GSI Technology Inc (GSIT) Shares Rise Despite Market Challenges

The stock price of GSI Technology Inc (NASDAQ: GSIT) has surged by 30.12 when compared to previous closing price of 3.42, but the company has seen a 21.92% gain in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-07 that GSI Technology, Inc. is one of our few tech picks in which we have a lot of belief, but is held speculatively and in small quantities. Its price has risen substantially of late, displaying meme-like qualities. Liquidity is beginning to creep up, but it’s nothing like the last time it got hyped. There isn’t any major news, and the story of GSI Technology is known. We would have expected it to already move correlated to the general enthusiasm around AI and computing.

Is It Worth Investing in GSI Technology Inc (NASDAQ: GSIT) Right Now?

GSIT has 36-month beta value of 1.03. Analysts have mixed views on the stock, with 0 analysts rating it as a “buy,” 0 as “overweight,” 1 as “hold,” and 0 as “sell.”

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The public float for GSIT is 17.70M, and currently, short sellers hold a 5.18% ratio of that float. The average trading volume of GSIT on April 02, 2024 was 403.71K shares.

GSIT’s Market Performance

GSIT’s stock has seen a 21.92% increase for the week, with a 23.61% rise in the past month and a 68.56% gain in the past quarter. The volatility ratio for the week is 8.03%, and the volatility levels for the past 30 days are at 13.40% for GSI Technology Inc The simple moving average for the last 20 days is 15.99% for GSIT stock, with a simple moving average of 33.40% for the last 200 days.

Analysts’ Opinion of GSIT

Robert W. Baird, on the other hand, stated in their research note that they expect to see GSIT reach a price target of $6, previously predicting the price at $5. The rating they have provided for GSIT stocks is “Outperform” according to the report published on April 12th, 2010.

Needham gave a rating of “Buy” to GSIT, setting the target price at $4 in the report published on February 06th of the previous year.

GSIT Trading at 46.99% from the 50-Day Moving Average

After a stumble in the market that brought GSIT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -54.59% of loss for the given period.

Volatility was left at 13.40%, however, over the last 30 days, the volatility rate increased by 8.03%, as shares surge +9.64% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +91.36% upper at present.

During the last 5 trading sessions, GSIT rose by +15.34%, which changed the moving average for the period of 200-days by -46.71% in comparison to the 20-day moving average, which settled at $3.86. In addition, GSI Technology Inc saw 68.56% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at GSIT starting from Yau Robert, who sale 12,500 shares at the price of $3.02 back on Aug 30 ’23. After this action, Yau Robert now owns 927,439 shares of GSI Technology Inc, valued at $37,811 using the latest closing price.

Yau Robert, the VP, Engin., Sect. & Director of GSI Technology Inc, sale 15,263 shares at $3.27 during a trade that took place back on Aug 29 ’23, which means that Yau Robert is holding 939,939 shares at $49,855 based on the most recent closing price.

Stock Fundamentals for GSIT

Current profitability levels for the company are sitting at:

  • -0.9 for the present operating margin
  • 0.55 for the gross margin

The net margin for GSI Technology Inc stands at -0.9. The total capital return value is set at -0.49. Equity return is now at value -41.80, with -34.85 for asset returns.

Based on GSI Technology Inc (GSIT), the company’s capital structure generated 0.02 points at debt to capital in total, while cash flow to debt ratio is standing at -16.67. The debt to equity ratio resting at 0.02. The interest coverage ratio of the stock is 195.93.

Currently, EBITDA for the company is -15.81 million with net debt to EBITDA at 1.06. When we switch over and look at the enterprise to sales, we see a ratio of 4.3. The receivables turnover for the company is 8.83for trailing twelve months and the total asset turnover is 0.45. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.75.

Conclusion

To put it simply, GSI Technology Inc (GSIT) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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