Audinate Group Ltd (ASX: AD8) shares are roaring higher on Friday despite having a rough few days.
At the time of writing, the Audinate share price is up 20.29% to $2.105.
That's a big move, but it follows a heavy sell-off. The ASX tech stock hit a 52-week low of $1.71 yesterday after falling more than 10% earlier in the week.
Even after today's jump, Audinate shares are still down almost 50% since the start of 2026 and around 70% lower than this time last year.
So, what's going on?
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Bargain hunters step back in
Despite the gain, there hasn't been any new price-sensitive announcement from Audinate today.
Instead, the latest move looks more like some investors are returning after the stock's heavy fall.
The company's share price has been under pressure for months as investors have worried about slower growth, weaker earnings, and higher costs.
Audinate develops and sells digital audio-visual networking products, mainly through its Dante platform. Dante is used to send audio and video signals across computer networks and is used in more than 3,800 networked audio and video products worldwide.
The company services areas such as live music, events, recording studios, commercial installations, and broadcast.
But while Audinate has a unique market position, the market has become less willing to pay high prices for growth companies that aren't delivering strong earnings.
What did the latest result show?
Audinate's first-half result in February showed revenue of US$21.1 million, up 12% on the prior corresponding period. Gross profit rose to US$17.4 million, while its gross margin held at 82.6%.
The company also reported 66 Dante design wins during the half, an 8% increase on the prior period.
However, the market was more focused on costs and earnings. Audinate reported an underlying EBITDA loss of US$2.3 million, and higher operating expenses took some of the shine off the return to revenue growth.
Broker targets still sit well above today's price
Broker views on Audinate remain mixed after the recent fall.
Morgan Stanley cut its target price to $3 but kept an overweight rating, while UBS reduced its target to $6.10 but remained positive on the stock.
Macquarie has taken a more cautious stance, with a neutral rating and a reduced price target of $3.20.
Even though the lower targets remain well above the current share price, that doesn't mean the stock is suddenly out of trouble.
Audinate still needs to show that its revenue growth can turn into better earnings.
Then again, it's not surprising to see some bargain hunting after the stock's heavy fall this year.
