Analysis of AMSC Put Selling Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy AMSC?
Source: NASDAQ.COM
- Options Selling Risk: Selling puts on AMSC does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, and unless the stock falls to $18, the only benefit is a 14% annualized return from the premium.
- Exercise Condition Analysis: The put seller will only have a cost basis of $15.60 per share if AMSC's stock drops 39.6% to $18, meaning the profit is solely from the premium collected, highlighting the asymmetry of risk and reward in options trading.
- Historical Volatility Reference: AMSC's trailing twelve-month volatility is calculated at 92%, which, when combined with fundamental analysis, can assist investors in determining whether selling the January 2027 put at the $18 strike is a worthwhile strategy under current market conditions.
- Market Price Comparison: With AMSC's current stock price at $30.06, the strategy of selling puts must consider the relationship between market price and strike price to evaluate potential risks and returns, ensuring sound investment decisions.
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Analyst Views on AMSC
Wall Street analysts forecast AMSC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMSC is 58.50 USD with a low forecast of 52.00 USD and a high forecast of 67.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 25.950
Low
52.00
Averages
58.50
High
67.00
Current: 25.950
Low
52.00
Averages
58.50
High
67.00
About AMSC
American Superconductor Corporation is a provider of megawatt-scale power resiliency solutions. The Company's solutions include Gridtec, Marinetec and Windtec. The Company, through its Gridtec solutions, provides engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. The Company, through its Marinetec solutions, provides ship protection and is developing propulsion and power management solutions designed to help fleets increase system efficiencies, enhance power quality and boost operational safety. The Company, through its Windtec solutions, provides wind turbine electronic controls and systems, designs and engineering services. The Company's segments include Grid and Wind. Its products include Utility Voltage Solutions, Turbine Designs, Renewable Interconnectivity Solutions, Power Converters, Generators & Drivetrains, Utility & Industrial Resilience and Modernization Solutions, and Electric Control Systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sustained Profitability: The company achieved its sixth consecutive profitable quarter with a gross margin of 31%, up from 27% in the prior year, indicating improvements in cost management and operational efficiency.
- Optimistic Outlook: Management expects Q4 revenues to exceed $80 million, with net income projected to surpass $3 million and non-GAAP net income expected to exceed $8 million, reflecting strong confidence in future growth prospects.
- Diversified Revenue Structure: The grid business accounted for 85% of total revenues, while wind business grew by 25%, with traditional and renewable energy contributing approximately one-third and one-quarter respectively, showcasing the company's broad market presence and growth potential.
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- Sales Growth: The company achieved quarterly sales of $1.047 billion, exceeding the consensus estimate of $1.033 billion, demonstrating robust performance amid strong market demand.
- Stock Surge: Align's shares jumped 10.4% in pre-market trading to $178.13, reflecting a positive investor reaction to the financial results, which may attract more investor interest.
- Increased Market Confidence: This earnings beat not only enhances Align's market image but also potentially supports its future investment and expansion plans, further solidifying its leadership position in the industry.
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- Significant Revenue Growth: American Superconductor Corp. reported third-quarter fiscal 2025 revenue of $74.5 million, a 21% year-over-year increase driven by organic growth and the acquisition of Brazilian transformer manufacturer Comtrafo, indicating strong market performance.
- Substantial Net Income Increase: The company posted a net income of $117.8 million, or $2.68 per share, up from $2.5 million and $0.07 per share in the same quarter last year, reflecting a significant improvement in profitability.
- Tax Benefit Boosts Earnings: The net income for the third quarter included a $113.1 million tax benefit from the release of a valuation allowance on a deferred tax asset, which significantly enhanced the company's financial performance and bolstered future investment confidence.
- Strong Cash Position: As of December 31, 2025, the company reported cash, cash equivalents, and restricted cash totaling $147.1 million, up from $85.4 million on March 31, 2025, indicating robust financial management and liquidity.
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American Superconductor Q3 Earnings Exceed Expectations
- Earnings Beat: American Superconductor reported a Q3 GAAP EPS of $2.62, surpassing expectations by $2.55, indicating strong profitability that boosts investor confidence.
- Significant Revenue Growth: The company achieved Q3 revenues of $74.53 million, a 21.4% year-over-year increase, exceeding market expectations by $5.5 million, demonstrating sustained growth in market demand and product sales, enhancing its competitive position.
- Optimistic Future Outlook: AMSC anticipates Q1 2026 revenues will exceed $80 million, with net income expected to surpass $3 million, or $0.07 per share, reflecting confidence in future performance that may attract more investor interest.
- Non-GAAP Income Expectations: The company expects its non-GAAP net income for Q4 FY2025 to exceed $8 million, or $0.17 per share, indicating improvements in cost control and operational efficiency, further enhancing its financial health.
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AMSC Plans to Release Q3 FY2025 Financial Results
- Earnings Release Schedule: AMSC plans to release its third quarter fiscal year 2025 financial results after market close on February 4, 2026, showcasing the company's ongoing development in power resiliency solutions.
- Investor Conference Call: Management will hold a conference call on February 5, 2026, at 10:00 a.m. Eastern Time to discuss recent achievements, financial results, and future business outlook, enhancing communication with investors.
- Live Webcast Access: Investors can listen to the live or archived conference call via the 'Investors' section of the company's website, increasing transparency and meeting market demand for information.
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Analysis of AMSC Put Selling Strategy
- Options Selling Risk: Selling puts on AMSC does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, and unless the stock falls to $18, the only benefit is a 14% annualized return from the premium.
- Exercise Condition Analysis: The put seller will only have a cost basis of $15.60 per share if AMSC's stock drops 39.6% to $18, meaning the profit is solely from the premium collected, highlighting the asymmetry of risk and reward in options trading.
- Historical Volatility Reference: AMSC's trailing twelve-month volatility is calculated at 92%, which, when combined with fundamental analysis, can assist investors in determining whether selling the January 2027 put at the $18 strike is a worthwhile strategy under current market conditions.
- Market Price Comparison: With AMSC's current stock price at $30.06, the strategy of selling puts must consider the relationship between market price and strike price to evaluate potential risks and returns, ensuring sound investment decisions.
See More
American Superconductor Exceeds Q3 2025 Revenue Guidance with Strategic Growth
- Significant Revenue Growth: American Superconductor reported over $74 million in total revenue for Q3 2025, exceeding guidance and reflecting over 20% year-over-year growth driven by organic expansion and contributions from the Comtrafo acquisition, highlighting strong performance in both grid and wind markets.
- Sustained Profitability: The company achieved its sixth consecutive profitable quarter with a gross margin of 31%, up from 27% in the prior year, indicating improvements in cost management and operational efficiency.
- Optimistic Outlook: Management expects Q4 revenues to exceed $80 million, with net income projected to surpass $3 million and non-GAAP net income expected to exceed $8 million, reflecting strong confidence in future growth prospects.
- Diversified Revenue Structure: The grid business accounted for 85% of total revenues, while wind business grew by 25%, with traditional and renewable energy contributing approximately one-third and one-quarter respectively, showcasing the company's broad market presence and growth potential.
See More
Align Technology Reports Strong Q4 Earnings Beat
- Earnings Beat: Align Technology reported Q4 earnings of $3.29 per share, surpassing analyst expectations of $2.97, indicating a significant improvement in profitability and boosting market confidence in future growth.
- Sales Growth: The company achieved quarterly sales of $1.047 billion, exceeding the consensus estimate of $1.033 billion, demonstrating robust performance amid strong market demand.
- Stock Surge: Align's shares jumped 10.4% in pre-market trading to $178.13, reflecting a positive investor reaction to the financial results, which may attract more investor interest.
- Increased Market Confidence: This earnings beat not only enhances Align's market image but also potentially supports its future investment and expansion plans, further solidifying its leadership position in the industry.
See More
American Superconductor Corp. Stock Surges 22.65% in After-Hours Trading
- Significant Revenue Growth: American Superconductor Corp. reported third-quarter fiscal 2025 revenue of $74.5 million, a 21% year-over-year increase driven by organic growth and the acquisition of Brazilian transformer manufacturer Comtrafo, indicating strong market performance.
- Substantial Net Income Increase: The company posted a net income of $117.8 million, or $2.68 per share, up from $2.5 million and $0.07 per share in the same quarter last year, reflecting a significant improvement in profitability.
- Tax Benefit Boosts Earnings: The net income for the third quarter included a $113.1 million tax benefit from the release of a valuation allowance on a deferred tax asset, which significantly enhanced the company's financial performance and bolstered future investment confidence.
- Strong Cash Position: As of December 31, 2025, the company reported cash, cash equivalents, and restricted cash totaling $147.1 million, up from $85.4 million on March 31, 2025, indicating robust financial management and liquidity.
See More
American Superconductor Q3 Earnings Exceed Expectations
- Earnings Beat: American Superconductor reported a Q3 GAAP EPS of $2.62, surpassing expectations by $2.55, indicating strong profitability that boosts investor confidence.
- Significant Revenue Growth: The company achieved Q3 revenues of $74.53 million, a 21.4% year-over-year increase, exceeding market expectations by $5.5 million, demonstrating sustained growth in market demand and product sales, enhancing its competitive position.
- Optimistic Future Outlook: AMSC anticipates Q1 2026 revenues will exceed $80 million, with net income expected to surpass $3 million, or $0.07 per share, reflecting confidence in future performance that may attract more investor interest.
- Non-GAAP Income Expectations: The company expects its non-GAAP net income for Q4 FY2025 to exceed $8 million, or $0.17 per share, indicating improvements in cost control and operational efficiency, further enhancing its financial health.
See More
AMSC Plans to Release Q3 FY2025 Financial Results
- Earnings Release Schedule: AMSC plans to release its third quarter fiscal year 2025 financial results after market close on February 4, 2026, showcasing the company's ongoing development in power resiliency solutions.
- Investor Conference Call: Management will hold a conference call on February 5, 2026, at 10:00 a.m. Eastern Time to discuss recent achievements, financial results, and future business outlook, enhancing communication with investors.
- Live Webcast Access: Investors can listen to the live or archived conference call via the 'Investors' section of the company's website, increasing transparency and meeting market demand for information.
- Global Business Presence: AMSC provides smart, clean energy solutions globally, focusing on enhancing grid reliability and operational safety for naval fleets, further solidifying its market position in the renewable energy sector.
See More
Analysis of AMSC Put Selling Strategy
- Options Selling Risk: Selling puts on AMSC does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, and unless the stock falls to $18, the only benefit is a 14% annualized return from the premium.
- Exercise Condition Analysis: The put seller will only have a cost basis of $15.60 per share if AMSC's stock drops 39.6% to $18, meaning the profit is solely from the premium collected, highlighting the asymmetry of risk and reward in options trading.
- Historical Volatility Reference: AMSC's trailing twelve-month volatility is calculated at 92%, which, when combined with fundamental analysis, can assist investors in determining whether selling the January 2027 put at the $18 strike is a worthwhile strategy under current market conditions.
- Market Price Comparison: With AMSC's current stock price at $30.06, the strategy of selling puts must consider the relationship between market price and strike price to evaluate potential risks and returns, ensuring sound investment decisions.
See More
