Want to discover the secrets of AVCT Stock? Want to know about the price forecast?
The article focuses on a detailed examination and an extensive analysis of the AVCT Stock and discusses the price forecast as predicted by various analysts.
AVCT, or American Virtual Cloud Technologies, Inc. a pure-play cloud communications and collaboration company founded in 1987 and is based in Atlanta, Georgia.
According to the company history, Pensare Acquisition Corp(PAC), a Special Purpose Acquisition Company (SPAC), wanted to enter a merger in the telecommunications, media, and technology (TMT) industries. Pensare Acquisition Corp was listed on NASDAQ on April 2017 to put that into effect.
In April 2020, PAC acquired Computex, the market leader in various IT services, including UCaaS or Unified Communications-as-a-Service, directory and messaging services, enterprise networking, cybersecurity, collaboration, data center, etc.
During this time that Pensare Acquisition Corp changed its name to American Virtual Cloud Technologies and began trading on NASDAQ with the ticker AVCT.
American Virtual Cloud Technologies Inc., or AVCT, acquired a cloud-based, real-time communications platform called Kandy in 2020. Kandy is a capable provider of cloud-based enterprise services.
The carrier grade proprietary cloud communication platform, Kandy, has different service capabilities. It offers services such as UCaaS, CPaaS, SIP Trunking as a service, and CCaaS.
It enables service providers, enterprises, software vendors, systems integrators, partners, and developers to improve their applications and services with real-time contextual communications.
Finally, in 2022 AVCT divested Computex Technology Solutions, which offers various hardware, software, and other value-added service offerings to Calian Group Limited.
AVCT has strategic partnerships with AT&T, IBM, and Etisalat.
Company Name | American Virtual Cloud Technologies, Inc. |
Year Founded | 1987 |
Headquarters | Atlanta, Georgia, USA |
Founder | Darrell J. Mays |
CEO | Kevin Keough |
Ticker | NASDAQ: AVCT (Delisted from NASDAQ post-filing of Chapter 11 Bankruptcy by AVCT) OTC: AVCT.Q (Post-Delisting from NASDAQ) |
Industry | Information Technology Services |
Sector | Technology Services |
Number of Employees | 356 |
Market Cap | $4.059 million |
Revenue | $19.99 million |
Website |
Let us now focus on the performance of AVCT as a company and also analyze how the AVCT stock performed. The data has been fetched from Yahoo Finance.
Profit Margin | 0.00% |
Operating Margin (ttm) | -240.83% |
Management Effectiveness
Return on Assets (ttm) | -38.67% |
Return on Equity (ttm) | -275.00% |
Income Statement
Revenue (ttm) | 19.99M |
Revenue Per Share (ttm) | 2.83 |
Quarterly Revenue Growth (yoy) | 14.20% |
Gross Profit (ttm) | 3.87M |
EBITDA | -45.5M |
Net Income Avi to Common (ttm) | -106.65M |
Diluted EPS (ttm) | -35.2100 |
Quarterly Earnings Growth (yoy) | N/A |
Balance Sheet
Total Cash (mrq) | 10.75M |
Total Cash Per Share (mrq) | 0.33 |
Total Debt (mrq) | 28k |
Total Debt/Equity (mrq) | 0.16 |
Current Ratio (mrq) | 2.30 |
Book Value Per Share (mrq) | 0.71 |
Operating Cash Flow (ttm) | -72.33M |
Levered Free Cash Flow (ttm) | -58.48M |
Legend: ttm – trailing twelve months, yoy – year over year, mrq – most recent quarter
52-Week Change | -99.18% |
S&P500 52-Week Change | -10.17% |
52 Week High | 16.5000 |
52 Week Low | 0.0650 |
50-Day Moving Average | 0.6894 |
200-Day Moving Average | 2.1712 |
Avg Vol (3 month) | 2.17M |
Avg Vol (10 day) | 2.3M |
Shares Outstanding | 32.47M |
Implied Shares Outstanding | N/A |
Float | 29.78M |
% Held by Insiders | 3.15% |
% Held by Institutions | 10.59% |
Shares Short (Dec 29, 2022) | 2.07M |
Short Ratio (Dec 29, 2022) | 1.3 |
Short % of Float (Dec 29, 2022) | 7.01% |
Short % of Shares Outstanding (Dec 29, 2022) | 6.37% |
Shares Short (prior month Nov 29, 2022) | 1.81M |
Let’s check the breakdown of the major holders of the company
3.15% | % of Shares Held by All Insider |
10.59% | % of Shares Held by Institutions |
10.93% | % of Float Held by Institutions |
26 | Number of Institutions Holding Shares |
| Holder | Shares | Date Reported | % Out | Value |
|---|---|---|---|---|
| Sabby Management, LLC | 1,100,000 | Dec 30, 2022 | 3.39% | 137,500 |
| Vanguard Group, Inc. (The) | 430,573 | Dec 30, 2022 | 1.33% | 53,821 |
| Blackrock Inc. | 223,664 | Dec 30, 2022 | 0.69% | 27,958 |
| Geode Capital Management, LLC | 215,088 | Dec 30, 2022 | 0.66% | 26,886 |
| Susquehanna International Group, LLP | 85,685 | Dec 30, 2022 | 0.26% | 10,710 |
| Millennium Management Llc | 57,572 | Dec 30, 2022 | 0.18% | 7,196 |
| Northern Trust Corporation | 24,973 | Dec 30, 2022 | 0.08% | 3,121 |
| Bank Of New York Mellon Corporation | 15,939 | Dec 30, 2022 | 0.05% | 1,992 |
| Morgan Stanley | 11,080 | Dec 30, 2022 | 0.03% | 1,385 |
| State Street Corporation | 10,857 | Dec 30, 2022 | 0.03% | 1,357 |
Let us check the analysis by analysts from Tradingview and Simply Wall ST, who have been following the AVCT Stock.
We can see that the majority of the 26 analysts, i.e., 14 analysts, have felt that the AVCT Stock should be sold and have given a “Sell” signal on a weekly timeframe. It indicates that the AVCT stocks reflect no confidence in the investors.
Most analysts have stayed Neutral for the oscillators, and some have given a buy signal, and since there are no sell signals, the sign shows “Buy.”
On the other hand, the Moving Average signal shows a “Strong Sell,” as almost all analysts have indicated selling the stock in terms of MA.
For the monthly timeframe, the analysts have given a “Sell” signal as most analysts have felt that AVCT stock should be sold or no action should be taken, i.e., stay ” Neutral.”
The oscillators on the monthly show “Neutral,” and Moving Average shows “Strong Sell.”
Given the current condition, the indication on both the weekly and monthly timeframe is that investors are very pessimistic about the AVCT stock. The situation may change if the company turns around and focuses on creating value for the investors.
Note: The oscillators include various indicators such as RSI, Stochastic RSI, MACD, etc., and the Moving Averages include different moving averages such as EMA 20, EMA 50, SMA 20, SMA 50, SMA 200, etc.
Some of the critical points portrayed by Simply Wall ST are as follows:
Since AVCT stock (OTC: AVCTQ) has been unprofitable, the Price to Sales or PS Ratio is the best metric to measure its relative value.
The Price to Sales or PS Ratio is calculated by dividing the share price by the company’s annual Revenue per Share.
AVCT Stock (OTC: AVCT.Q) PS Ratio is 0.2x.
AVCT stock (AVCT.Q) has performed better in PS Ratio (0.2x) than most of its Peers, with an average Price to Sales Ratio of 50.8x.
AVCT stock (AVCT.Q) has performed better in PS Ratio (0.2x) than US IT Industry with an average Price to Sales Ratio of 1.6x.
Note: Due to a lack of enough data, both the Tradingview and Simply Wall ST analysts could not provide any revenue projections or price forecasts for AULT.
A reverse stock split consolidates the existing shares into fewer shares. It doesn’t affect the company value but only the stock price.
It is a signal that the company is in a lot of distress, and by this technique, they raise the value of the low-priced stocks.
The reason that companies do reverse stock splits is to avoid being delisted from the exchanges and remain relevant in the market.
According to an AVCT press release on September 29, 2022, AVCT was looking to execute a 1-for-15 reverse stock split on September 30, 2022, and that AVCT stock would trade on the split-adjusted basis from October 3, 2022.
As indicated, the company was distressed and wanted to avoid being delisted from NASDAQ. However, the inevitable happened, and they got delisted from NASDAQ after they filed for bankruptcy.
As per SEC or Securities and Exchange Commission report, AVCT and two subsidiaries filed for voluntary Bankruptcy Petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware on January 11, 2023.
On the same day, i.e., January 11, 2023, the company or American Virtual Cloud Technologies, Inc. received a written Delisting Notice from NASDAQ following the bankruptcy petition by AVCT as per the NASDAQ Listing Rules 5101, 5110(b) and IM-5101-1.
According to the notice, the Company’s common stock and warrants (the “Securities”) were delisted from NASDAQ.
AVCT also announced that they filed for bankruptcy and that the operations would continue as usual. They also mentioned that they might pursue initiatives that could result in the sale of a portion of the company.
Read More:
No, AVCT only decided to sell its Computex Technology Solutions to Calian Group Ltd as a divestment strategy. AVCT is now focusing on real-time communications with the Kandy cloud communications platform, but after they filed for bankruptcy, they may sell portions of the company.
AVCT is not selling its entire business. They have only sold their Computex business to Calian Group as a divestment strategy. As they have filed for Chapter 11 Bankruptcy, they may further sell portions of AVCT as per their announcement.
The future of AVCT stock is uncertain. Most have predicted the stock to fall close to zero in twelve months post-filing of bankruptcy.
American Virtual Cloud Technologies, Inc., or AVCT, has struggled over the past year. Recently, they filed for a Bankruptcy Petition under Chapter 11 of the United States Bankruptcy Code. They listed assets and liabilities worth $50 million each in their bankruptcy filing. They were also delisted from NASDAQ following the bankruptcy.
Read More:
American Virtual Cloud Technologies and the AVCT Stock has seen significant negative growth rate in the past year. Their current stock market price dropped more than 90% and got delisted from NASDAQ.
Although the company stock price surged after being traded through OTC, the future is still bleak.
However, the company has renewed its focus on growing the organization. Given the rise of online technology solutions and cloud computing, American Virtual Cloud Technologies, Inc.’s real-time communications services have the perfect ground to turn around, grow exponentially, and create value for its shareholders.
Disclaimer: All the information presented in the article has been collected independently by BitMoneyAlpha and has not been reviewed or approved by AVCT. The product information may vary. Please check the company website for the latest information. The statements and opinions expressed in this article belong to the author and do not necessarily represent the views or opinions of any company or stock issuer. The content is for informational purposes only. It is not financial advice. So, before investing, do your due diligence and always invest what you are comfortable losing, as all investments are your responsibility.
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