AudioCodes Ltd. (AUDC) Stock: Here’s Why It’s Gaining


AudioCodes Ltd. (AUDC) is making a move up in the market today. The company, one that is focused on the technology space, is presently trading at $21.96 after a move up of 5.53% so far in today’s session. In terms of tech stocks, there are several factors that have the ability to cause price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent trending headlines associated with AUDC:

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Oct-29-19 03:13PM Stock Market Eases Despite Solid Earnings; These Two Drug Giants Buoy The Dow
03:30AM AudioCodes Reports Third Quarter 2019 Results
Oct-20-19 08:24AM What Kind Of Shareholders Own AudioCodes Ltd. (NASDAQ:AUDC)?
Oct-07-19 09:10AM AudioCodes Introduces Room Experience Solutions in Collaboration With Dolby
09:00AM AudioCodes Announces Third Quarter 2019 Reporting Date

Nonetheless, when making an investing decision, investors should look at far more than news, especially in the ever changing technology sector. Here’s what’s happening with AudioCodes Ltd..

Recent Movement From AUDC

Although a move toward the top in a single session, like the move that we’re seeing from AudioCodes Ltd. may cause excitement in some investors, a single session move alone shouldn’t be the basis of a decision to, or not to, invest in a company. It is generally important to take a look at trends further out than a single trading day. As it relates to AUDC, here are the movements that investors have seen:

  • Past 7 Days – Throughout the past 7 days, AUDC has generated a change in price that amounts to 18.64%.
  • Past 30 Days – The monthly ROI from AudioCodes Ltd. comes to 19.35%.
  • Quarterly – Over the past quarter, the company has generated a ROI that works out to 17.25%
  • Bi-Annually – Over the previous six months, we have seen a change that equates to 48.88% from the stock.
  • Year To Date – Since the open of this year AUDC has resulted in a return of 122.27%.
  • Annually – Finally, in the past year, we have seen performance of 84.54% out of AUDC. Over this period of time, the stock has sold at a high of -2.40% and a low of 144.00%.

Ratios Of Note

Digging into a few ratios having to do with a company can give prospective investors a look of how dangerous and/or rewarding a pick might be. Here are some of the most important ratios to think about when digging into AUDC.

Short Ratio – The short ratio is a measure of short interest. As the short ratio goes higher, it means that more investors have a belief that the stock is going to fall. Throughout the sector, strong tech stocks tend to have a lower short ratio. However, we also see a lot of short squeezes in the industry. Nonetheless, in relation to AudioCodes Ltd., the stock’s short ratio clocks in at 0.71.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure the company’s abilities to cover its debts when they mature with only current assets or quick assets. Because in tech, several companies rely heavily on continued support from investors as they work to bring new technologies to market, these ratios can seem upsetting. However, some gems in the technology space come with positive current and quick ratios. In terms of AUDC, the quick and current ratios work out to 1.30 and 1.70 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets that are owned by the company. In this case, the book to share value ratio works out to 3.25.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value ratio comes to 2.08.

What Institutions And Insiders Think Of AudioCodes Ltd.

An interesting fact I have learned so far in my short period here is that good investors tend to follow big money players. That is to say, investors that want to keep the risk down will keep an eye on investments made by institutional investors and insiders of the company. With that said, is big money flowing in regard to AUDC? Here’s what’s happening:

Institutions own 34.70% of the company. Institutional interest has moved by 0.67% over the past three months. When it comes to insiders, those who are close to the company currently own 40.50% percent of AUDC shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

How Analysts Feel About AudioCodes Ltd.

Although it’s rarely a smart idea to unknowingly follow the thoughts of analysts, it is a smart idea to consider their analysis in order to validate your own due diligence when it comes to making an investment decision in the tech space. Below are the recent moves that we’ve seen from analysts as it relates to AUDC.

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Jul-25-18 Reiterated Needham Buy $9 → $10
Jan-25-18 Reiterated Needham Buy $8.50 → $9
Oct-26-17 Reiterated Needham Buy $8 → $8.50
Feb-01-17 Reiterated Needham Buy $6 → $8
Feb-01-17 Downgrade Northland Capital Outperform → Market Perform

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.95. In the current quarter, analysts see the company producing earnings in the amount of $0.21. Over the last 5 years, AUDC has generated revenue in the amount of $5.10% with earnings coming in at 32.90%. On a quarter over quarter basis, earnings have seen movement of 93.70% and revenue has seen movement of 13.80%.

Float Information

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 29.01M shares of AudioCodes Ltd. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, AUDC has a float of 20.53M.

I also like to dig into the short float. Think about it, if a large percentage of the float available for trading is shorted, the overall feeling in the market is that the equity is going to fall. When it comes to AUDC, the percentage of the float that is sold short is 0.70%. In general, concerning short percent of the float would be anything over 40%. In my research, I have calculated that any short percent of the float over 26% is likely a risky play.

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