Harmonic (NASDAQ:HLIT) Shares Gap Down – What’s Next?

Harmonic Inc. (NASDAQ:HLIT)’s share price gapped down before the market opened on Friday . The stock had previously closed at $13.37, but opened at $12.82. Harmonic shares last traded at $12.88, with a volume of 81,253 shares traded.

Wall Street Analyst Weigh In

Several analysts have issued reports on HLIT shares. Barclays cut Harmonic from an “overweight” rating to an “equal weight” rating and dropped their target price for the company from $17.00 to $14.00 in a report on Thursday. Rosenblatt Securities cut their target price on Harmonic from $18.00 to $16.00 and set a “buy” rating for the company in a research note on Tuesday, October 29th. Needham & Company LLC reaffirmed a “buy” rating and issued a $18.00 price target on shares of Harmonic in a research note on Tuesday, October 29th. Raymond James lowered shares of Harmonic from a “strong-buy” rating to an “outperform” rating and reduced their price objective for the company from $17.00 to $14.00 in a report on Tuesday, October 29th. Finally, Northland Securities lowered their target price on shares of Harmonic from $16.00 to $14.00 and set an “outperform” rating for the company in a research note on Tuesday, October 29th. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $14.75.

Harmonic Stock Performance

The stock has a market capitalization of $1.47 billion, a PE ratio of 17.30 and a beta of 0.91. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.62 and a current ratio of 2.08. The firm’s 50 day moving average is $12.78 and its two-hundred day moving average is $13.15.

Harmonic (NASDAQ:HLIT) last announced its quarterly earnings data on Monday, October 28th. The communications equipment provider reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.09. Harmonic had a return on equity of 7.56% and a net margin of 13.62%. The business had revenue of $195.80 million for the quarter, compared to analysts’ expectations of $181.77 million. During the same period last year, the firm earned ($0.05) earnings per share. The company’s revenue for the quarter was up 53.9% compared to the same quarter last year. As a group, research analysts predict that Harmonic Inc. will post 0.52 earnings per share for the current year.

Institutional Trading of Harmonic

Hedge funds have recently added to or reduced their stakes in the company. GAMMA Investing LLC increased its position in shares of Harmonic by 117.6% in the 3rd quarter. GAMMA Investing LLC now owns 2,448 shares of the communications equipment provider’s stock valued at $36,000 after purchasing an additional 1,323 shares during the last quarter. CWM LLC raised its stake in Harmonic by 274.2% in the third quarter. CWM LLC now owns 8,439 shares of the communications equipment provider’s stock valued at $123,000 after buying an additional 6,184 shares in the last quarter. iSAM Funds UK Ltd purchased a new stake in Harmonic during the 3rd quarter worth about $166,000. Captrust Financial Advisors raised its position in shares of Harmonic by 14.9% during the 3rd quarter. Captrust Financial Advisors now owns 12,671 shares of the communications equipment provider’s stock worth $185,000 after acquiring an additional 1,647 shares in the last quarter. Finally, Versor Investments LP purchased a new stake in Harmonic during the third quarter worth approximately $227,000. Institutional investors and hedge funds own 99.38% of the company’s stock.

About Harmonic

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.