Harmonic Inc. (NASDAQ:HLIT) finished Wednesday with a subtraction of -$0.01 to close at $9.37, a downside of -0.11 percent. An average of 1,566,220 shares of common stock have been traded in the last five days. There was a fall of -$0.17 in the past week, and it reached a new high 31 times over the past 12 months. The last 20 days have seen an average of 1,491,670 shares traded, while the 50-day average volume stands at 1,868,034.
HLIT stock has decreased by -8.76% in the last month. The company shares reached their 1-month lowest point of $9.35 on 09/27/23. With the stock rallying to its 52-week high on 06/21/23, shares of the company touched a low of $9.35 and a high of $18.43 in 52 weeks. It has reached a new high 24 times so far this year and lost -28.47% or -$3.73 in price. In spite of this, the price is down -49.16% from the 52-week high.
Insider Transactions
HLIT stock investors should be aware that Harmonic Inc. (HLIT) stock had its last reported insider trading activity 288 days ago on Dec 14. In this transaction, the insider spent $215,388. President and CEO, HARSHMAN PATRICK, disposed of 69,090 shares at a price of $13.35 on Dec 13. The insider now owns more than $922,075 worth of shares. Prior to that, SVP & GM, Broadband Business Ben-Natan Nimrod went on to Sale 50,000 shares at $14.90 each on Nov 30. An amount of $745,200 was transacted.
Valuation Metrics
Harmonic Inc. (HLIT) has a trailing price-to-earnings (P/E) ratio of 50.43. The stock’s beta is 0.91. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.65, the price-to-book (PB) ratio at 3.05.
Financial Health
The quick ratio of Harmonic Inc. for the three months ended June 29 was 0.76, and the current ratio was 1.15, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.09 and a total debt to equity ratio of 0.46 for the quarter ending June 29. Harmonic Inc.’s EBITDA margin for the year ending June 29 is 9.87%, while its operating margin for the same period stands at 7.99%. Its gross profit as reported stood at $315.88 million compared to revenue of $624.96 million.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Harmonic Inc.’s return on assets was 3.10%.
Earnings Surprise
For the three-month period that ended June 29, Harmonic Inc. had $10.54 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $1.56 million in the quarter, while revenues were shrunk -851.28%. The analyst consensus anticipated Harmonic Inc.’s latest quarter earnings to come in at $0.13 per share, but it turned out to be $0.12, a -7.70% surprise. For the quarter, EBITDA amounted to $13.68 million. Shareholders own equity worth $111.92 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Harmonic Inc. (HLIT) price momentum. RSI 9-day as of the close on 27 September was 32.62%, suggesting the stock is Neutral, with historical volatility in this time frame at 22.50%.
As of today, HLIT’s price is $9.47 -1.78% or -$0.17 from its 5-day moving average. HLIT is currently trading -8.32% lower than its 20-day SMA and -30.64% lower than its 100-day SMA. However, the stock’s current price level is -40.01% below the SMA50 and -30.23% below the SMA200.
The stochastic %K and %D were 9.55% and 11.32%, respectively, and the average true range (ATR) was 0.30. With the 14-day stochastic at 2.22% and the average true range at 0.33, the RSI (14) stands at 32.73%. The stock has reached -0.11 on the 9-day MACD Oscillator while the 14-day reading was at -0.24.
Analyst Ratings
Raymond James upgraded Harmonic Inc. (NASDAQ: HLIT) to a a Strong buy rating in its most recent analyst report. Previously, the stock was rated as an Outperform.
What is HLIT’s price target for the next 12 months?
Analysts predict a range of price targets between $16.00 and $20.00, with a median target of $18.00. Taking a look at these predictions, the average price target given by analysts for Harmonic Inc. (HLIT) stock is $18.33.
