Vicor (NASDAQ:VICR) Shares Down 10.1% – Here’s What Happened

Vicor Corporation (NASDAQ:VICR) shares fell 10.1% on Tuesday . The company traded as low as $203.09 and last traded at $207.6050. 442,353 shares were traded during trading, a decline of 47% from the average session volume of 833,248 shares. The stock had previously closed at $230.99.

Vicor News Roundup

Here are the key news stories impacting Vicor this week:

• Positive Sentiment: Vicor beat Q2 expectations, reporting $1.04 EPS versus consensus around $0.62-$0.65 and $143.4 million in revenue, also ahead of estimates. The company said AI-related demand helped drive a record $380 million backlog, up sharply from the prior quarter, which supports future sales visibility. Article Title
• Positive Sentiment: Management highlighted rising demand from high-performance computing, AI OEMs, industrial, aerospace and defense customers, and said it is preparing for a possible second chip fab to expand capacity. That suggests management sees sustained demand beyond the current quarter. Article Title
• Positive Sentiment: The quarter also showed improved profitability and cash generation, with net income of $49.8 million and cash from operations of $34.0 million, while cash rose to about $453.6 million. Analysts also reiterated bullish views, including a Buy rating and a $320 target from Needham. Article Title
• Neutral Sentiment: Vicor’s operating expenses increased and gross margin was below last year’s comparison, but the year-ago period included a large patent settlement, making the comparison less meaningful. Article Title
• Negative Sentiment: Despite the earnings beat, the stock faced pressure because the company’s Q3 revenue guidance came in well below Wall Street expectations, raising concerns that near-term growth may slow after this quarter’s strong results. Article Title

Wall Street Analyst Weigh In

Several equities research analysts have commented on VICR shares. Wall Street Zen lowered shares of Vicor from a “buy” rating to a “hold” rating in a research note on Saturday, April 25th. Zacks Research downgraded Vicor from a “strong-buy” rating to a “hold” rating in a research note on Thursday, July 2nd. Craig Hallum upped their target price on Vicor to $450.00 and gave the company a “buy” rating in a report on Monday, June 22nd. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Vicor in a report on Monday, June 1st. Finally, Needham & Company LLC decreased their price target on Vicor from $400.00 to $320.00 and set a “buy” rating for the company in a research report on Tuesday. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $381.67.

Vicor Price Performance

The company has a 50 day simple moving average of $294.50 and a 200-day simple moving average of $223.46. The stock has a market capitalization of $9.91 billion, a P/E ratio of 69.66 and a beta of 2.33.

Vicor (NASDAQ:VICR) last posted its quarterly earnings results on Tuesday, July 21st. The electronics maker reported $1.04 earnings per share for the quarter, topping the consensus estimate of $0.65 by $0.39. Vicor had a return on equity of 19.83% and a net margin of 30.65%.The company had revenue of $143.35 million during the quarter, compared to the consensus estimate of $138.37 million. During the same quarter in the prior year, the company earned $0.91 EPS. The firm’s quarterly revenue was up 49.3% compared to the same quarter last year. As a group, equities analysts forecast that Vicor Corporation will post 2.94 earnings per share for the current fiscal year.

Insider Buying and Selling at Vicor

In other news, CEO Patrizio Vinciarelli sold 700 shares of Vicor stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $302.40, for a total value of $211,680.00. Following the completion of the transaction, the chief executive officer owned 8,347,390 shares in the company, valued at $2,524,250,736. This trade represents a 0.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO James F. Schmidt sold 1,000 shares of the business’s stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $331.68, for a total transaction of $331,680.00. Following the completion of the sale, the chief financial officer directly owned 1,000 shares in the company, valued at approximately $331,680. This trade represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 384,682 shares of company stock valued at $121,820,633 in the last three months. 28.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of VICR. GoalVest Advisory LLC grew its position in Vicor by 23.5% during the second quarter. GoalVest Advisory LLC now owns 321 shares of the electronics maker’s stock valued at $122,000 after acquiring an additional 61 shares during the last quarter. Carolina Wealth Advisors LLC lifted its holdings in shares of Vicor by 70.9% in the 2nd 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. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its holdings in shares of Vicor by 1.2% in the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 5,692 shares of the electronics maker’s stock worth $916,000 after acquiring an additional 68 shares during the last quarter. ProShare Advisors LLC boosted its stake in shares of Vicor by 1.7% in the 4th quarter. ProShare Advisors LLC now owns 4,469 shares of the electronics maker’s stock valued at $490,000 after purchasing an additional 74 shares in the last quarter. Finally, Bouvel Investment Partners LLC boosted its stake in shares of Vicor by 0.4% in the 4th quarter. Bouvel Investment Partners LLC now owns 24,183 shares of the electronics maker’s stock valued at $2,650,000 after purchasing an additional 85 shares in the last quarter. 47.45% of the stock is owned by institutional investors.

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.