II-VI Incorporated (NASDAQ:IIVI) is one of the hottest stocks trading today on the U.S. Markets as the company shares are 4.23% or 1.67 points higher from last closing price of $39.51, reaching $41.18 at last check. Any clue why there is so much of action in the IIVI stock? The share price has risen in 4 of the last 5 days and is up 16.21% over the past week. It will be exciting to see whether the stock manages to continue increasing 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 2,680 shares, and in total 597180 shares valued at $24.592 million were seen changing hands compared with 594500 shares valued at $23.489 million recorded at the previous session. You should take into consideration that a greater volume on higher prices causes bullish signal for the market. It shows the sentiment is in an uptrend and more and more traders want to enter in the IIVI stock.
II-VI Incorporated (IIVI) shares have notched a 3-month gain of about 16.21%, but has still advanced 21.72% year to date. By comparison, the stock sank -15.94% over the past 12 months, while it jumped 3.78% over the 1 month. The company’s market cap is around $2.52B, with its short interest ratio standing at 13.12%.
In the current trading session for IIVI, the stock witnessed two major price actions, it rose to a high of $41.22 and was down as much as $39.37 at one point. The high recorded is very low when compared to their 52-week high which is $29.31. The 52-week high is now at -16.26 distance from current price. Their recent low of $49.1 represents a 40.28% 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 IIVI is $47.6, 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 II-VI Incorporated earned $1.63 per share in the trailing 12 months and has a P/E ratio of 25.26. 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 29.2 and lower compared to the sector’s average of 28.03. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. IIVI also has P/S multiple of 1.93. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 0.62x.
The company recorded an interesting insider sale transaction by the CFO on Aug 19, 2019. A Securities and Exchanges Commission filings show that Mary Jane Raymond sold a total of 16,000 IIVI shares that day for a sum of around $628,000. The filings show that the insider now retains 48,427 shares, currently worth $1,994,224. II-VI Incorporated (IIVI) insiders have acquired 355,048 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 154,130 shares. In total, individual insiders traded 509,178 shares in the business, which makes up 75.896% of 670,893 shares that were traded over a year. In the past 12 months, insiders have purchased 372,498 shares while the seller parted with 298,395 shares.
IIVI‘s last price was up 12.12% as compared to the average trading price of 50 days recorded at $36.73 while enlarging the period to 200 trading days, the average closing price was $38. At present, there are 63.79 million in the total number of common shares owned by the public and among those 59.69 million shares have been available to trade. The percentage of shares being held by the company management was 1.5% while institutions stake was 95.2%. The company has generated positive returns on equity over the last 12 months (9.9%). It managed to keep its gross profit margin at 38.3% over the past 12 months.
When assessing the full upside of the IIVI stock, there is another set of technicals that should be looked into and considered. Its 8.14% gain from moving average of $38.08 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 1.08 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 II-VI Incorporated — 8 analysts rate the stock as a buy with another 0 rating it strong buy. There are 2 analysts who maintain a hold rating for the stock, with 1 giving it a sell rating. Analysts arrived at a 12-month price target of $45 on shares of II-VI Incorporated (NASDAQ:IIVI), which corresponds to 9.17% upside potential than its current market price of $41.18 and implies potential despite the recent advance in the price. However, their current target price has fallen from $47.8182 a month ago and is down handily from the consensus target of $51.1 a quarter ago.
In the last five years, the EPS of the company has been roughly 22.1%. Though the percentage looks encouraging, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 20.77%. The revenue of the company has risen at an average annualized rate of about 14.8 over the last five years. The company recently recorded an increase of 13%, but this figure is rather attractive.
Let’s briefly check the hedge fund interest towards IIVI stock. TIG Advisors LLC added position in the company after it grew 130.4% or 55,924 shares of its common stock. The hedge fund now owns 128,848 shares worth $5,305,961, SEC documents show. Barrow Hanley Mewhinney & Strauss LLC cut assets in the stock as 2033492 shares have been sold, reducing its stake by -7.5% to 1,880,980 shares which are currently valued at $77,458,756. In addition, Needham Investment Management LLC recently reported that it now owns 160,600 shares making a total of $6,613,508 based on the recent price. This refelects a change of -4.7% in their ownership.