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Turtle Beach Unveils New Gaming Accessories

Is HEAR worth the risk for investors?

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Turtle Beach Corporation (NASDAQ:HEAR) is a global gaming accessory manufacturer. HEAR produces gaming headsets for Xbox One, PlayStation 4, PC, Nintendo Switch, and mobile devices. Turtle Beach’s ROCCAT brand also designs PC gaming products, including keyboards, mice, headsets, mousepads, and other PC accessories. At last glance, HEAR is trading down 7.1% at $17.94.

On March 9, Turtle Beach Corporation’s brands, Turtle Beach and ROCCAT, unveiled their all-new Scout Air and SYN Buds Air true wireless gaming earbuds. HEAR will launch both versions at retailers worldwide on March 21.

Turtle Beach stock has decreased about 28% year-over-year and HEAR is currently trading down a significant 50% since peaking at a more than six-year high of $38.70 last June. Additionally, shares of HEAR have dropped in price 17% year-to-date, but Turtle Beach stock is currently up 13% off of its 52-week low of $17.03 reached just earlier this month.

Moreover, Turtle Beach stock offers a fair valuation with HEAR trading at a forward price-earnings ratio of 17.83 and a price-sales ratio of 1.12. The gaming accessories name also holds $37.72 million in cash and $7.76 million in total debt on their balance sheet, which is excellent for a small cap company valued at $312 million. 

Analysts are looking optimistic toward this security, which could leave room for downgrades moving forward. Heading into today's trading, four of the five covering brokerages carried a "strong buy" recommendation on HEAR.

However, shorts have been piling on, with short interest up 13.1% during the past two reporting periods. This accounts for 10.5% of the stock's total available float, or nearly four days' worth of pent-up buying power.

 

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