BDX - AngioDynamics: A Story To Monitor

2024-05-14 14:27:46 ET

Summary

• AngioDynamics, Inc. is struggling for profitability and its stock hit an all-time low of $5.26 on March 25th, 2024.
• However, the company is undergoing a restructuring, eliminating its manufacturing capabilities and focusing on its profitable medical technology business.
• Despite the challenges, the company has no debt, an increasingly higher margin portfolio, and insider buying, making its valuation potentially compelling.
• An analysis around AngioDynamics follows in the paragraphs below.

Shares of medical device concern AngioDynamics, Inc. ( ANGO ) fell to an all-time low of $5.26 on March 25, 2024, as it struggles for profitability in the middle of a restructuring. The company hasn’t turned a profit since 2017, and isn’t projected to do so until FY27, after it exits the business of manufacturing its own devices. However, with no debt, an increasingly higher margin portfolio as it divests and discontinues lower margin products, and a price-to-sales of less than 0.7 net of cash, the recent insider buying merited a deeper dive. An analysis follows below....

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