NeoPhotonics (NYSE:NPTN) Rating Lowered to Sell at Zacks Investment Research

NeoPhotonics (NYSE:NPTN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Wednesday, Zacks.com reports.

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. “

Other equities research analysts also recently issued research reports about the company. ValuEngine raised NeoPhotonics from a “hold” rating to a “buy” rating in a research report on Thursday, April 4th. MKM Partners initiated coverage on NeoPhotonics in a research report on Monday, April 29th. They set a “buy” rating and a $9.00 price target for the company. Northland Securities reissued a “buy” rating and set a $11.00 price target on shares of NeoPhotonics in a research report on Friday, May 3rd. Needham & Company LLC downgraded NeoPhotonics from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 17th. Finally, Rosenblatt Securities reissued a “buy” rating on shares of NeoPhotonics in a research report on Friday, May 17th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and four have assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $7.91.

NeoPhotonics stock opened at $4.37 on Wednesday. The company has a quick ratio of 1.51, a current ratio of 1.98 and a debt-to-equity ratio of 0.45. The business’s fifty day moving average is $4.10. The stock has a market capitalization of $203.07 million, a P/E ratio of -5.91 and a beta of 1.68. NeoPhotonics has a fifty-two week low of $3.26 and a fifty-two week high of $9.48.

NeoPhotonics (NYSE:NPTN) last released its quarterly earnings results on Thursday, May 2nd. The semiconductor company reported ($0.19) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.08). The company had revenue of $79.40 million for the quarter, compared to analysts’ expectations of $79.99 million. NeoPhotonics had a negative return on equity of 17.55% and a negative net margin of 11.85%. The business’s quarterly revenue was up 15.7% on a year-over-year basis. During the same period in the previous year, the business posted ($0.33) EPS. Research analysts anticipate that NeoPhotonics will post -0.8 earnings per share for the current fiscal year.

In other NeoPhotonics news, COO Chiyue Cheung sold 12,000 shares of the business’s stock in a transaction dated Monday, May 13th. The stock was sold at an average price of $5.79, for a total transaction of $69,480.00. Following the transaction, the chief operating officer now owns 12,000 shares in the company, valued at $69,480. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Elizabeth Lynne Eby acquired 50,000 shares of NeoPhotonics stock in a transaction on Wednesday, May 29th. The shares were bought at an average price of $3.57 per share, for a total transaction of $178,500.00. The disclosure for this purchase can be found here. Insiders own 16.00% of the company’s stock.

Institutional investors and hedge funds have recently modified their holdings of the business. Cavalry Management Group LLC acquired a new position in shares of NeoPhotonics in the fourth quarter worth about $2,959,000. Hall Kathryn A. acquired a new position in shares of NeoPhotonics in the first quarter worth about $95,000. Hamilton Lane Advisors LLC acquired a new position in shares of NeoPhotonics in the first quarter worth about $2,166,000. Acadian Asset Management LLC acquired a new position in shares of NeoPhotonics in the first quarter worth about $1,128,000. Finally, Tairen Capital Ltd acquired a new position in shares of NeoPhotonics in the fourth quarter worth about $389,000. Institutional investors own 78.35% 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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