Most of the investors sell a stock when it is continuously declining. However, quite often, if the decline is not because of any fundamental reason, these stocks seek a reversal and offer another chance to invest in it.
Before applying their mind on should I buy stock, the investors need to differentiate between a retracement and a reversal, often identified by price action patterns.
Audinate Group Limited (ASX: AD8) ia among Top ASX Stocks, that
has made significant strides in expanding its Dante video solutions among OEM customers. They now have 50 manufacturers licensing Dante video, up from 30 a year ago, and recently launched 66 new video products at the Integrated Systems Europe (ISE) tradeshow, tripling the previous year's offerings. Ahead of schedule, Audinate achieved its FY24 goal of doubling the video ecosystem to over 30,000 units deployed.
The Audio-Visual (AV) market is currently valued at around US$285 billion as of 2022, and it is poised for substantial growth. Projections suggest the industry will expand by nearly 41% over the next six years, reaching approximately US$402 billion by 2028.
Source : Company Reports
Audinate Group Limited achieved impressive financial results for the first half of fiscal year 2024, ending 31 December 2023.
Revenue soared by 47.7% to US$30.4 million, compared to US$20.6 million in the previous year's corresponding period. This growth was bolstered by a 51.1% increase in Australian dollar (AUD) revenue, reaching A$46.6 million, aided by favorable AUD/USD currency dynamics.
Audinate's operational performance was notably strong, reflected in EBITDA of A$10.1 million, marking a notable 137% improvement from the previous year. Net profit after tax rebounded significantly to A$4.7 million, a turnaround from a loss of A$0.4 million in the prior period. Operating cash flow strengthened to A$11.8 million, up from A$1.8 million in 1H23, underscoring the company's efficient financial management.
The company's balance sheet remained robust, boasting a substantial A$111.7 million in cash and term deposits. Its operating cash flow was $11.8m rising from $1.8m pcp, Positive free cash flow being $3.4m compared to ($6.8m) negative free cash flow pcp, and remarkably, more than 100% cash conversion in 1H24
The stock is currently displaying promising technical signals across both monthly and weekly timeframes, suggesting a bullish trend. Over the past year, Audinate has further solidified its leadership in audio networking technology, with a substantial increase in both the number of products and manufacturers adopting Dante technology compared to competitors.
Audinate's adoption in audio networking technology surpasses that of its closest competitor by a substantial margin of 12 times. This positions Audinate Group Stock strongly to capitalize on the expanding market demand and maintain its growth trajectory in the AV industry.
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.