PowerFleet (NASDAQ:AIOT) Shares Gap Up – Here’s Why

PowerFleet, Inc. (NASDAQ:AIOT)’s share price gapped up prior to trading on Wednesday . The stock had previously closed at $3.83, but opened at $4.06. PowerFleet shares last traded at $4.4040, with a volume of 487,400 shares trading hands.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on AIOT. Wall Street Zen upgraded PowerFleet from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Weiss Ratings lowered shares of PowerFleet from a “hold (c-)” rating to a “sell (d-)” rating in a research report on Tuesday, June 16th. UBS Group set a $7.00 price target on shares of PowerFleet in a research note on Tuesday, June 16th. Finally, Raymond James Financial cut their price target on shares of PowerFleet from $8.00 to $7.00 and set an “outperform” rating for the company in a report on Tuesday, June 16th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $9.67.

PowerFleet Trading Up 14.5%

The firm has a market cap of $588.38 million, a price-to-earnings ratio of -27.66 and a beta of 1.43. The business has a fifty day moving average of $3.61 and a two-hundred day moving average of $4.03. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.99 and a current ratio of 1.13.

PowerFleet (NASDAQ:AIOT) last issued its quarterly earnings data on Monday, June 15th. The company reported $0.04 earnings per share (EPS) for the quarter. The firm had revenue of $114.49 million during the quarter, compared to analysts’ expectations of $112.98 million. PowerFleet had a negative return on equity of 1.33% and a negative net margin of 4.63%.During the same period in the previous year, the firm posted ($0.09) earnings per share. As a group, equities analysts expect that PowerFleet, Inc. will post 0.17 earnings per share for the current fiscal year.

PowerFleet announced that its board has authorized a stock buyback plan on Tuesday, June 30th that permits the company to repurchase $30.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 6% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Pinnacle Associates Ltd. raised its holdings in shares of PowerFleet by 635.7% in the third quarter. Pinnacle Associates Ltd. now owns 1,398,305 shares of the company’s stock worth $7,327,000 after acquiring an additional 1,208,252 shares during the last quarter. Private Management Group Inc. lifted its position in shares of PowerFleet by 6.6% in the third quarter. Private Management Group Inc. now owns 5,208,278 shares of the company’s stock valued at $27,291,000 after acquiring an additional 324,127 shares in the last quarter. Kennedy Capital Management LLC lifted its position in shares of PowerFleet by 292.3% in the fourth quarter. Kennedy Capital Management LLC now owns 1,970,918 shares of the company’s stock valued at $10,485,000 after acquiring an additional 1,468,573 shares in the last quarter. Bastion Asset Management Inc. boosted its stake in shares of PowerFleet by 78.4% during the fourth quarter. Bastion Asset Management Inc. now owns 1,712,883 shares of the company’s stock valued at $8,853,000 after acquiring an additional 752,782 shares during the last quarter. Finally, UBS Group AG boosted its stake in shares of PowerFleet by 275.1% during the fourth quarter. UBS Group AG now owns 585,774 shares of the company’s stock valued at $3,116,000 after acquiring an additional 429,609 shares during the last quarter. Institutional investors and hedge funds own 73.40% of the company’s stock.

PowerFleet Company Profile

PowerFleet, Inc (NASDAQ: AIOT) develops and delivers Internet of Things (IoT)–based telematics and asset-tracking solutions designed to help businesses monitor, manage and optimize fleets of vehicles and industrial equipment. Its core offerings include wireless sensors, GPS tracking devices and cloud-hosted software platforms that provide real-time visibility into vehicle whereabouts, usage patterns, fuel consumption and maintenance needs. The company’s systems also support regulatory compliance and safety monitoring, enabling customers to reduce operational costs, minimize theft and improve overall asset utilization.

The company’s hardware portfolio features RFID readers, active and passive tags, onboard diagnostics (OBD) adapters and temperature or motion sensors that can be deployed on trucks, trailers, forklifts, containers and other high-value assets.