NeoPhotonics (NPTN) Downgraded by Zacks Investment Research

NeoPhotonics (NYSE:NPTN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday, May 15th.

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 research firms also recently weighed in on NPTN. B. Riley reaffirmed a “neutral” rating and issued a $5.75 price target (up from $5.00) on shares of NeoPhotonics in a research note on Friday, March 2nd. ValuEngine upgraded shares of NeoPhotonics from a “sell” rating to a “hold” rating in a report on Monday, May 14th. Rosenblatt Securities set a $13.00 price objective on shares of NeoPhotonics and gave the company a “buy” rating in a report on Wednesday, May 9th. Piper Jaffray Companies cut shares of NeoPhotonics from an “overweight” rating to a “neutral” rating in a report on Monday, January 29th. Finally, Needham & Company LLC reiterated a “strong-buy” rating and set a $9.00 price objective (up from $8.00) on shares of NeoPhotonics in a report on Friday, March 2nd. Two analysts have rated the stock with a sell rating, six have assigned a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $9.00.

NYSE NPTN opened at $6.71 on Tuesday. NeoPhotonics has a fifty-two week low of $4.56 and a fifty-two week high of $9.78. The company has a quick ratio of 1.29, a current ratio of 1.77 and a debt-to-equity ratio of 0.26. The firm has a market capitalization of $290.97 million, a PE ratio of -6.10 and a beta of 0.94.

NeoPhotonics (NYSE:NPTN) last posted its quarterly earnings results on Tuesday, May 8th. The semiconductor company reported ($0.33) earnings per share for the quarter, missing the consensus estimate of ($0.26) by ($0.07). NeoPhotonics had a negative net margin of 20.72% and a negative return on equity of 26.15%. The company had revenue of $68.59 million during the quarter, compared to the consensus estimate of $69.65 million. During the same period last year, the firm posted ($0.25) earnings per share. The company’s revenue for the quarter was down 4.3% on a year-over-year basis. research analysts predict that NeoPhotonics will post -0.86 earnings per share for the current fiscal year.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Virtu Financial LLC purchased a new position in NeoPhotonics during the fourth quarter worth about $131,000. Levin Capital Strategies L.P. purchased a new position in NeoPhotonics during the first quarter worth about $137,000. Raymond James & Associates purchased a new position in NeoPhotonics during the fourth quarter worth about $160,000. Princeton Capital Management LLC purchased a new position in NeoPhotonics during the fourth quarter worth about $195,000. Finally, Wells Fargo & Company MN boosted its holdings in NeoPhotonics by 77.8% during the third quarter. Wells Fargo & Company MN now owns 43,617 shares of the semiconductor company’s stock worth $242,000 after purchasing an additional 19,088 shares during the last quarter. Hedge funds and other institutional investors own 82.61% of the company’s stock.

NeoPhotonics Company Profile

NeoPhotonics Corporation develops, manufactures, and sells optoelectronic products that transmit, receive, and switch high speed digital optical signals for communications networks. It offers high speed products, including transmitter, receiver, and switching products for 100G (gigabits per second) and optical transmission applications over distances of 2 to 2,000 kilometers; optical components for coherent systems, including narrow linewidth tunable transmit and local oscillator lasers (NLW-ITLA) that generate ultra-pure wavelength or color for coherent transmission, as well as coherent micro-modulators, which encode the information on the intensity and phase of the optical beam; and integrated coherent receivers (ICRs) that decode the phase and polarization encoded coherent signals.

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