why iRobot Corporation [IRBT] is a Good Choice for Investors After New Price Target of $56.00

iRobot Corporation [NASDAQ: IRBT] traded at a high on 08/05/22, posting a 19.10 gain after which it closed the day’ session at $59.54. The company report on August 5, 2022 that iRobot Reports Second-Quarter 2022 Financial Results.

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iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced its financial results for the second quarter ended July 2, 2022. Additionally, in a separate release, iRobot announced it has entered into a definitive agreement to be acquired by Amazon.com, Inc. (NASDAQ: AMZN). Under the terms of the agreement, Amazon will acquire all the outstanding shares of iRobot common stock for $61.00 per share in cash for a transaction value of approximately $1.7 billion, including iRobot’s net debt.

The results of the trading session contributed to over 14797458 shares changing hands. Over the past one week, the price volatility of iRobot Corporation stands at 4.37% while the volatility over the past one month is 4.38%.

The market cap for IRBT stock reached $1.36 billion, with 27.05 million shares outstanding and 26.59 million shares in the current float. Compared to the average trading volume of 420.28K shares, IRBT reached a trading volume of 14797458 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about iRobot Corporation [IRBT]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for IRBT shares is $56.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on IRBT stock is a recommendation set at 3.20. 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.

JP Morgan have made an estimate for iRobot Corporation shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on May 06, 2022. The new note on the price target was released on March 24, 2022, representing the official price target for iRobot Corporation stock. Previously, the target price had yet another raise to $103, while JP Morgan analysts kept a Neutral rating on IRBT stock. On February 11, 2021, analysts increased their price target for IRBT shares from 101 to 166.

The Average True Range (ATR) for iRobot Corporation is set at 2.76, with the Price to Sales ratio for IRBT stock in the period of the last 12 months amounting to 0.87. The Price to Book ratio for the last quarter was 2.32, with the Price to Cash per share for the same quarter was set at 4.98.

How has IRBT stock performed recently?

iRobot Corporation [IRBT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 29.41. With this latest performance, IRBT shares gained by 48.00% in over the last four-week period, additionally sinking by -3.20% over the last 6 months – not to mention a drop of -31.77% 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 IRBT stock in for the last two-week period is set at 79.33, with the RSI for the last a single of trading hit 86.89, and the three-weeks RSI is set at 72.38 for iRobot Corporation [IRBT]. The present Moving Average for the last 50 days of trading for this stock 42.83, while it was recorded at 50.39 for the last single week of trading, and 59.98 for the last 200 days.

iRobot Corporation [IRBT]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and iRobot Corporation [IRBT] shares currently have an operating margin of +0.65 and a Gross Margin at +37.63. iRobot Corporation’s Net Margin is presently recorded at +1.95.

Return on Equity for this stock inclined to 4.00, with Return on Assets sitting at 2.56.

iRobot Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 2.30.

Earnings analysis for iRobot Corporation [IRBT]

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 IRBT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for iRobot Corporation go to 34.40%.

Insider trade positions for iRobot Corporation [IRBT]

There are presently around $1,418 million, or 90.80% of IRBT stock, in the hands of institutional investors. The top three institutional holders of IRBT stocks are: BLACKROCK INC. with ownership of 4,861,539, which is approximately -3.093% of the company’s market cap and around 2.50% of the total institutional ownership; VANGUARD GROUP INC, holding 2,939,954 shares of the stock with an approximate value of $175.04 million in IRBT stocks shares; and PRIMECAP MANAGEMENT CO/CA/, currently with $140.45 million in IRBT stock with ownership of nearly -2.565% of the company’s market capitalization.

Positions in iRobot Corporation stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 103 institutional holders increased their position in iRobot Corporation [NASDAQ:IRBT] by around 1,154,104 shares. Additionally, 125 investors decreased positions by around 2,359,128 shares, while 53 investors held positions by with 20,306,367 shares. The mentioned changes placed institutional holdings at 23,819,599 shares, according to the latest SEC report filing. IRBT stock had 33 new institutional investments in for a total of 312,575 shares, while 46 institutional investors sold positions of 294,368 shares during the same period.


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