Advanced Energy Industries (NASDAQ:AEIS) Reaches New 1-Year High - Should You Buy?

Advanced Energy Industries, Inc. (NASDAQ:AEIS) experienced a significant milestone as its share price hit a new 52-week high during trading on Monday. The stock peaked at $121.07 before closing at $121.04, with a total trading volume of 67,404 shares exchanged. This performance marks an uptick from its previous closing price of $117.22.

Analysts Reassess Price Targets

In light of these developments, several brokerages have offered updated insights on AEIS. Needham & Company LLC maintained a "hold" rating within a research note circulated on November 20th. Conversely, Baird R W promoted Advanced Energy Industries to a "strong-buy" rating as noted in their September 20th report. Additionally, Wells Fargo & Company adjusted their price target upwards from $98.00 to $105.00, while allocating an "equal weight" rating on December 6th. Robert W. Baird also raised the price target from $124.00 to $134.00, designating the firm with an "outperform" rating as of December 11th. Finally, Susquehanna slightly decreased their price objective from $103.00 to $92.00, aligning the company with a "neutral" rating. Overall, among the consensus ratings from analysts, AEIS holds a "Moderate Buy" designation and an average target price of $120.25, with six analysts suggesting a hold, four advocating for buy, and one marking it as strong buy.

Read Our Latest Stock Report on AEIS

Performance Metrics of Advanced Energy Industries

The company shows favorable financial ratios with a debt-to-equity ratio of 0.48, a quick ratio of 3.32, and a current ratio of 4.62. Its 50-day moving average stands at $112.38, while the 200-day moving average is at $108.01. The stock boasts a market capitalization of $4.67 billion, a price-to-earnings (P/E) ratio of 102.82, a price-to-earnings-growth (PEG) ratio of 6.92, and a beta of 1.47, highlighting its volatility against the market.

When Advanced Energy Industries reported its quarterly earnings data on October 30th, the results indicated $0.98 earnings per share, surpassing the consensus estimate of $0.91 by $0.07. The reported quarterly revenue reached $374.20 million, beating analyst expectations of $372.49 million, although it reflected an 8.7% decline year-over-year from $1.12 EPS in the comparable period last year. Analysts project that Advanced Energy Industries will document 2.52 EPS for the current fiscal year.

Dividend Announcement from Advanced Energy Industries

The company has also recently declared a quarterly dividend, which was disbursed on December 6th. Shareholders on record as of November 25th received a dividend of $0.10. The ex-dividend date was also set for November 25th. This dividend translates to an annualized yield of 0.32% based on a total payout of $0.40, with a payout ratio noted at 35.09%.

Insider Trading Activities at Advanced Energy Industries

In other developments, Director Lanesha Minnix disposed of 1,000 shares of the company on November 19th at an average price of $111.72, totaling a transaction value of $111,720. Post-transaction, the director holds 5,092 shares valued at approximately $568,878.24, marking a 16.41% reduction in their stake. This insider activity is documented in a filing with the Securities and Exchange Commission.

Institutional Investment Trends for Advanced Energy Industries

In recent months, several institutional investors and hedge funds have adjusted their positions in AEIS. Noteworthy is Wealth Enhancement Advisory Services LLC, which increased its holdings by 12.4% in the second quarter. They now own 2,366 shares worth about $257,000, following an additional acquisition of 261 shares. Envestnet Portfolio Solutions Inc. raised its stake by 16.4% in the same quarter, now holding 6,305 shares valued at $686,000 after purchasing 890 shares. Meanwhile, Raymond James & Associates grew their holdings by 10.8%, acquiring 2,355 additional shares for a total of 24,180 shares worth $2,630,000. Nisa Investment Advisors LLC saw an increase of 3.5% and now maintains 6,252 shares, valued at $680,000 after buying 212 shares. Additionally, the Louisiana State Employees Retirement System raised their stake by 1.6%, holding 18,800 shares worth $2,045,000. Institutional investors collectively own 99.67% of the company's shares.

About Advanced Energy Industries

Advanced Energy Industries, Inc. specializes in providing precision power conversion, measurement, and control solutions both domestically and internationally. They focus on plasma power products designed to facilitate innovation in semiconductor and thin film plasma processes such as dry etching and deposition.

Conclusion: Should You Invest $1,000 in Advanced Energy Industries Now?

Before deciding to invest in Advanced Energy Industries, it’s essential to examine the current market consensus. While AEIS maintains a "Moderate Buy" rating among various analysts, top-rated experts suggest looking into five other stocks deemed more promising. Evaluating the overall market trends and individual investment strategies can help determine if AEIS aligns with financial goals.

Advanced, Energy, Industries