Vicor (NASDAQ:VICR) Trading Down 12.8% - Should You Sell?

Key Points

• Vicor shares fell 12.8% to about $180 during mid-day trading, with volume down 77% from the average session. The stock remains highly volatile, with a beta of 2.33.
• Analysts maintain a generally positive outlook, with three Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $381.67, despite one recent target reduction to $320.
• Vicor reported strong quarterly results, including $1.04 in EPS versus a $0.65 estimate and 49.3% year-over-year revenue growth. However, insiders have sold more than $117 million worth of shares over the past 90 days.

Vicor Corporation (NASDAQ:VICR - Get Free Report) shares dropped 12.8% during mid-day trading on Tuesday . The company traded as low as $180.54 and last traded at $180.1040. 191,940 shares traded hands during mid-day trading, a decline of 77% from the average session volume of 845,944 shares. The stock had previously closed at $206.44.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on VICR shares. Craig Hallum increased their price target on Vicor to $450.00 and gave the company a "buy" rating in a report on Monday, June 22nd. Roth Capital upped their target price on shares of Vicor from $285.00 to $375.00 and gave the company a "buy" rating in a research report on Monday, June 22nd. Zacks Research downgraded shares of Vicor from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 2nd. Weiss Ratings lowered shares of Vicor from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday. Finally, Needham & Company LLC cut their target price on Vicor from $400.00 to $320.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $381.67.

Vicor Trading Down 9.6%

The company has a 50-day moving average price of $291.22 and a 200 day moving average price of $225.29. The stock has a market capitalization of $8.51 billion, a P/E ratio of 59.84 and a beta of 2.33.

Vicor (NASDAQ:VICR - Get Free Report) last announced its earnings results on Tuesday, July 21st. The electronics maker reported $1.04 EPS for the quarter, topping analysts' consensus estimates of $0.65 by $0.39. The business had revenue of $143.35 million during the quarter, compared to the consensus estimate of $138.37 million. Vicor had a net margin of 30.65% and a return on equity of 19.83%. The firm's revenue was up 49.3% on a year-over-year basis. During the same period in the previous year, the company posted $0.91 earnings per share. As a group, research analysts expect that Vicor Corporation will post 3.12 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Patrizio Vinciarelli sold 20,000 shares of Vicor stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $342.10, for a total value of $6,842,000.00. Following the sale, the chief executive officer owned 8,828,090 shares in the company, valued at $3,020,089,589. This trade represents a 0.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 367,606 shares of company stock worth $117,177,948 in the last ninety days. Corporate insiders own 28.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in VICR. Carolina Wealth Advisors LLC boosted its position in Vicor by 70.9% during the second quarter. Carolina Wealth Advisors LLC now owns 147 shares of the electronics maker's stock worth $56,000 after acquiring an additional 61 shares during the last quarter. Fulton Bank N.A. purchased a new stake in shares of Vicor in the second quarter valued at about $242,000. Sapient Capital LLC increased its position in Vicor by 8.0% during the second quarter. Sapient Capital LLC now owns 3,056 shares of the electronics maker's stock worth $1,161,000 after purchasing an additional 226 shares during the last quarter. Arista Wealth Management LLC acquired a new position in Vicor in the 2nd quarter valued at about $380,000. Finally, GoalVest Advisory LLC grew its stake in shares of Vicor by 23.5% in the 2nd quarter. GoalVest Advisory LLC now owns 321 shares of the electronics maker's stock valued at $122,000 after buying an additional 61 shares during the period. Hedge funds and other institutional investors own 47.45% of the company's stock.

About Vicor

Vicor Corporation is a designer and manufacturer of modular power components and systems, serving a wide range of industries that demand high performance and efficiency. Headquartered in Andover, Massachusetts, the company develops power conversion solutions that help customers optimize energy delivery in applications from telecommunications and data centers to industrial and automotive systems.

The company's product portfolio includes high-density DC-DC converters, AC-DC front-end modules, point-of-load regulators and complete power systems that combine multiple conversion stages in a single package.

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