Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell VICR stock, we need to analyze both technical and fundamental factors.

Technical Analysis:

VICR's stock price has been experiencing a bearish trend recently, with significant resistance around the $56 mark. The latest candlestick chart shows a potential reversal pattern, indicating a possible short-term upside.

Valuation Analysis:

VICR currently has a P/E ratio of 516.27, which is substantially higher than the average for the technology sector, typically around 20-30. This suggests that investors are pricing in high growth expectations, which might not be sustainable if growth slows down.

Sentiment and Analyst Ratings:

Analyst sentiment is mixed. While some analysts remain positive about VICR’s ability to lead in its market, others express concerns about its ability to scale production efficiently. Based on recent analyst ratings, VICR has a consensus moderate buy, but it's important to consider the high-risk/reward profile.

Conclusion:

Given the high valuation and recent volatility, VICR stock might not be the best buy for risk-averse investors at this time. However, if you're willing to accept potential price fluctuations for long-term growth, it could still be a good option. Consider waiting for a price dip or a confirmation of an uptrend before entering the market.

The price prediction for VICR stock in 2025 is expected to range between $51 and $59. Based on Fibonacci levels and recent price action, the stock may test resistance at $57-$59 if it breaks above current levels, supported by neutral RSI and MACD trends. A potential downside target is $51 if it breaks below support.

The S1 support level for VICR Stock is $46.81 ,The R1 resistant level for VICR Stock is $55.25.

As of the end of day on 2025-04-02, the price of VICR Stock was $45.43.

The target price for VICR Stock according to analyst rating is 50.00, with the highest price target at 50.00 and the lowest at 50.00. Analysts have a Hold rating on VICR Stock overall.

The market cap of VICR is $2.2B.

Analysis and Insights

VICR appears to be overvalued based on several key metrics and analyses:

1. High Valuation Multiples:

   • The stock has a trailing P/E ratio of 62.14 and an EV/EBITDA of 104.66, both significantly higher than industry averages, indicating a premium valuation.
   • The price-to-sales (P/S) ratio of 6.05 and price-to-book (P/B) ratio of 7.49 further suggest the stock is trading at a substantial premium relative to its fundamentals.

2. Inconsistent Earnings and Margins:

   • While VICR reported positive net income in Q4 2024, its net margin of 10.65% and ROE of 1.1% are underwhelming, especially given the stock's high valuation.

3. Negative Insider Sentiment:

   • Recent insider activity shows increased selling, including a notable sale by Director Estia Eichten, signaling potential lack of confidence in the stock's future performance.

4. Overvaluation Relative to Intrinsic Value:

   • According to a discounted cash flow (DCF) analysis, VICR is trading at a 30% premium to its intrinsic value of $40.48, with the stock currently priced at $52.79. This gap suggests significant overvaluation.

5. Technical Indicators:

   • The stock's RSI of 49.92 indicates a neutral position, but the MACD is slightly bearish, and the Fibonacci resistance level at $55.89 could act as a ceiling for price movement.

Conclusion

VICR's high valuation multiples, inconsistent profitability, and negative insider sentiment, combined with its current price exceeding its intrinsic value, suggest the stock is overvalued. Investors should exercise caution and consider waiting for a price correction before entering.

Vicor Corporation designs, develops, manufactures, and markets modular power components and power systems for converting electrical power for use in electrically powered devices. The Company offers a range of alternating current (AC) and direct current (DC) power conversion products. It also provides products addressing other DC voltage standards. The Company categorizes its offerings as Advanced products and Brick products. Its Advanced products category consists of products which are used to implement its proprietary distribution architecture, Factorized Power Architecture (FPA), a power distribution architecture enabling flexible, rapid power system design using individual components optimized to perform a specific conversion function. The Company's Brick-format converters provide the integrated transformation, rectification, isolation, regulation, filtering, and/or input protection necessary to power and protect loads, across a range of conventional power architectures.

The price prediction for VICR stock by 2030 is expected to reach $70 to $90 per share. This forecast is based on the company's strong earnings growth prospects and its leadership in the power systems market, despite current overvaluation concerns.

VICR has a total of 1063 employees.