Aeluma’s Price Target Soars, But Earnings Stay in the Red

Forward-Looking Analysis

Aeluma’s Q2 2026 earnings expectations remain unquantified, but analyst sentiment highlights a $25.50 consensus price target (69.3% upside from $15.06). One analyst downgraded the stock in February 2026, while no upgrades were reported. The company’s trailing P/E ratio is negative (-55.78), and its P/B ratio (13.33) suggests potential overvaluation. Short interest decreased by 12.32%, signaling improving sentiment. Gross profit in Q1 2026 was $684,000, but net losses persisted ($1.49M, -$0.09 EPS). Analysts emphasize the stock’s high momentum score (91) and ultra-expensive valuation (AAII F grade).

Historical Performance Review

Aeluma reported Q1 2026 revenue of $1.39M, net income of -$1.49M, and EPS of -$0.09. Gross profit totaled $684,000, but the company’s trailing twelve-month net margin remains negative (-67.97%). The stock closed at $15.06 on February 6, 2026, down 12.29% year-to-date.

Additional News

Recent insider selling includes Mark Tompkins’ $507,495 sale of 25,000 shares and $8.03M in insider sales since November 2025. Short interest fell to 9.98% of float, and the stock’s relative price strength (21.37%) remains strong. Analysts note a “Hold” rating with mixed sentiment (2 buy, 1 sell ratings).

Summary & Outlook

Aeluma’s financial health remains challenged by consistent net losses and high valuation metrics. Growth hinges on improving gross margins and addressing negative net margins. The $25.50 price target offers upside, but recent analyst downgrades and insider selling signal caution. Short-term momentum is strong, but long-term risks include overvaluation and operational inefficiencies. Investors should monitor Q2 results for signs of margin improvement or cost control, though bearish pressures persist amid weak profitability.