Why is ater stock so risky?
The first risk factor is related to elevated short-seller activity on ATER stock. The company linked the risk to a short-seller report from Culper Research published in May.
How much of Aterian's stock are insiders buying and selling?
In the past three months, Aterian insiders have bought more of their company's stock than they have sold. Specifically, they have bought $11,323,677.00 in company stock and sold $0.00 in company stock. Only 4.80% of the stock of Aterian is held by insiders. Only 30.20% of the stock of Aterian is held by institutions.
What is the upside for Aterian's stock?
Their forecasts range from $12.00 to $50.00. On average, they expect Aterian's stock price to reach $20.40 in the next year. This suggests a possible upside of 363.6% from the stock's current price. View analysts' price targets for Aterian or view top-rated stocks among Wall Street analysts.
Is Aterian (ATR) a good stock to buy?
Only 30.20% of the stock of Aterian is held by institutions. Earnings for Aterian are expected to grow in the coming year, from ($1.33) to ($0.87) per share. The P/E ratio of Aterian is -0.46, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.
Is ATER a good buy?
Aterian has received a consensus rating of Buy. The company's average rating score is 2.75, and is based on 3 buy ratings, 1 hold rating, and no sell ratings.
Will ATER stock go back up?
On average, Wall Street analysts predict that ATERIAN's share price could reach $8.50 by Mar 9, 2023. The average ATERIAN stock price prediction forecasts a potential upside of 229.46% from the current ATER share price of $2.58.
Why did my stock go down?
If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.
Is aterian stock a buy?
Based on analyst ratings, Aterian's 12-month average price target is $6.80. What is ATER's upside potential, based on the analysts' average price target? Aterian has 100.59% upside potential, based on the analysts' average price target.
Who is shorting ATER?
Short selling ATER is an investing strategy that aims to generate trading profit from Aterian as its price is falling. Aterian's stock is trading down $0.21 today. To short Aterian stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender.
Is Xela a buy?
Exela Technologies has received a consensus rating of Buy. The company's average rating score is 2.50, and is based on 1 buy rating, 1 hold rating, and no sell ratings.
Should I buy more stock when it goes down?
If you feel the stock has fallen because the market has overreacted to something, then buying more shares may be a good thing. Likewise, if you feel there has been no fundamental change to the company, then a lower share price may be a great opportunity to scoop up some more stock at a bargain.
What happens if no one sells a stock?
When there are no buyers, you can't sell your shares—you'll be stuck with them until there is some buying interest from other investors. A buyer could pop in a few seconds, or it could take minutes, days, or even weeks in the case of very thinly traded stocks.
Should I buy stocks when they are low or high?
Understanding When to Buy and Sell Stocks. The fundamentals of when to buy a stock and sell a stock comes down to the basics of how a stock market works. The idea is to buy low and sell high: If you buy a stock for $1 and sell it for $2, then you've made a profit.
What does ATER company do?
The company provides Artificial Intelligence Marketplace e-Commerce Engine, a software technology platform, which uses machine learning, natural language processing, and data analytics to design, develop, market, and sell products.
ATER launches Shareholder Perks Program
On 30 August 2021, ATER announced the introduction of the Shareholder Perks Program. The program offers Aterian stockholders who satisfy specific requirements different discounts on the company’s best-selling items.
ATER published second quarter 2021 results
ATER announced second-quarter results 2021 on 9 th August 2021. In the second quarter of 2020, net sales increased by 14% to $68.2 million. The Gross margin increased to 48.0 percent in the second quarter of 2020
ATER announces investigation of Array Technologies
On 6 th August 2021, ATER announces the filing of a class-action lawsuit against ARRY. They state that ARRY made false and misleading statements because they failed to disclose the prices of certain commodities, such as steel.
Conclusion
Investors have reacted badly to the release of financial data for the second quarter of 2021. When compared to the same period the previous year, the Aterian stock’s net loss has grown considerably. Before adding ATER stock to their portfolio, investors should conduct extensive research.
Key Points
Short-squeeze excitement has powered gains for Aterian stock recently, but the momentum may be fading.
What happened
Shares of Aterian ( NASDAQ:ATER) crashed on Tuesday. The e-commerce company saw its valuation surge after emerging as a potential short-squeeze candidate, but big gains over the last couple of weeks also opened the door for a dramatic pullback. The stock ended today's trading down roughly 39%.
So what
Aterian had attracted heightened short interest due to an uninspiring business performance and a highly bearish report from Culper Research earlier this year alleging that the online retail company had some unscrupulous business connections.Short squeezes have helped power incredible share-price gains for companies, including GameStop, AMC Entertainment, and Support.com this year, and Aterian had been gaining favor as a new short-squeeze candidate over the last month..
Now what
Aterian has managed to drum up some bullish sentiment as it touted the advantages of its AI-powered e-commerce services. However, the company's core business still revolves around reselling low-cost goods, and the outlook for consistent profitability and long-term earnings growth remains questionable.
Why the Holdup in the Registration Process
In an SEC filing on June 10, Aterian revealed that “…subject to the Investors’ reasonable cooperation and provision of any required information, the company has agreed to use commercially reasonable efforts to file a registration statement.”
Investor Takeaway
It appears that Aterian was in a severe crisis that required sacrifices. Management had to keep stock issuance options open until it reached a settlement with big lender High Trail Investments. It’s safe to assume that ATER was free to register all newly issued common stock batches after the September debt resolutions.
Debt Woes and Rare Expenses Over for ATER Stock
The biggest threat to Aterian’s business was its debt burden after a default during the second quarter. Although the solution (which included the conversion of debt to equity) came with some penalties and an associated $107 million debt extinguishment loss, ATER stock no longer has a huge debt load.
Acquisitions Could Resume
Aterian was disproportionately impacted by rising shipping costs due to a significant portfolio of outsized goods merchandise. Home appliances consume more space in a shipping container than most electronic gadgets do.
Aterian Already Solved Some of its Shipping Problems
During the past quarter, Amazon Global Logistics reportedly offered the company an opportunity to secure competitive shipping rates for approximately 50% of Aterian’s projected revenue in the next 12 months.
Time to Buy Low?
Trading near $4 a share, Aterian’s stock price is getting closer to crisis-time lows printed in August. Investor sentiment remains largely negative, even as the company’s revenue showed some signs of recovery and fundamentals improve.
How much does Aterian make?
Aterian has a market capitalization of $367.24 million and generates $185.70 million in revenue each year. The company earns $-63,130,000.00 in net income (profit) each year or ($1.50) on an earnings per share basis.
What is Aterian's FY 2021 earnings?
The company provided EPS guidance of - for the period. The company issued revenue guidance of $360 million-$390 million.
A Closer Look at ATER Stock
There’s simply no denying it. Aterian has “meme stock” written all over it.
A Debt Threat and a Dilution Solution
I did some digging as well, and found that Aterian was bragging that the company had “ reached an agreement with its lender, High Trail, to pay down its outstanding secured term debt in an aggregate principal amount of $66.3 million plus accrued and unpaid interest.”
The Bottom Line on ATER Stock
It’s with no joy that I report these red flags. Rather, I’m just trying to alert people to Aterian’s possible issues.
Debt Woes and Rare Expenses Over For Ater Stock
- The biggest threat to Aterian’s business was its debt burden after a default during the second quarter. Although the solution (which included the conversion of debt to equity) came with some penalties and an associated $107 million debt extinguishment loss, ATER stock no longer has a huge debt load. The company is left with a much smaller $25 milli...
Acquisitions Could Resume
- Aterian was disproportionately impacted by rising shipping costs due to a significant portfolio of outsized goods merchandise. Home appliances consume more space in a shipping container than most electronic gadgets do. However, the company could start gaining more breathing space and could see its gross margins recover as freight charges normalize in the near future. Althoug…
Aterian Already Solved Some of Its Shipping Problems
- During the past quarter, Amazon Global Logistics reportedly offered the company an opportunity to secure competitive shipping rates for approximately 50% of Aterian’s projected revenue in the next 12 months. ATER also secured reduced rates with freight forwarding company Flexport, XPO Logistics (NYSE:XPO) and other logistics providers, as well as selected manufacturing partners i…
Time to Buy Low?
- Trading near $4 a share, Aterian’s stock price is getting closer to crisis-time lows printed in August. Investor sentiment remains largely negative, even as the company’s revenue showed some signs of recovery and fundamentals improve. Notably, trading volumes on ATER stock have been persistently thinning out lately and reported short-interest has been declining from Septem…