American Superconductor Corporation (NASDAQ:AMSC) Bottoming?

Windstream Holdings, Inc. (NASDAQ:WIN)

American Superconductor Corporation (NASDAQ:AMSC)

American Superconductor Corporation (NASDAQ:AMSC) shares notched a new 52-week low on the basis of a ratings downgrade by investment firm Friedman, Billings, Ramsey & Co. (FBR). In that downgrade, FBR lowered their price target 33% from $9 to $6.

On Thursday AMSC shares closed at $4.21 and gapped down to open at $4.06 on Friday. Within one hour the share had bottomed out at $3.54 before trading sideways for much of the day before closing at $3.60. Share volume was over five times the listed 30-day, daily average.

Founded in 1987, American Superconductor Corporation (NASDAQ:AMSC) designs and engineers wind turbine electronic controls and systems that reduce the cost of wind energy. Gridtec Solutions, a subsidiary, provides engineering planning services and advanced grid systems that optimize network reliability, efficiency, and performance. American Superconductor’s solutions are now powering gigawatts of renewable energy globally. Their solutions enhance the performance and reliability of power networks in more than a dozen countries and has operations in Asia, Australia, Europe, and North America. The company’s headquarters are in Devens, Massachusetts.

Shareholders have had quite a ride over the long-term. In early 2010, AMSC shares were trading, adjusted for dilution, over $400. But later that same year, a slide started that had the shares trading below $50 by 2012. The wind energy company could not recover its 2010 luster as sales disappointed.

Per share losses have been shrinking since 2013. In that year AMSC lost (-$12.46) per share. That loss has reduced each year and in 2017 the company posted its smallest loss in years at (-$1.98). Meanwhile the number of shares outstanding has exploded since 2013 and diluted shareholder’s interests. In 2013, 5.31 million shares were outstanding, however by 2017 that number grew to 13.8 million. Sales have been inconsistent at best. In 2013 the company posted a sales figure of $87.4 million. That figure was followed by $84.1 million, $70.5 million, $96 million, and, for 2017, $75.2 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Author: James Marion

James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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