AU Optronics Corp. (NYSE:AUO) has been downgraded by CLSA on October 31 which now rates the stock as Sell compared with Outperform rating suggested in the past. Analysts at CLSA, shed their negative views on July 27 by lifting it fromUnderperform to Outperform. The stock lost favor of Morgan Stanley analysts who expressed their lack of confidence in it using a downgrade from Overweight to Equal-Weight on June 18.
AU Optronics Corp. (AUO) hit an intraday high Tuesday at $3.55. The shares finished at $3.52, after trading as low as $3.35 earlier in the session. It dropped -3.56% in recent trade and currently has a stock-market value of $3.52B. Trading activity significantly improved as the volume at ready counter increased to 3,801,277 shares versus 1,282,275 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,158,676 shares. The stock is now -1.4% above against its bear-market low of $3.57 on February 12, 2019. It has retreated -43.75% since it’s 52-week high of $5.06 reached in February. Now the market price is down -24.14% on the year and down -10.66% YTD.
AUO’s 50 day simple moving average (SMA 50) price is $4 and its 200-day simple moving average (SMA 200) price is $4.13. The company’s stock currently has a total float of 765.31M shares. Its weekly volatility is hovering around 3.19% and felt 2.54% volatility in price over a month. On the upside, the share price will test short term resistance at around $3.6. On a downside, the stock is likely to find some support, which begins at $3.4. The failure to get near-term support could push it to $3.27.
Wall Street’s most bullish AU Optronics Corp. (NYSE:AUO) analysts are predicting the share price to blow past $4.12 per share during the next 12 months. The current median share price forecast by them is $3.62, suggesting that the stock could increase 2.84% in that time frame. The average price target of $3.55 calls for a nearly 0.85% increase in the stock price.
When looking at valuations, AU Optronics Corp. (AUO) has a cheap P/E of 7.6x as compared to industry average of 19.03x. Also, it is trading at rather inexpensive levels at just over 0.52x price/book and 0.35x price/sales. Compared to others, AU Optronics Corp. is in a different league with regards to profitability, having net margins of 4.5%. To put some perspective around this, the industry’s average net margin is 6.24%. AUO’s ROE is 6.8%, which is also considerably better than the industry’s ROE of 4.97%. It’s also very liquid in the near term, with a current ratio of 1.2. The stock has a debt/capital of 0.44.
Shares of AU Optronics Corp. (AUO) have dropped -11.8% since the company’s last earnings report. Over the past 6 fiscal quarters, AU Optronics Corp. (NYSE:AUO) has topped consensus earnings estimates in 4 quarters (33%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. Revenue for the recent quarter stood at $2.63 billion, down -9% on last year and below the $2.63 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.21 billion to $2.21 billion, which should be compared with $0 generated last year. EPS is seen in a range of -$1.00E-02 to -$0.01, against the 0 reported a year ago.