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Source: istock, Summit Wireless Technologies

WISA Stock Rises on Q3 Update — Is It a Buy?

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On Nov. 10, WISA stock rose 70.4 percent after the company released its third-quarter business update. The company also provided its sales outlook for the fourth quarter. Is WISA stock a buy?

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What is Summit Wireless Technologies?

Summit Wireless Technologies provides wireless sound technology. The company works with leading consumer electronics brands and manufacturers like LG, Xbox, and Harman International, which is a division of Samsung. The technology company delivers immersive wireless sound experiences for high-definition content like music, sports, movies, gaming and esports, and more.

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Source: Summit Wireless Technologies Facebook
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Why is WISA stock going up?

On Nov. 10, WISA stock surged more than 70 percent after the company announced a 45 percent YoY sales growth in the third quarter. The company also reported a gross margin of 17.1 percent in the third quarter compared to 7.6 percent in the same quarter a year ago. As of Sept. 30, Summit Wireless Technologies had cash and cash equivalents of $9.1 million.

In the press release, Summit Wireless CEO Brett Moyer said, “All of WiSA’s performance metrics – membership, shipments, and website visitors - are gaining momentum. As leading indicators of Summit Wireless revenue, they give us confidence in our continued revenue growth in Q4 2020 especially as we enter the promising holiday season. Looking forward into 2021, we believe these trends will accelerate.”

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What is WISA’s stock price today?

WISA stock was down about 16.5 percent at $3.03 as of 7:19 a.m. ET in pre-market trading on Wednesday, Nov. 11. The stock rose 70.4 percent on Nov. 10 and closed at $3.63 with a market capitalization of $28.4 million. WISA stock has risen by 82.4 percent in the last five days, while it has fallen by 73.5 percent in the last year.

WISA stock is trading 81.7 percent below its 52-week high of $19.80 and 111 percent above its 52-week low of $1.72. Year-to-date, the stock had fallen by 70.3 percent as of Nov. 10.

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Source: Summit Wireless Technologies Facebook
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WISA stock on Stocktwits

WISA stock has become a major discussion point on Stocktwits. While some investors see the company's strong sales outlook for the fourth quarter as a good reason to buy WISA stock, others are bearish and expect the stock to fall.

What is WISA’s stock forecast?

Currently, WISA stock is being tracked by only one Wall Street analyst. The analyst has a buy rating with a target price of $5. The target price represents a potential upside of 38 percent.

WISA stock is a buy right now based on the strong growth outlook. The shares of the wireless sound technology provider should be closely monitored as millions of people stay home amid the COVID-19 pandemic. The company expects to report a 100 percent YoY sales growth in the fourth quarter.

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