Vicor Corporation: Fundamentals are Supporting the Bull Run

Vicor Corporation

Vicor Corporation (NASDAQ:VICR) share price has been on the rise since the start of this year. The significant uptrend in its price is due to trader’s optimism in its future fundamentals and its increasing market share. It designs, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies.

Vicor Corporation share price rose 75% since the start of this year, extending the twelve-month rally to 100%. Its stock currently trades around the 52-week high of $37 a share – with the market cap of $1.47 billion. VICR stock has the 52-week trading range of $16.30 – $37.45.

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Its financial numbers and order backlog completely backed Vicor Corporation’s share price growth.

The company posted 19% revenue growth in the first quarter this year compared to the past year period. Its gross margin and earnings also increased at the robust rate. Its net income jumped to $0.10 per share in Q1, relative to the loss of $0.02 per share in the prior year period.

Fundamentals Are Improving for Vicor Corporation in the Second Quarter

The company has been experiencing solid demand for its products from domestic and international markets. Its total backlog was standing at around $89,975,000 at the end of the first quarter, sharply higher from $73,054,000 at the beginning of the quarter.

Dr. Patrizio Vinciarelli, Chief Executive Officer, said, “With $90 million in backlog as of the end of Q1, Q2 revenues may increase nearly 10% sequentially. With rising volumes and economies of scale, gross margins are also expected to increase.”

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The double-digit revenue growth on a sequential year over year basis offers robust support to its stock price momentum. The unusual increase in large options trading activity demonstrates investor’s confidence in VICR stock.  Investors bought 1,536 call options of VICR stock yesterday, up almost 1,869% from to the normal volume of 78 call options.

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