NeoPhotonics (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 research note issued on Tuesday.

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. “

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Several other brokerages have also issued reports on NPTN. Rosenblatt Securities set a $13.00 target price on NeoPhotonics and gave the stock a “buy” rating in a research report on Saturday, March 10th. Northland Securities reaffirmed a “buy” rating and set a $10.50 target price on shares of NeoPhotonics in a research report on Monday, March 19th. ValuEngine raised NeoPhotonics from a “sell” rating to a “hold” rating in a research report on Friday, March 9th. Piper Jaffray lowered NeoPhotonics from an “overweight” rating to a “neutral” rating in a research report on Monday, January 29th. Finally, Needham & Company LLC reiterated a “strong-buy” rating and set a $9.00 price target (up from $8.00) on shares of NeoPhotonics in a report on Friday, March 2nd. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of “Hold” and an average target price of $9.00.

Shares of NeoPhotonics opened at $6.09 on Tuesday, Marketbeat reports. The firm has a market cap of $259.33 million, a P/E ratio of -5.54 and a beta of 0.94. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.77 and a quick ratio of 1.29. NeoPhotonics has a 12-month low of $5.95 and a 12-month high of $6.31.

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

A number of institutional investors have recently modified their holdings of NPTN. Virtu Financial LLC acquired a new stake in NeoPhotonics during the 4th quarter worth about $131,000. Raymond James & Associates acquired a new stake in NeoPhotonics during the 4th quarter worth about $160,000. Princeton Capital Management LLC acquired a new stake in NeoPhotonics during the 4th quarter worth about $195,000. Wells Fargo & Company MN grew its holdings in NeoPhotonics by 77.8% during the 3rd quarter. Wells Fargo & Company MN now owns 43,617 shares of the semiconductor company’s stock worth $242,000 after acquiring an additional 19,088 shares during the period. Finally, JPMorgan Chase & Co. grew its holdings in NeoPhotonics by 485.2% during the 1st quarter. JPMorgan Chase & Co. now owns 57,695 shares of the semiconductor company’s stock worth $395,000 after acquiring an additional 47,836 shares during the period. Hedge funds and other institutional investors own 73.83% of the company’s stock.

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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