What Happened?
Shares of power conversion and control solutions provider Vicor Corporation (NASDAQ: VICR) jumped 20.5% in the morning session after the company received a key analyst upgrade to 'Buy' from 'Hold' and posted strong third-quarter results.
Craig-Hallum raised its price target on the stock to $90 from $55, citing a positive outlook on Vicor's royalty potential and its work on advanced power delivery solutions. The upgrade followed the company's impressive financial report. For the quarter, revenues climbed 18.5% to $110.4 million compared to the same period a year ago. Net income saw a substantial increase, reaching $28.3 million, or $0.63 per share, a significant jump from $11.6 million, or $0.26 per share, in the prior year's quarter. Furthermore, the company's gross margin expanded to 57.5% from 49.1%, indicating improved profitability.
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. But moves this big are rare even for Vicor and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 13.4% on the news that the company announced an expansion of its intellectual property (IP) licensing practice, and as investors anticipated its quarterly earnings report scheduled for the same day. The day before the move, Vicor revealed plans to grow its IP licensing for high-density power technologies used in markets like AI, automotive, and industrial. The company noted that settlements and licenses were expected to add almost $300 million to its revenues through 2026.
Vicor is up 74.9% since the beginning of the year, and at $84.32 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 $1,027.
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