Technicals Say Avantor Inc. (AVTR) Is A Hold

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Avantor Inc. (NYSE:AVTR) finished Thursday with a subtraction of -$0.33 to close at $20.95, a downside of -1.55 percent. An average of 6,808,640 shares of common stock have been traded in the last five days. There was a fall of -$2.23 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 7,117,835 shares traded, while the 50-day average volume stands at 6,628,572.

AVTR stock has decreased by -19.55% in the last month. The company shares reached their 1-month lowest point of $20.78 on 09/22/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $21.27 and a high of $44.37 in 52 weeks. It has reached a new high 1 time so far this year and lost -50.28% or -$21.19 in price. In spite of this, the price is down -52.78% from the 52-week high.


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Insider Transactions

123 days have passed since Avantor Inc. (AVTR) last reported insider trading activity. Vanderhaegen Frederic, who is EVP, Americas & Europe, most recently acquired $39,000 shares at $31.61 per share on May 23. In this transaction, the insider spent $1,232,790. EVP, Biopharma Production, Brophy Gerard, disposed of 19,603 shares at a price of $31.27 on May 20. The insider now owns more than $612,986 worth of shares. Prior to that, EVP, Biopharma Production Brophy Gerard went on to Sale 2,027 shares at $34.47 each on Mar 01. An amount of $69,871 was transacted.

Valuation Metrics

Avantor Inc. (AVTR) has a trailing price-to-earnings (P/E) ratio of 23.81. The stock’s beta is 1.35. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.92, the price-to-book (PB) ratio at 3.02, and the price-to-cash flow ratio at 17.99.

Financial Health

The quick ratio of Avantor Inc. for the three months ended June 29 was 1.00, and the current ratio was 1.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.41 and a total debt to equity ratio of 1.46 for the quarter ending June 29. Its gross profit as reported stood at $2.5 billion compared to revenue of $7.39 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Avantor Inc.’s return on assets was 4.30%.

Earnings Surprise

For the three-month period that ended June 29, Avantor Inc. had $6.29 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $179.3 million in the quarter, while revenues of $174.3 million were grew 21.03%. The analyst consensus anticipated Avantor Inc.’s latest quarter earnings to come in at $0.38 per share, but it turned out to be $0.37, a -2.60% surprise. For the quarter, EBITDA amounted to $389.4 million. Shareholders own equity worth $674.03 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Avantor Inc. (AVTR) price momentum. RSI 9-day as of the close on 22 September was 14.84%, suggesting the stock is oversold, with historical volatility in this time frame at 37.74%.

As of today, AVTR’s price is $21.75 -9.62% or -$2.23 from its 5-day moving average. AVTR is currently trading -19.45% lower than its 20-day SMA and -34.28% lower than its 100-day SMA. However, the stock’s current price level is -27.05% below the SMA50 and -45.06% below the SMA200.

The stochastic %K and %D were 2.49% and 4.52%, respectively, and the average true range (ATR) was 0.75. With the 14-day stochastic at 3.10% and the average true range at 0.77, the RSI (14) stands at 20.15%. The stock has reached -1.46 on the 9-day MACD Oscillator while the 14-day reading was at -2.31.

Analyst Ratings

Cowen downgraded Avantor Inc. (NYSE: AVTR) to a a Market perform rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Avantor Inc. (AVTR) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell AVTR, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 12 others rate it as a “buy”.

What is AVTR’s price target for the next 12 months?

Analysts predict a range of price targets between $28.00 and $42.00, with a median target of $35.00. Taking a look at these predictions, the average price target given by analysts for Avantor Inc. (AVTR) stock is $34.65.

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