Avinger Inc.

Avinger, Inc. (NASDAQ: AVGR) is a medical device company operating in the commercial phase. The company specializes in creating, manufacturing, and selling catheter-based systems that use real-time imaging to assist physicians in the minimally invasive treatment of patients suffering from peripheral artery disease (PAD). Additionally, they offer the Panther is family of catheters, an image-guided atherectomy system that enables physicians to remove arterial plaque in PAD patients.

Recent Financial and Business Updates:

• Second Quarter Income Statement Review:
  • The company generated USD2.0 million in revenue, with a gross margin of 30%.
  • In comparison, during the first quarter of 2023, the gross margin was also 30%, but it was slightly higher at 34% in the first quarter of 2022 and 31% in the second quarter of 2022.
  • Operating expenses for the second quarter of 2023 decreased to USD4.3 million, down from USD4.9 million in the first quarter of 2023 and USD4.4 million in the second quarter of 2022, indicating the company's commitment to maintaining an efficient cost structure.
  • The net loss and comprehensive loss in the second quarter of 2023 amounted to USD4.2 million.
  • In terms of Adjusted EBITDA, a non-GAAP financial measure mentioned in this press release, there was an improvement, with a loss of USD3.4 million in the second quarter of 2023.
• Balance Sheet Review:
  • Total assets amounted to USD16.94 million as on June 30, 2023.
  • Total current liabilities amounted to USD22.443 million as on June 30, 2023.
• Business Update:
  • The company has officially launched its Tigereye® ST, the next-generation system for image-guided crossing of chronic total occlusions (CTOs). With the initiation of full commercial launch, all current and prospective accounts can now order the Tigereye ST device.
  • Before going into full commercial operation, Avinger initiated a restricted introduction of Tigereye ST at 11 medical centers in the United States. During this phase, approximately 50 CTO procedures were carried out using Tigereye ST, involving the participation of 13 physicians.
  • Avinger, Inc (AVGR) has done a one-for-fifteen (1-15) reverse split of its Common Stock. The reverse stock split became effective on Wednesday, September 13, 2023.
    

Technical Observation (on the daily chart)

The Relative Strength Index (RSI) over a 14-day period is currently in the oversold zone at levels of 71.52, with expectations of some consolidation or a healthy short-term correction before the continuation of the upward momentum. The stock has given a return of 210.90% over a period of three trading sessions, due to the announcement of commercialisation of its Tigereye ST. The current price is above both 21-period SMA and 50-period SMA indicating a short-term bullish momentum, with expectations of these SMAs acting as support levels, in case of correction in the stock price.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a “WATCH” rating is recommended for Avinger Inc. (NASDAQ: AVGR) based on the current price of USD12.81 as on September 20, 2023, at 8:10 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is September 20, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer

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