NeoPhotonics (NYSE:NPTN) Upgraded to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of NeoPhotonics (NYSE:NPTN) from a hold rating to a buy rating in a research note issued to investors on Friday morning, Zacks.com reports. They currently have $6.75 target price on the semiconductor company’s stock.

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. “

A number of other analysts have also weighed in on the stock. ValuEngine raised shares of NeoPhotonics from a hold rating to a buy rating in a research note on Wednesday, October 2nd. MKM Partners raised shares of NeoPhotonics from a neutral rating to a buy rating and upped their price objective for the stock from $5.00 to $7.00 in a research note on Tuesday, August 6th. Rosenblatt Securities reaffirmed a buy rating and issued a $10.00 price objective on shares of NeoPhotonics in a research note on Tuesday, July 16th. Northland Securities reaffirmed a buy rating on shares of NeoPhotonics in a research note on Tuesday, August 6th. Finally, B. Riley lowered shares of NeoPhotonics from a buy rating to a neutral rating and set a $6.50 price objective for the company. in a research note on Wednesday, September 18th. Three investment analysts have rated the stock with a hold rating and six have given a buy rating to the stock. The company currently has a consensus rating of Buy and an average price target of $7.89.

Shares of NPTN opened at $6.11 on Friday. The firm has a market capitalization of $292.51 million, a P/E ratio of -8.26 and a beta of 1.64. NeoPhotonics has a 12-month low of $3.26 and a 12-month high of $9.48. The company has a current ratio of 2.10, a quick ratio of 1.61 and a debt-to-equity ratio of 0.42. The firm has a fifty day moving average price of $6.23 and a 200-day moving average price of $5.47.

NeoPhotonics (NYSE:NPTN) last issued its earnings results on Monday, August 5th. The semiconductor company reported ($0.08) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.17) by $0.09. NeoPhotonics had a negative net margin of 10.86% and a negative return on equity of 14.40%. The firm had revenue of $81.69 million during the quarter, compared to analyst estimates of $76.91 million. During the same period in the previous year, the firm earned ($0.19) earnings per share. The business’s revenue was up .7% on a year-over-year basis. Analysts predict that NeoPhotonics will post -0.43 earnings per share for the current year.

A number of large investors have recently added to or reduced their stakes in NPTN. D. E. Shaw & Co. Inc. lifted its stake in NeoPhotonics by 244.0% in the second quarter. D. E. Shaw & Co. Inc. now owns 978,374 shares of the semiconductor company’s stock worth $4,090,000 after acquiring an additional 693,923 shares during the period. Nuveen Asset Management LLC purchased a new stake in shares of NeoPhotonics during the second quarter valued at about $2,398,000. AlphaOne Investment Services LLC purchased a new stake in shares of NeoPhotonics during the second quarter valued at about $1,937,000. Vanguard Group Inc. lifted its position in shares of NeoPhotonics by 17.1% during the second quarter. Vanguard Group Inc. now owns 2,383,040 shares of the semiconductor company’s stock valued at $9,961,000 after buying an additional 347,176 shares during the last quarter. Finally, Panagora Asset Management Inc. purchased a new stake in shares of NeoPhotonics during the second quarter valued at about $1,421,000. 73.08% of the stock is owned by institutional investors.

About NeoPhotonics

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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