Is it Time to Buy Audinate Group Stock After 28% Correction from its High.

Most of the investors sell a stock when it is continuously declining. However, quite often, if the decline is not because of any fundamental reason, these stocks seek a reversal and offer another chance to invest in it.

Before applying their mind on should I buy stock, the investors need to differentiate between a retracement and a reversal, often identified by price action patterns.

Audinate Group Limited (ASX: AD8) ia among Top ASX Stocks, that

has made significant strides in expanding its Dante video solutions among OEM customers. They now have 50 manufacturers licensing Dante video, up from 30 a year ago, and recently launched 66 new video products at the Integrated Systems Europe (ISE) tradeshow, tripling the previous year's offerings. Ahead of schedule, Audinate achieved its FY24 goal of doubling the video ecosystem to over 30,000 units deployed.

The Audio-Visual (AV) market is currently valued at around US$285 billion as of 2022, and it is poised for substantial growth. Projections suggest the industry will expand by nearly 41% over the next six years, reaching approximately US$402 billion by 2028.

Source : Company Reports

Audinate Group Limited achieved impressive financial results for the first half of fiscal year 2024, ending 31 December 2023.

Revenue soared by 47.7% to US$30.4 million, compared to US$20.6 million in the previous year's corresponding period. This growth was bolstered by a 51.1% increase in Australian dollar (AUD) revenue, reaching A$46.6 million, aided by favorable AUD/USD currency dynamics.

Audinate's operational performance was notably strong, reflected in EBITDA of A$10.1 million, marking a notable 137% improvement from the previous year. Net profit after tax rebounded significantly to A$4.7 million, a turnaround from a loss of A$0.4 million in the prior period. Operating cash flow strengthened to A$11.8 million, up from A$1.8 million in 1H23, underscoring the company's efficient financial management.

The company's balance sheet remained robust, boasting a substantial A$111.7 million in cash and term deposits. Its operating cash flow was $11.8m rising from $1.8m pcp,? Positive free cash flow being $3.4m compared to ($6.8m) negative free cash flow pcp, and remarkably, more than 100% cash conversion in 1H24

The stock is currently displaying promising technical signals across both monthly and weekly timeframes, suggesting a bullish trend.?Over the past year, Audinate has further solidified its leadership in audio networking technology, with a substantial increase in both the number of products and manufacturers adopting Dante technology compared to competitors.?

Audinate's adoption in audio networking technology surpasses that of its closest competitor by a substantial margin of 12 times. This positions Audinate Group Stock strongly to capitalize on the expanding market demand and maintain its growth trajectory in the AV industry.?