iRobot Corp. (IRBT) Is Getting Too Hot to Handle

A century ago, who would have thought that robots will become an essential part of our daily lives. Thanks to robotic companies, such as iRobot Corp. (NASDAQ:IRBT), for designing robots that are empowering people to perform a range of tasks. iRobot, founded in 1990, manufactures robots primarily for consumer and defense markets. The Bedford, Massachusetts-based company went public in November 2005 by pricing its shares at $24.

If we look at the company’s performance in 2020, its stock lost a substantial value in the first quarter. IRBT stock touched a low of around $33 in March amid supply chain disruptions due to the Covid-19 crisis. However, the stock bounced back in the second quarter, mainly helped by strong demand for its cleaning products.

The lockdown restrictions during the pandemic forced people to spend more time at home that drove the demand for its housecleaning robots. Overall, IRBT stock value increased nearly 80 percent during 2020. If we look at its financial performance, the company reported better-than-expected earnings and revenue in its previous quarterly report. It posted a profit of $35.5 million, or $1.24 per share for the fourth quarter, easily beating the consensus forecast of 52 cents per share. Revenue came in at $289.4 million, as compared to analysts’ average estimate of $259.4 million.

iRobot is off to a great start in 2021, with its share price already up about 44 percent on a year-to-date basis. IRBT stock closed higher for the eighth straight day on Monday on a massive volume of 10 million shares, hitting a 52-week high of $154.75. The recent stock rally follows a short squeeze that surprised many investors. IRBT stock is once again up nearly 3 percent in the pre-market trading Tuesday.