NEW YORK (TheStreet) -- Shares of iRobot (IRBT) exploded 22% to $38.20 during Tuesday's session, with trading volume of 2.5 million five times higher than its three-month average. Year to date, the stock is up 105.1%.
Investors were heaping into the stock following news Google (GOOG) had purchased robotics company Boston Dynamics over the weekend, the latest development in the progress of artificial intelligence and an indication the industry is heating up. iRobot, maker of the Roomba, develops autonomous robotic technology to solve real-world problems, particularly from a consumer endpoint.
Also whetting investors' appetite, investment firm Raymond James upgraded the stock to a "strong buy". A day earlier, boutique firm Sidoti & Company upgraded its rating to "buy".
TheStreet Ratings team rates iRobot Corp as a Hold with a ratings score of C. The team has this to say about their recommendation:
"We rate iRobot Corp (IRBT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: