Harmonic (NASDAQ:HLIT) Shares Gap Up After Strong Earnings

Harmonic Inc. (NASDAQ:HLIT) shares gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $10.67, but opened at $11.29. Harmonic shares last traded at $10.9450, with a volume of 299,884 shares trading hands.

The communications equipment provider reported $0.12 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.05 by $0.07. The company had revenue of $142.38 million for the quarter, compared to analysts’ expectations of $127.94 million. Harmonic had a net margin of 9.96% and a return on equity of 17.83%. The business’s revenue was down 27.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.26 EPS. Harmonic has set its Q4 2025 guidance at 0.060-0.120 EPS.

Analyst Ratings Changes

A number of brokerages recently issued reports on HLIT. Wolfe Research began coverage on Harmonic in a report on Tuesday, July 8th. They issued an “underperform” rating on the stock. Needham & Company LLC increased their target price on Harmonic from $12.00 to $15.00 and gave the stock a “buy” rating in a report on Tuesday. Barclays cut their target price on Harmonic from $10.00 to $8.00 and set an “equal weight” rating on the stock in a report on Tuesday, July 29th. Rosenblatt Securities reiterated a “buy” rating and issued a $14.00 target price on shares of Harmonic in a report on Tuesday. Finally, Wall Street Zen cut Harmonic from a “buy” rating to a “hold” rating in a report on Saturday, August 2nd. Three investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $12.38.

Institutional Investors Weigh In On Harmonic

A number of hedge funds have recently made changes to their positions in HLIT. Amalgamated Bank boosted its holdings in Harmonic by 3.5% in the 3rd quarter. Amalgamated Bank now owns 33,186 shares of the communications equipment provider’s stock worth $338,000 after buying an additional 1,116 shares during the period. Arizona State Retirement System increased its position in shares of Harmonic by 4.2% during the first quarter. Arizona State Retirement System now owns 33,392 shares of the communications equipment provider’s stock valued at $320,000 after buying an additional 1,344 shares during the period. CWM LLC increased its position in shares of Harmonic by 5.1% during the third quarter. CWM LLC now owns 28,262 shares of the communications equipment provider’s stock valued at $288,000 after buying an additional 1,376 shares during the period. Cresset Asset Management LLC increased its position in shares of Harmonic by 16.5% during the first quarter. Cresset Asset Management LLC now owns 11,721 shares of the communications equipment provider’s stock valued at $112,000 after buying an additional 1,660 shares during the period. Finally, Significant Wealth Partners LLC increased its position in shares of Harmonic by 15.3% during the third quarter. Significant Wealth Partners LLC now owns 13,687 shares of the communications equipment provider’s stock valued at $139,000 after buying an additional 1,816 shares during the period. 99.38% of the stock is currently owned by institutional investors.

Harmonic Stock Performance

The company has a 50-day moving average price of $10.17 and a two-hundred day moving average price of $9.51. The stock has a market capitalization of $1.19 billion, a P/E ratio of 17.68 and a beta of 1.01. The company has a quick ratio of 1.58, a current ratio of 1.99 and a debt-to-equity ratio of 0.27.

Harmonic Company Profile

Harmonic Inc, together with its subsidiaries, provides broadband solutions worldwide. The company operates through Broadband and Video segments. The Broadband segment sells broadband access solutions and related services, including cOS software-based broadband access solutions to broadband operators; and cOS central cloud services, a subscription service for cOS customers.