Corsair Gaming started as Corsair Microsystems Inc in 1994. Back then, the company was focusing on CPU cache modules.
Yet, the major success arrived in the 2000s, after switching the focus to high-performance random-access memory (RAM). Since then, the company has been expanding its portfolio of products in the quest to satisfy every whim of ever-demanding computer enthusiasts.
Eventually, Corsair Gaming made an IPO debut at a valuation of $1.3 billion. The stock trades under the ticker CRSR on the Nasdaq stock exchange.
CRSR Stock Price
After the IPO debut, the stock surged over 250% over 2 months. This unsustainable parabolic run eventually came to an end in February 2021. Since then, the stock has been ranging, but it did test the support level at $25.
Extreme volatility is not uncommon for IPOs, as is an example with Robinhood (NASDAQGS: HOOD), which surged over 100% within days of its debut before giving back most of the gains.
CRSR Stock Forecast
While nobody can predict the future, few popular metrics do show us that CRSR might be a good value at this price.
- Price-to-earnings ratio (P/E): CRSR is currently trading at a 17x, which is below the U.S. Tech Industry average (23.2x)
- Price-to-earnings growth ratio (PEG): CRSR is currently at a PEG value of 0.9. Stocks under 1 are good value.
- Future return on equity (ROE): Forecast at over 30% within 3 years, which is much higher than the industry average of 10.2%.
Finally, according to multiple analysts, earnings and growth revenue forecasts have been positive, as evident from the graph below.
Corsair Gaming: Earnings and Revenue Growth Forecasts; Source: Simply Wall St
CRSR Stock News
While the latest quarterly earnings showed respectable revenue growth at 24.3% year-on-year, the company missed on adjusted EPS of $0.36 (versus consensus of $0.39).
Corsair Gaming finds itself in an ungrateful situation as a computer peripheral stock, looking for growth during the pandemic. The ongoing crisis is negatively impacting the global supply chain, but especially critical components like semiconductors. Once the worldwide shortage of graphics cards is resolved, you can expect sales to pick up as PC enthusiasts will rush to update or replace their systems.
Yet, some analysts have a different outlook. For example, Credit Suisse recently downgraded the stock from Outperform to Neutral, lowering the price target from $43 to $31.
Meanwhile, the company continues entrenching itself in gaming, this time partnering with Ubisoft to provide an immersive experience for the latest installment of the Far Cry franchise. By using the Corsair iCUE software, players will experience in-game events in real-time through the hardware peripherals. Far Cry sold over 50 million copies as a franchise, with the latest installment arriving on October 7.
How to Buy Corsair Gaming Stock
Follow these steps if you want to buy CRSR.
Step 1: Pick a brokerage.
The easiest and the most convenient way to buy a stock is through a brokerage — a regulated intermediary between you (the investor) and the stock market. In the past, this was a lengthy and sometimes expensive process, but nowadays you can buy and sell stocks through web platforms or even your phone in just a few seconds.
If you are a first-time investor, check out our broker comparison table below.
Step 2: Decide how many shares you want.
The number of shares to buy depends on share price, portfolio size and risk management strategy. As CRSR currently trades around $30, there is no need to prioritize a broker that offers fractional share ownership. However, that might come in handy if you plan to invest in stocks with high share prices like, for example, Amazon (NASDAQ: AMZN).
Step 3: Choose your order type.
There is more than one way to instruct your broker on how to buy shares. So, it is necessary to understand the basics before investing. It is recommended to practice on the broker’s demo platform before executing the first live trade.
- Market order: The most straightforward way to trade on the market. This order instructs your broker to buy or sell shares immediately, regardless of price. It is the fastest way, but you might get a slightly worse entry price.
- Limit order: This order will work only at a certain level or better. For example, if the CRSR price is $29.50 and you put in a limit order at $29, it will execute only if the price falls and reaches that level. This order is perfect for dealing with smaller cap stocks where liquidity can be an issue.
- Bid: This is the greatest price a buyer is willing to pay at the moment.
- Ask: This is the smallest price at which the seller is selling at the moment.
- Spread: This is the difference between the bid and the ask. For example, if the bid for CRSR is $29.30, and the ask is $29.33, then the spread is $0.03. A narrow spread is a sign of good liquidity in the market.
Step 4: Execute your trade.
After you have selected and executed the trade, the broker will process the order for you. Keep an eye out for your broker’s statements because you officially own the shares when the order has been filled.
CRSR on Benzinga Pro
Observing the CRSR chat, you will notice that the stock first established a support level at $36, during the first months of this year, before moving down and spending the majority of the year in a relatively tight range.
CRSR Stock Chart, Source: Benzinga Pro
After acting as a support, the $36 level is now acting as resistance and it will be a crucial level to observe in the future. Yet, the stock first needs to recapture the $32 level, which will be an intermediate resistance.
A Thematic Opportunity
Corsair Gaming falls into the category of promising thematic investments — companies that benefit from the shift in trends. Currently, these include e-sports and streaming, trends that are threatening the conventional ways of entertainment. It is also promising to see that the company continues to innovate, currently exploring the lucrative webcam segment through its subsidiary products.
Short-term speculators should pay attention to the above key levels and observe how the price reacts, while long-term investors can visit Benzinga Pro to crunch through the fundamentals.
Either way, long periods of ranging usually create extensive breakouts, so exciting times will be coming for CRSR speculators.
Frequently Asked Questions
What does Corsair Gaming do?
Corsair Gaming develops and manufactures high-performance computer peripheral gear and hardware. The company targets gamers, content creators and PC enthusiasts. In recent years the company expanded to streaming equipment and ambient lightning to address this growing segment.
The company also operates subsidiary brands: Elgato (studio equipment and accessories), SCUF Gaming (custom controllers for competitive gamers) and ORIGIN PC (builder of custom computers).
Who owns Corsair?
These 4 types of shareholders own Corsair:
- Venture capital / private equity firms: 57.8%
- General public: 25.5%
- Institutions: 13.2%
- Individual Insiders: 3.5%
EagleTree Capital is the largest shareholder, controlling a 57.76% stake, currently worth $1.6 billion.