why there is so much of action in the VECO stock? The share price has dropped in 3 of the last 5 days and is up 6.11% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on solid volume too with far more shares changing hands than in a normal session. Trading activity as of this writing strengthened by 80,258 shares, and in total 263858 shares valued at $2.9 million were seen changing hands compared with 183600 shares valued at $2.168 million recorded at the previous session. You should take into consideration that a greater volume on lower prices causes the situation where nobody wants to continue with their long position and wants to exit from the VECO stock.

Veeco Instruments Inc. (VECO) shares have notched a 3-month gain of about 6.11%, but has still advanced 59.38% year to date. By comparison, the stock sank -35.64% over the past 12 months, while it slipped -9.71% over the 1 month. The company’s market cap is around $556.25M, with its short interest ratio standing at 8.66%.

In the current trading session for VECO, the stock witnessed two major price actions, it rose to a high of $11.67 and was down as much as $10.95 at one point. The high recorded is very low when compared to their 52-week high which is $6.27. The 52-week high is now at -38.5 distance from current price. Their recent low of $18 represents a 76.55% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for VECO is $14.75, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of Veeco Instruments Inc. earned $-8.74 per share in the trailing 12 months and has a P/E ratio of -1.26. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 8.06 and lower compared to the sector’s average of 13.31. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. VECO also has P/S multiple of 1.07. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 9.03x.

The company recorded an interesting insider purchase transaction by the CFO on Aug 23, 2018. A Securities and Exchanges Commission filings show that Shubham Maheshwari bought a total of 5,000 VECO shares that day for a sum of around $50,250. The filings show that the insider stake has now grown to 93,323 shares, currently worth $1,025,620. Veeco Instruments Inc. (VECO) insiders have acquired 55,986 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to shares. In total, individual insiders traded 55,986 shares in the business, which makes up 15.573% of 359,497 shares that were traded over a year. In the past 12 months, insiders have purchased 317,371 shares while the seller parted with 42,126 shares.

VECO‘s last price was up 6.91% as compared to the average trading price of 50 days recorded at $10.28 while enlarging the period to 200 trading days, the average closing price was $12.23. At present, there are 47.1 million in the total number of common shares owned by the public and among those 46.9 million shares have been available to trade. The percentage of shares being held by the company management was 2.4% while institutions stake was 98.5%. The company has generated negative returns on equity over the last 12 months (-80.7%). It managed to keep its gross profit margin at 35.6% over the past 12 months.

When assessing the full upside of the VECO stock, there is another set of technicals that should be looked into and considered. Its -6.69% decline from moving average of $11.78 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 1.25 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of Veeco Instruments Inc. — 2 analysts rate the stock as a buy with another 0 rating it strong buy. There are 1 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $13.6667 on shares of Veeco Instruments Inc. (NASDAQ:VECO), which corresponds to 24.81% upside potential than its current market price of $10.99 and implies potential despite the recent drop in the price. However, their current target price has climbed from $13.5833 a month ago and is down handily from the consensus target of $25 a quarter ago.

In the last five years, the EPS of the company has been roughly -51.4%. Though the percentage looks disappointing, extra headwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will decrease annually by 0%. The revenue of the company has risen at an average annualized rate of about 10.3 over the last five years. The company recently recorded a drop of -37.3%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards VECO stock. BlueMountain Capital Management LLC added position in the company after it grew 50% or 8,496 shares of its common stock. The hedge fund now owns 12,744 shares worth $140,057, SEC documents show. SEI Investments Co shored up assets in the stock as 5944.24 shares have been purchased, increasing its stake by 32.7% to 7,888 shares which are currently valued at $86,689. In addition, Ellington Management Group LLC recently reported that it now owns 12,400 shares making a total of $136,276 based on the recent price. This refelects a change of 151.5% in their ownership.