Accelerant (NYSE:ARX) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• Accelerant shares saw unusually high trading volume, with about 1.47 million shares changing hands, up 4% from the prior session. The stock last traded at $14.37, below its previous close of $14.61.
• Analyst sentiment remains broadly positive, with 10 Buy ratings, two Holds and one Sell, producing a “Moderate Buy” consensus and an average price target of $18.60.
• Accelerant exceeded quarterly earnings expectations, reporting $0.17 per share versus the $0.16 consensus and 53.5% year-over-year revenue growth. However, the company posted a negative net margin of 135.47%, while insiders sold approximately $7.8 million of shares over the past quarter.

Accelerant Holdings (NYSE:ARX - Get Free Report) shares saw unusually-high trading volume on Tuesday . Approximately 1,466,115 shares traded hands during trading, an increase of 4% from the previous session's volume of 1,412,458 shares.The stock last traded at $14.3670 and had previously closed at $14.61.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on ARX shares. Citizens Jmp decreased their price target on Accelerant from $20.00 to $17.00 and set a "market outperform" rating for the company in a report on Monday, April 13th. Weiss Ratings cut shares of Accelerant from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday, July 20th. Raymond James Financial upped their target price on shares of Accelerant from $16.00 to $19.00 and gave the company an "outperform" rating in a research note on Monday, June 1st. Wells Fargo & Company lowered their price target on shares of Accelerant from $17.00 to $16.00 and set an "overweight" rating for the company in a report on Thursday, July 9th. Finally, UBS Group set a $16.00 price objective on shares of Accelerant in a report on Thursday, May 21st. Ten analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $18.60.

Accelerant Stock Performance

The stock has a 50-day simple moving average of $14.12 and a 200-day simple moving average of $13.35. The company has a market capitalization of $3.19 billion and a price-to-earnings ratio of -2.10. The company has a current ratio of 1.61, a quick ratio of 1.61 and a debt-to-equity ratio of 0.17.

Accelerant (NYSE:ARX - Get Free Report) last released its quarterly earnings results on Wednesday, May 13th. The technology company reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.01. The business had revenue of $273.20 million during the quarter. Accelerant had a negative net margin of 135.47% and a positive return on equity of 49.99%. Accelerant's quarterly revenue was up 53.5% compared to the same quarter last year. On average, analysts anticipate that Accelerant Holdings will post 0.73 earnings per share for the current year.

Insider Activity at Accelerant

In other news, COO Matthew David Sternberg sold 17,568 shares of the business's stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $14.64, for a total value of $257,195.52. Following the completion of the sale, the chief operating officer owned 596,482 shares of the company's stock, valued at approximately $8,732,496.48. The trade was a 2.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jeffrey L. Radke sold 80,000 shares of the company's stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $13.18, for a total transaction of $1,054,400.00. Following the completion of the sale, the chief executive officer owned 27,941,939 shares in the company, valued at approximately $368,274,756.02. This trade represents a 0.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 593,068 shares of company stock valued at $7,809,379. 66.59% of the stock is owned by insiders.

Hedge Funds Weigh In On Accelerant

A number of hedge funds have recently bought and sold shares of the company. State of Wyoming acquired a new stake in Accelerant during the first quarter valued at approximately $28,000. Quarry LP bought a new stake in shares of Accelerant in the 3rd quarter valued at approximately $40,000. PNC Financial Services Group Inc. bought a new stake in shares of Accelerant in the 3rd quarter valued at approximately $42,000. Royal Bank of Canada raised its position in shares of Accelerant by 50.3% during the 1st quarter. Royal Bank of Canada now owns 7,729 shares of the technology company's stock valued at $103,000 after acquiring an additional 2,585 shares in the last quarter. Finally, CWM LLC acquired a new stake in shares of Accelerant during the 4th quarter valued at approximately $109,000.

About Accelerant

Aeroflex Holding Corp. (Aeroflex Holding) is a provider of radio frequency (RF) and microwave integrated circuits, components and systems used in the design, development and maintenance of wireless communication systems. The Company's solutions include microelectronic components and test and measurement equipment used by companies in the space, avionics and defense; commercial wireless communications, and medical and other markets. Its products include a range of RF, microwave and millimeter wave microelectronic components, integrated circuits (ICs), and analog and mixed-signal devices.

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