Key points
- Insiders are selling Amprius Technologies.
- Institutions are buying Amprius Technologies, but the holdings are small.
- Analysts see a triple-digit upside for this stock.
Amprius Technologies (NYSE: AMPX) is an emerging disruptor of lithium-ion batteries. The company’s silicon anode design offers higher density, faster charging times, and faster discharge rates, making them perfect for virtually any application. The company is ramping up production as quickly as possible, recently breaking ground on its Amprius Labs facility upgrade, which has improved capacity 10-fold.
Even so, it is unable to meet customer demand and is on track to ramp up production again in 2025. There is a facility in Colorado on track to begin operations soon, which will allow the company to undertake new activities. Current customers include the US Army, which purchases batteries for mission-critical portable applications and drones, and major aerospace manufacturers and defense contractors such as Airbus and Teledyne FLIR (NYSE: TDY).
Commercial applications include flight with electric vehicles. The company’s batteries are perfect for EVTOL applications such as JOBY Aviation (NYSE: JOBY) AND Archer Aviation (NYSE: ACHR).
Insider sales are not a problem; it could be dilutive sales
Insiders have been selling shares in Amprius Technologies, but this does not pose a significant problem for the share price. Sales are carried out mainly by two professionals, including a director, and are small and periodic. Insiders still own a solid 15% of the shares, showing a significant stake in the game, but other concerns exist.
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Amprius Technologies is issuing shares to raise capital. The company increased its number of shares outstanding by 3.6% year-to-date through the end of last quarter and has made additional sales since then. Part of the increase is attributable to stock-based compensation and warrants exercised during the period, but it still has a dilutive effect. Furthermore, losses accumulate and erode shareholder capital, adding downward pressure to the stock price.
Institutions like Amprius: Analysts see value in Amprius
Domestic sales are to some extent compensated by institutions. Institutions own a small 8% of the stock, but they have continued buying in recent quarters, and activity is increasing. The ownership is small but large and includes some funds and private capital. The top three holders are Invesco, Vanguard and BlackRock, which represent approximately 3.5% of the total.
Analysts are more optimistic about the stock. The stock caught the attention of several analysts in the fourth quarter, solidifying its Buy rating. The consensus of eight suggests that this stock will advance at least 200%, and the low end of the range suggests that the price action could rise quickly as it advances; assumes an increase of 165%. The latest is from Roth Capital, which reiterates a Buy rating in January 2024.
The next visible catalyst will come in mid-March with the fourth quarter earnings report. Analysts expect revenue growth to accelerate to 265%, but may be underestimating the strength of the business. The $2.88 million represents a meager sequential growth of $0.08 million that does not take into account purchase orders received in December and the launch of the SiCore platform. SiCore is a new line of batteries with silicon anodes of various sizes, which offer greater power and longer life than traditional batteries.
The technical point of view: Amprius Technologies has hit rock bottom
Price action in Amprius Technologies is lackluster but appears to be bottoming. The market is moving sideways within a range, showing solid support near $3.50. The stock price will likely retest that level without a catalyst to alter direction, but a show of support is expected.
Among the risks is the lack of market interest. Stock trading volume has been low and declining in recent weeks. Without a catalyst to support interest, the stock market could lose critical support. If the market confirms support, the price is likely to continue moving sideways within the range. However, a move below the $3.50 level could take this market to an even lower price level.
Companies in this article:
| Agency | Current price | Price change | Dividend yield | P/E ratio | Consensus assessment | Consensus price target |
|---|---|---|---|---|---|---|
| Joby Aviation (JOBY) | $5.46 | -10.1% | N/A | -7.27 | Jack | $7.60 |
| Aviation with Archers (ACHR) | $4.86 | -3.8% | N/A | -2.75 | Acquire | $9.60 |
| Teledyne Technologies (TDY) | $430.94 | +1.0% | N/A | 11.29pm | Acquire | $515.67 |
| Amprius Technologies (AMPX) | $3.52 | -4.6% | N/A | -9.03 | Moderate purchase | $11.40 |
Experience
Thomas Hughes has been working with InsiderTrades.com since 2019.
Areas of expertise
Technical Analysis, S&P 500; retail, consumer goods, consumer staples, dividends, high yield, small cap, technology, economic data, oil, cryptocurrencies
Education
Associate of Arts in Culinary Technology
Past experience
Market observer, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights.