NeoPhotonics (NYSE:NPTN) Lifted to Buy at Zacks Investment Research

NeoPhotonics (NYSE:NPTNGet Rating) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Friday, Zacks.com reports. The firm currently has a $17.00 price objective on the semiconductor company’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 12.96% from the company’s previous close.

According to Zacks, “NeoPhotonics Corporation is engaged in the design and manufacture of photonic integrated circuit, or PIC, based modules and subsystems for bandwidth-intensive, high-speed communications networks. Products offered by the Company includes high-speed products that enable data transmission at 10Gbps, 40Gbps and 100Gbps, agility products such as ROADMs that dynamically allocate bandwidth to adjust for volatile traffic patterns, and access products that provide high-bandwidth connections to more devices and people over fixed and wireless networks. “

Several other equities research analysts have also recently weighed in on the stock. StockNews.com initiated coverage on shares of NeoPhotonics in a research report on Thursday, March 31st. They set a “hold” rating for the company. Rosenblatt Securities began coverage on shares of NeoPhotonics in a research report on Thursday, March 24th. They issued a “neutral” rating and a $16.00 target price for the company. Seven investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $16.00.

Shares of NPTN opened at $15.05 on Friday. The stock has a market capitalization of $804.78 million, a P/E ratio of -23.52 and a beta of 0.82. The company has a quick ratio of 1.95, a current ratio of 2.57 and a debt-to-equity ratio of 0.36. The firm has a fifty day simple moving average of $15.17 and a two-hundred day simple moving average of $14.88. NeoPhotonics has a twelve month low of $7.95 and a twelve month high of $16.14.

NeoPhotonics (NYSE:NPTNGet Rating) last announced its quarterly earnings results on Thursday, April 28th. The semiconductor company reported $0.04 earnings per share for the quarter, beating the consensus estimate of ($0.03) by $0.07. The business had revenue of $89.27 million during the quarter, compared to analysts’ expectations of $82.02 million. NeoPhotonics had a negative net margin of 10.46% and a negative return on equity of 14.23%. The firm’s revenue for the quarter was up 46.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.15) EPS. Sell-side analysts expect that NeoPhotonics will post -0.02 EPS for the current fiscal year.

In other news, CEO Timothy Storrs Jenks sold 17,040 shares of the firm’s stock in a transaction dated Wednesday, April 13th. The shares were sold at an average price of $15.16, for a total value of $258,326.40. Following the completion of the sale, the chief executive officer now directly owns 492,916 shares of the company’s stock, valued at approximately $7,472,606.56. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Over the last ninety days, insiders sold 50,094 shares of company stock valued at $765,208. Corporate insiders own 5.30% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BCK Capital Management LP lifted its position in NeoPhotonics by 197.5% during the 1st quarter. BCK Capital Management LP now owns 259,809 shares of the semiconductor company’s stock valued at $3,952,000 after acquiring an additional 172,467 shares during the period. Wolverine Asset Management LLC lifted its position in NeoPhotonics by 34.6% during the 1st quarter. Wolverine Asset Management LLC now owns 101,198 shares of the semiconductor company’s stock valued at $1,539,000 after acquiring an additional 26,039 shares during the period. Millrace Asset Group Inc. lifted its position in NeoPhotonics by 0.9% during the 1st quarter. Millrace Asset Group Inc. now owns 205,155 shares of the semiconductor company’s stock valued at $3,120,000 after acquiring an additional 1,774 shares during the period. Victory Capital Management Inc. purchased a new position in NeoPhotonics during the 1st quarter valued at about $325,000. Finally, Thoroughbred Financial Services LLC purchased a new position in NeoPhotonics during the 1st quarter valued at about $167,000. 85.55% of the stock is owned by institutional investors.

NeoPhotonics Company Profile (Get Rating)

NeoPhotonics Corporation develops, manufactures, and sells optoelectronic products that transmit and receive high speed digital optical signals for cloud and hyperscale data center internet content provider and telecom networks. It offers transmitter and receiver components, and coherent modules, as well as switching products for 400G and optical transmission applications over distances of approximately 2 to 2,000 kilometers; ultra-narrow linewidth tunable lasers; electro-absorptively modulated lasers; distributed feedback lasers; component lasers; and integrated coherent receivers and modulators.

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