Shares of the security camera maker hit a 52-week high of $5.30 a share in morning trading.
About 2.4 million shares of Vicon Industries were traded by 10:55 a.m., well above the average trading volume of about 6,400 shares a day.
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TheStreet Ratings team rates VICON INDUSTRIES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate VICON INDUSTRIES INC (VII) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 90.3% when compared to the same quarter one year ago, falling from -$0.72 million to -$1.37 million.
- The share price of VICON INDUSTRIES INC has not done very well: it is down 13.06% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- VICON INDUSTRIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, VICON INDUSTRIES INC turned its bottom line around by earning $0.00 versus -$0.30 in the prior year.
- VII, with its decline in revenue, underperformed when compared the industry average of 8.8%. Since the same quarter one year prior, revenues slightly dropped by 7.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- 36.24% is the gross profit margin for VICON INDUSTRIES INC which we consider to be strong. Regardless of VII's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VII's net profit margin of -14.80% significantly underperformed when compared to the industry average.
- You can view the full analysis from the report here: VII Ratings Report
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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.