Altra Industrial Motion Corp. (AIMC) Shares: Are They Risky Or Cheap?

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Altra Industrial Motion Corp. (NASDAQ:AIMC) finished Friday with an addition of $0.03 to close at $59.75, an upside of 0.05 percent. An average of 366,640 shares of common stock have been traded in the last five days. There was a gain of $0.06 in the past week, and it reached a new high 6 times over the past 12 months. The last 20 days have seen an average of 715,190 shares traded, while the 50-day average volume stands at 1,317,460.

AIMC stock has increased by 1.93% in the last month. The company shares reached their 1-month lowest point of $58.50 on 12/02/22. With the stock rallying to its 52-week high on 10/28/22, shares of the company touched a low of $32.18 and a high of $60.44 in 52 weeks. It has reached a new high 5 times so far this year and achieved 15.86% or $8.18 in price. In spite of this, the price is down -1.14% from the 52-week high.

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Valuation Metrics

Altra Industrial Motion Corp. (AIMC) has a trailing price-to-earnings (P/E) ratio of 239.00. The stock’s beta is 2.22. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.00, the price-to-book (PB) ratio at 2.04, and the price-to-cash flow ratio at 97.24.

The company has a payout ratio of 132.80%. The company’s most recent quarterly dividend payment was $0.09 a share, without any change from last year. Its latest increase dividend $0.01 reported on Tuesday April 26 2022.

Financial Health

The quick ratio of Altra Industrial Motion Corp. for the three months ended September 29 was 1.40, and the current ratio was 2.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.54 and a total debt to equity ratio of 0.55 for the quarter ending September 29. Its gross profit as reported stood at $675.4 million compared to revenue of $1.9 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, Altra Industrial Motion Corp.’s return on assets was 0.40%.

Earnings Surprise

For the three-month period that ended September 29, Altra Industrial Motion Corp. had $1.04 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 $33.6 million in the quarter, while revenues of $26.3 million were shrunk -5.36%. The analyst consensus anticipated Altra Industrial Motion Corp.’s latest quarter earnings to come in at $0.81 per share, but it turned out to be $0.8, a -1.20% surprise. For the quarter, EBITDA amounted to $81.9 million. Shareholders own equity worth $65.17 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Altra Industrial Motion Corp. (AIMC) price momentum. RSI 9-day as of the close on 30 December was 69.10%, suggesting the stock is Neutral, with historical volatility in this time frame at 3.63%.

As of today, AIMC’s price is $59.69 +0.10% or $0.06 from its 5-day moving average. AIMC is currently trading +1.36% higher than its 20-day SMA and +43.94% higher than its 100-day SMA. However, the stock’s current price level is +59.97% above the SMA50 and +47.86% above the SMA200.

The stochastic %K and %D were 70.69% and 69.43%, respectively, and the average true range (ATR) was 0.38. With the 14-day stochastic at 68.35% and the average true range at 0.50, the RSI (14) stands at 72.41%. The stock has reached 0.16 on the 9-day MACD Oscillator while the 14-day reading was at 0.20.

Analyst Ratings

BMO Capital Markets downgraded Altra Industrial Motion Corp. (NASDAQ: AIMC) to a a Market perform rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Altra Industrial Motion Corp. (AIMC) among analysts is Hold. According to current brokerage recommendations, 0 brokerage firms advise that investors sell AIMC, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 1 others rate it as a “buy”.

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

Analysts predict a range of price targets between $50.00 and $62.00, with a median target of $62.00. Taking a look at these predictions, the average price target given by analysts for Altra Industrial Motion Corp. (AIMC) stock is $59.00.

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