Analysts rate Aterian Inc. (ATER:NSD) with a Buy, $4.83 target

STA Research
by: STA Research

Based on the Aterian Inc. ATER stock forecast from 2 analysts, the average analyst ATER stock price is USD 4.83 over the next 12 months. Aterian Inc.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Aterian Inc. is Slightly Bearish, which is based on 4 positive signals and 7 negative signals. At the last closing, ATER stock price was USD 2.27. ATER stock price has changed by -0.11% over the past week, -0.14% over the past month and -66.12% over the last year.

About Aterian Inc. (ATER:NSD)

Together with its subsidiaries, Aterian, Inc. conducts business as a technology-enabled consumer goods corporation both domestically and abroad. The business offers Artificial Intelligence Marketplace e-Commerce Engine, a software technology platform that creates, develops, markets, and sells items using machine learning, natural language processing, and data analytics.

In April 2021, the business changed its name from Mohawk Group Holdings, Inc. to Aterian, Inc. Aterian, Inc. was established in 2014 and has its corporate headquarters in New York. Address: 37 East 18th Street, 10003 New York, New York, USA

Latest Analyst Ratings for ATER’s stock:

 

What we like:

Low volatility

ATER stock annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

ATER stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced on a cash flow basis

ATER stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth

ATER stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

ATER stock has shown below median revenue growth in the previous 5 years compared to its sector

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