Transportation Innovation

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>>> Arcimoto, Inc. (FUV) - Strong Insider Buying


Yahoo Finance

July 6, 2020


https://finance.yahoo.com/news/3-stocks-flashing-signs-strong-144618221.html


The next company on our list, Arcimoto, is an Oregon-based ‘green economy’ player. Arcimoto has developed, and is marketing, a series of low-weight, high-efficiency electric vehicles. The company’s name for the line, Fun Electric Vehicle, is also the source of its stock ticker, FUV.

Over the past year, Arcimoto has expanded its EV designs to include delivery vehicles and rental fleet options. The company was forced to suspend manufacturing operations during the coronavirus crisis, but has since reopened its assembly facilities.

In a move to raise capital and expedite recovery from the pandemic’s impact, Arcimoto put 1.7 million shares of common stock on the market at the end of June. The move grossed $8.5 million, the proceeds of which will be used for general working capital, including acceleration of manufacture and delivery of pre-ordered vehicles.

The offering was an opportunity for insiders, as well as the public, and three company officers made significant purchases in recent days. Mark Frohnmayer, company President, bought 78,531 shares for an estimated $334,000, and two board members, Jesse Grant Eisler and Joshua Scherer, also made six-figure purchases. These were informative buys, the first in a year, and have moved the company’s insider sentiment far more positive than its sector average.

Amit Dayal, 4-star analyst with H.C. Wainwright, is bullish on Arcimoto, rating the stock a Buy and writing, “We once again reiterate the 'multiple shots on goal' aspect of the company's market positioning, where one vehicle platform has the flexibility to serve multiple applications and markets. Accordingly, pushouts in vacation oriented sales should, in our opinion, be compensated with pickup in delivery applications... The company's cash burn was lowered during the lockdown but should be expected to ramp with production picking up.”

Dayal’s $7 price target suggests that FUV has room for 3% growth over the next 12 months.

Recent share appreciation – the stock rose an eye-opening 378% in Q2 – has pushed FUV above the average price target, too fast for most analysts to adjust their outlooks. Shares are currently selling for $6.82, so the $5.38 average price target puts the downside potential at 21%. The Strong Buy analyst consensus rating is unanimous, based on 4 recent positive reviews.

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