Harmonic (NASDAQ:HLIT) Hits New 52-Week Low – What’s Next?

Harmonic Inc. (NASDAQ:HLIT)’s share price hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $8.15 and last traded at $8.30, with a volume of 363179 shares changing hands. The stock had previously closed at $8.81.

Analyst Upgrades and Downgrades

HLIT has been the topic of several research reports. Needham & Company LLC decreased their price objective on shares of Harmonic from $18.00 to $14.00 and set a “buy” rating on the stock in a report on Tuesday, February 11th. Barclays decreased their price target on shares of Harmonic from $14.00 to $10.00 and set an “equal weight” rating on the stock in a research note on Tuesday, February 11th. Jefferies Financial Group began coverage on shares of Harmonic in a report on Friday, February 21st. They issued a “hold” rating on the stock. StockNews.com upgraded Harmonic from a “hold” rating to a “buy” rating in a report on Thursday, March 27th. Finally, Northland Securities lowered their target price on Harmonic from $14.00 to $12.50 and set an “outperform” rating on the stock in a research note on Tuesday, February 11th. Two research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, Harmonic currently has an average rating of “Moderate Buy” and an average price target of $12.50.

Harmonic Stock Down 5.4 %

The stock’s fifty day simple moving average is $10.35 and its 200-day simple moving average is $12.14. The stock has a market cap of $975.05 million, a P/E ratio of 25.24 and a beta of 0.92. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.80 and a current ratio of 2.18.

Harmonic (NASDAQ:HLIT) last issued its quarterly earnings results on Monday, February 10th. The communications equipment provider reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.01. Harmonic had a return on equity of 15.90% and a net margin of 5.78%. As a group, research analysts forecast that Harmonic Inc. will post 0.31 earnings per share for the current fiscal year.

Harmonic declared that its Board of Directors has approved a share buyback program on Monday, February 10th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the communications equipment provider to buy up to 15.4% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its shares are undervalued.

Insider Activity at Harmonic

In other news, Director Daniel T. Whalen purchased 3,000 shares of Harmonic stock in a transaction that occurred on Monday, February 24th. The shares were acquired at an average price of $10.15 per share, for a total transaction of $30,450.00. Following the transaction, the director now owns 8,840 shares of the company’s stock, valued at approximately $89,726. The trade was a 51.37 % increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director David Krall purchased 10,000 shares of the firm’s stock in a transaction dated Thursday, February 13th. The stock was acquired at an average price of $9.78 per share, for a total transaction of $97,800.00. Following the purchase, the director now owns 163,490 shares in the company, valued at approximately $1,598,932.20. The trade was a 6.52 % increase in their position. The disclosure for this purchase can be found here. Insiders purchased a total of 32,780 shares of company stock valued at $316,607 over the last quarter. 2.36% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Harmonic

Several hedge funds have recently modified their holdings of the company. PharVision Advisers LLC acquired a new position in Harmonic in the 4th quarter valued at approximately $138,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Harmonic by 18.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 322,262 shares of the communications equipment provider’s stock worth $4,264,000 after acquiring an additional 50,342 shares during the period. Wolverine Trading LLC acquired a new stake in Harmonic during the 4th quarter valued at approximately $312,000. Squarepoint Ops LLC lifted its position in shares of Harmonic by 30.2% in the 4th quarter. Squarepoint Ops LLC now owns 585,340 shares of the communications equipment provider’s stock worth $7,744,000 after purchasing an additional 135,878 shares during the period. Finally, Teza Capital Management LLC bought a new stake in shares of Harmonic in the 4th quarter valued at $312,000. 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.