Harmonic (NASDAQ:HLIT) Shares Gap Down - Here's Why

Harmonic Inc. (NASDAQ:HLIT - Get Free Report)'s share price gapped down prior to trading 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.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. Northland Securities decreased their price target on Harmonic from $16.00 to $14.00 and set an "outperform" rating on the stock in a report on Tuesday, October 29th. Rosenblatt Securities decreased their target price on Harmonic from $18.00 to $16.00 and set a "buy" rating on the stock in a research note on Tuesday, October 29th. Barclays downgraded Harmonic from an "overweight" rating to an "equal weight" rating and dropped their price target for the stock from $17.00 to $14.00 in a research note on Thursday. Raymond James cut 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 research report on Tuesday, October 29th. Finally, Needham & Company LLC restated a "buy" rating and set a $18.00 target price on shares of Harmonic in a research report on Tuesday, October 29th. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $14.75.

Harmonic Stock Performance

The business's fifty day moving average is $12.78 and its two-hundred day moving average is $13.15. The stock has a market capitalization of $1.45 billion, a PE ratio of 17.04 and a beta of 0.91. The company has a quick ratio of 1.62, a current ratio of 2.08 and a debt-to-equity ratio of 0.29.

Harmonic (NASDAQ:HLIT - Get Free Report) last issued its quarterly earnings data on Monday, October 28th. The communications equipment provider reported $0.26 EPS for the quarter, topping analysts' consensus estimates of $0.17 by $0.09. Harmonic had a net margin of 13.62% and a return on equity of 7.56%. The business had revenue of $195.80 million during the quarter, compared to analysts' expectations of $181.77 million. During the same period last year, the company posted ($0.05) EPS. The business's revenue was up 53.9% on a year-over-year basis. As a group, research analysts anticipate that Harmonic Inc. will post 0.52 EPS for the current fiscal year.

Institutional Trading of Harmonic

Institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC raised its stake in shares of Harmonic by 117.6% in the third quarter. GAMMA Investing LLC now owns 2,448 shares of the communications equipment provider's stock valued at $36,000 after acquiring an additional 1,323 shares during the period. CWM LLC raised its position in Harmonic by 274.2% in the 3rd quarter. CWM LLC now owns 8,439 shares of the communications equipment provider's stock worth $123,000 after purchasing an additional 6,184 shares during the period. iSAM Funds UK Ltd purchased a new stake in Harmonic in the 3rd quarter worth about $166,000. Captrust Financial Advisors lifted its stake in Harmonic by 14.9% in the third quarter. Captrust Financial Advisors now owns 12,671 shares of the communications equipment provider's stock worth $185,000 after purchasing an additional 1,647 shares during the last quarter. Finally, Versor Investments LP purchased a new position in shares of Harmonic during the third quarter valued at approximately $227,000. 99.38% of the stock is currently owned by institutional investors.

Harmonic Company Profile

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.