What's Going On With iRobot Stock?

iRobot Corporation IRBT shares are trading higher Monday, and the stock is up more than 40% over the past five days. Here's a look at what's going on. 

What To Know:

IRobot shares have climbed after the company reported better-than-expected quarterly financial results last Tuesday. The company reported quarterly losses of $1.53 per share which beat the analyst consensus estimate of losses of $2.01 by 23.88%.

Quarterly sales came in at $150.014 million which beat the analyst consensus estimate of $144.976 million by 3.48%. 

The company sees second-quarter adjusted losses between $1.81 and $1.74 per share, versus the estimate of a loss of $1.38 per share, and revenue of between $1.67 million and $1.72 million, versus the $1.67.006 million estimate. 

IRobot also announced the appointment of Gary Cohen as the company's new CEO. 

“I am truly honored to be joining iRobot, a company with an iconic brand, a legacy of innovation, and a commitment to delighting customers around the world,” said Mr. Cohen. “I look forward to working with the board, the leadership team, and our employees across the company to reinvigorate the category, create value, bring new products to market, and continue building the future of consumer robotics.”

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Should I Sell My IRBT Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of iRobot have lost 62.73% year to date. This compares to the average annual return of -50.74%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. iRobot stock currently has an RSI of 84.41, indicating overbought conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

IRBT Price Action: According to Benzinga Pro, iRobot shares are up 18% at $13.31 at the time of publication Monday.

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