Sierra Wireless Inc. [SWIR] Revenue clocked in at $502.40 million, up 51.20% YTD: What’s Next?

Sierra Wireless Inc. [NASDAQ: SWIR] gained 28.81% or 3.23 points to close at $14.44 with a heavy trading volume of 2801604 shares. The company report on November 18, 2020 that Sierra Wireless Completes Divestiture of Automotive Embedded Module Product Line.

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Sierra Wireless (NASDAQ: SWIR) (TSX: SW) (the “Company” or “Sierra Wireless”), the leading IoT solutions provider that combines devices, network services and software to unlock value in the connected economy, announced it has completed the previously announced sale of its Shenzhen, China-based automotive embedded module product line to Rolling Wireless (H.K.) Limited (“Rolling Wireless”) for US$165 million in cash. The sale of the automotive product line includes approximately US$19 million of cash and is subject to normal working capital adjustments.

“This divestiture of the Automotive product line enables Sierra Wireless to strengthen our focus and success in investment in our IoT Solutions that deliver high-value recurring revenue,” said Kent Thexton, President and CEO of Sierra Wireless. “Completing the transaction also gives us financial strength as we expand our position in the growing IoT solutions market as well as broaden our portfolio of new 5G modules and gateways for the Enterprise and Mobile Broadband markets.”.

It opened the trading session at $12.00, the shares rose to $14.80 and dropped to $12.00, the range by which the price of stock traded the whole day. The daily chart for SWIR points out that the company has recorded 64.84% gains over the past six months. However, it is still -235.03% lower than its most recent low trading price.

If we look at the average trading volume of 183.76K shares, SWIR reached to a volume of 2801604 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Sierra Wireless Inc. [SWIR]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SWIR shares is $13.67 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SWIR stock is a recommendation set at 2.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Colliers Securities have made an estimate for Sierra Wireless Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 25, 2020. The new note on the price target was released on November 06, 2019, representing the official price target for Sierra Wireless Inc. stock. On February 14, 2019, analysts decreased their price target for SWIR shares from 25 to 12.

The Average True Range (ATR) for Sierra Wireless Inc. is set at 0.69, with the Price to Sales ratio for SWIR stock in the period of the last 12 months amounting to 1.03. The Price to Book ratio for the last quarter was 1.53, with the Price to Cash per share for the same quarter was set at 1.77.

Trading performance analysis for SWIR stock

Sierra Wireless Inc. [SWIR] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 30.92. With this latest performance, SWIR shares gained by 28.70% in over the last four-week period, additionally plugging by 64.84% over the last 6 months – not to mention a rise of 69.28% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SWIR stock in for the last two-week period is set at 76.21, with the RSI for the last a single of trading hit 81.97, and the three-weeks RSI is set at 70.71 for Sierra Wireless Inc. [SWIR]. The present Moving Average for the last 50 days of trading for this stock 11.18, while it was recorded at 11.88 for the last single week of trading, and 9.70 for the last 200 days.

Sierra Wireless Inc. [SWIR]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Sierra Wireless Inc. [SWIR] shares currently have an operating margin of -3.92 and a Gross Margin at +27.90. Sierra Wireless Inc.’s Net Margin is presently recorded at -9.89.

Return on Total Capital for SWIR is now -6.49, given the latest momentum, and Return on Invested Capital for the company is -16.51. Return on Equity for this stock declined to -17.00, with Return on Assets sitting at -10.62. When it comes to the capital structure of this company, Sierra Wireless Inc. [SWIR] has a Total Debt to Total Equity ratio set at 8.31. Additionally, SWIR Total Debt to Total Capital is recorded at 7.67, with Total Debt to Total Assets ending up at 4.95. Long-Term Debt to Equity for the company is recorded at 6.65, with the Long-Term Debt to Total Capital now at 6.14.

Reflecting on the efficiency of the workforce at the company, Sierra Wireless Inc. [SWIR] managed to generate an average of -$73,122 per employee. Receivables Turnover for the company is 4.68 with a Total Asset Turnover recorded at a value of 1.07.Sierra Wireless Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.40 and a Current Ratio set at 1.50.

Sierra Wireless Inc. [SWIR]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Sierra Wireless Inc. posted -0.08/share EPS, while the average EPS was predicted by analysts to be reported at -0.05/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -60.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SWIR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Sierra Wireless Inc. go to 12.00%.

An analysis of insider ownership at Sierra Wireless Inc. [SWIR]

There are presently around $239 million, or 47.40% of SWIR stock, in the hands of institutional investors. The top three institutional holders of SWIR stocks are: TRIGRAN INVESTMENTS, INC. with ownership of 5,127,014, which is approximately 6.354% of the company’s market cap and around 6.60% of the total institutional ownership; LION POINT CAPITAL, LP, holding 2,144,396 shares of the stock with an approximate value of $30.96 million in SWIR stocks shares; and POLAR ASSET MANAGEMENT PARTNERS INC., currently with $28.94 million in SWIR stock with ownership of nearly 16.414% of the company’s market capitalization.

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Positions in Sierra Wireless Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 25 institutional holders increased their position in Sierra Wireless Inc. [NASDAQ:SWIR] by around 1,873,094 shares. Additionally, 39 investors decreased positions by around 1,553,914 shares, while 28 investors held positions by with 13,098,289 shares. The mentioned changes placed institutional holdings at 16,525,297 shares, according to the latest SEC report filing. SWIR stock had 11 new institutional investments in for a total of 810,140 shares, while 13 institutional investors sold positions of 357,565 shares during the same period.

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