Vuzix Corporation (NASDAQ:VUZI) Making Strong Rebound off Lows

Vuzix Corporation (NASDAQ:VUZI)

Shares of Vuzix Corporation (NASDAQ:VUZI) are higher for the third day in a row, four days before the Augmented Reality (AR) provider releases their Q3 financial earnings report. Volume is heavy – over three times the listed average. Today’s 6.5% move higher lends some relief to stock that has been sliding in value for over a year.

Vuzix Corporation (NASDAQ:VUZI)

Vuzix Corporation (NASDAQ:VUZI) supplies Smart-Glasses and Augmented Reality (AR) technologies for the consumer and enterprise markets. Vuzix’s products include personal display and wearable computing devices for virtual and augmented reality. Vuzix holds 59 patents and 42 additional patents pending and numerous IP licenses. The company has won Consumer Electronics Show awards for innovation for the years 2005 to 2017.

Intellectual Property

This week Vuzix Corporation (NASDAQ:VUZI) announced that their patent portfolio had increased 53% over the last year. The number of patents, and pending patents, has increased from 66 to 101 from 66. In the area of optics, head mounted displays, and smart glasses, the company now has 59 patents compared to 43 one year ago.

VUZI Stock Performance

Vuzix Corporation (NASDAQ:VUZI) is followed by two investment firm analysts and both give VUZI stock a “Strong Buy” rating. Their one-year, consensus target price is $10.50. This morning, VUZI stock opened at $4.65 which is only $0.15 higher that its 52-week low of $4.50. VUZI had a 52-week high of $8.70 – established almost exactly one year ago.

Over the past year VUZI shares have lost almost 20% of their value. Year-to-date, the shares are down an even larger 27%. But in the last week, the market appears to be viewing the stock with more favor and, as a result, VUZI shares are up almost 7% during that period.

Vuzix Corporation (NASDAQ:VUZI) has seen expanding EPS losses and weaker sale over the past three years. EPS in 2014 was a loss of (-$0.75). That per share loss expanded to (-$1.23) by 2016. Sales were $3 million in 2014, but dropped to $2.1 million by 2016.

In the meantime, the shares have been diluted every year. In 2012 there were 3.54 million shares outstanding. That number stood at 16.91 million by the end of 2016.

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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Toshiba Ltd. Gives Vuzix Corporation (NASDAQ:VUZI) A Boost

Vusix Corporation (NASDAQ:VUZI)

Vuzix Corporation (NASDAQ:VUZI) shares are up on news of an agreement to build a customized pair of smart glasses with electronics giant Toshiba Ltd. – a wholly owned subsidiary of the Toshiba Corporation. Under the terms of the agreement, Vuzix and Toshiba have embarked on a development program with milestone payments totaling over one million U.S. dollars. With development efforts well under way, Toshiba, subject to a final manufacturing agreement, expects to place additional purchase orders from Vuzix for production deliveries in the 4th quarter of 2017.

Vuzix Corporation (NASDAQ:VUZI) is a developer and manufacturer of smart-glasses, augmented reality (AR) and virtual reality (VR) technologies and products for the consumer and enterprise markets. The Company’s products include personal display and wearable computing devices that offer users a portable viewing experience, provide solutions for mobility, wearable displays and virtual and augmented reality. Vuzix holds 49 patents and 43 additional patents pending and numerous IP licenses in the video eyewear field. The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2017 and several wireless technology innovation awards among others.
In January 2015, Vuzix received a $24.8 million investment from Intel Corporation to be used as general working capital to accelerate the introduction of the next generation of Vuzix fashion-based wearable display products for the consumer marketplace. The major shareholders of Vuzix are the founding management team and Intel Corporation, which collectively own approximately 38% of Vuzix Corporation (NASDAQ:VUZI).

In early November, Vuzix announced four more of the most recent application partners to join the Vuzix Industrial Partner (VIP) program – Evolar, Oculavis, Nx Tbase Technologies, and Idnet. Paul Travers, President and Chief Executive Officer of Vuzix commented on the occurrence “Adding new VIP’s like Evolar, Oculavis, NxTbase Technologies, and Idnet strengthen the European ecosystem of advanced applications for the Vuzix M100 and M300 smart glasses technologies. These new partners all have deep experience that they now bring to the Vuzix M300 platform, allowing for immediate deployment into a wide range of business sectors across Europe and globally.”
Vuzix Corporation (NASDAQ:VUZI) was trading above $10 in 2016. Since then the shares have dropped into the $5 handle. VUZI shares are trading over 35% their 52-week highs but almost 40% above their 52-week lows. Despite some high-profile partnerships, only one analyst covers Vuzix Corporation (NASDAQ:VUZI) and they rate the shares as a “Strong Buy” with a $10 price target.

Ticker Symbol VUZI
Last Price a/o 10:00 AM EST  $                      5.85
Average Volume                    299,000
Market Cap (mlns)  $                  108.45
Sales (mlns) $2.00
Shares Outstanding (mlns) 19.9
Share Float (mlns) 15.9
Shortable Yes
Optionable Yes
Inside Ownership 8.60%
Short Float 20.48%
Short Interest Ratio 10.88
Quarterly Return -26.85%
YTD Return -19.85%
Year Return 1.49%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20 year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.