Acacia Communications, Inc. (ACIA) Buy or Sell Stock Guide

Last updated: Apr 12, '19

Are you looking for the analysis of Acacia Communications, Inc. (ACIA) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 2 reasons to buy and 6 reasons to sell ACIA stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about ACIA stock:

  • Is ACIA a buy or a sell?
  • Should I sell or hold ACIA stock today?
  • Is ACIA a good buy / investment?
  • What are ACIA analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy ACIA stock:

1. ACIA quarterly revenue growth was 23.70%, higher than the industry and sector average revenue growth (3.73% and 5.21%, respectively). See ACIA revenue growth chart.

2. ACIA average analyst rating is Buy. See ACIA analyst rating chart.

Now that you understand the bull case, let’s look at the reasons to sell ACIA stock (i.e., the bear case):

1. ACIA stock price ($59.22) is close to the 52-week high ($59.83). Perhaps now is a good time to sell? See ACIA price chart.

2. ACIA profitability is declining. The YoY profit margin change was -8.55pp. See ACIA profitability chart.

3. ACIA forward P/E ratio is 29.82, and it’s high compared to its industry peers’ P/E ratios. See ACIA forward P/E ratio chart.

4. ACIA Price/Sales ratio is 6.96, and it’s high compared to its industry peers’ P/S ratios. See ACIA forward Price/Sales ratio chart.

5. ACIA average analyst price target ($55.35) is below its current price ($59.22). See ACIA price target chart.

6. ACIA short share of float is 7.85%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See ACIA short share of float chart.

Now let's look at the key statistics for ACIA:

Metrics ACIA
Price $59.56
Average Price Target / Upside $55.35 / -7.07%
Average Analyst Rating Buy
Industry Communication Equipment
Sector Technology
Number of Employees 391
Market Cap $2.35B
Forward P/E Ratio 29.6
Price/Book Ratio 6.91
PEG -3.32
Revenue (TTM) $339.89M
YoY Quarterly Revenue Growth 23.7%
Profit Margin 1.45%

What are your thoughts on ACIA?

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