What Happened?
Shares of power conversion and control solutions provider Vicor Corporation (NASDAQ: VICR) jumped 4.8% in the afternoon session after the stock reached a 52-week high, continuing a rally fueled by the company's strong financial performance.
This milestone followed a period of significant growth for the company. The positive momentum was supported by a strong third-quarter earnings report, where Vicor's revenues grew 18.5% year on year to $110.4 million, beating analyst expectations by 15.7%. Since that report, the stock had already gained 47.6%. Adding to investor confidence, the company's financial health appeared solid, with an impressive 56.7% gross profit margin and a strong balance sheet that held more cash than debt.
After the initial pop the shares cooled down to $101.90, up 3.7% from previous close.
Is now the time to buy Vicor? Access our full analysis report here.
What Is The Market Telling Us
Vicor’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 4.1% on the news that Roth Capital initiated coverage on the company with a "Buy" rating and a $115 price target.
This move signaled a new vote of confidence from the financial firm. An analyst initiation often attracts investor attention because it provides a fresh perspective on a company's potential. Roth Capital's price target suggested significant upside from the stock's previous trading level. This positive outlook was consistent with the broader view from other analysts, who held a consensus "Moderate Buy" rating on the stock.
Vicor is up 111% since the beginning of the year, and at $101.90 per share, has set a new 52-week high. Investors who bought $1,000 worth of Vicor’s shares 5 years ago would now be looking at an investment worth $1,087.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.
