Zacks Investment Research upgraded shares of Applied Micro Circuits Corp. (NASDAQ:AMCC) from a sell rating to a hold rating in a research report sent to investors on Tuesday.

According to Zacks, “Applied Micro is focused on offering innovative products like Mudan storage reference platform to augments its revenues. The company expects the embedded computer products to generate solid revenues in the next 18 to 24 months as it transitions to X-Gene based embedded products. However, the company’s computing segment continues to be adversely impacted by the overall business spending cuts as the PowerPC architecture is reportedly in secular decline. Stiff competition from other industry players and high technology obsolescence remain additional headwinds. The company also has a lackluster earnings history in the trailing four quarters. Earnings estimates have remained steady over the last month at a loss of $0.09. High operating expenses owing to significant R&D expenses reduced the profitability of the company and remain concerns. Moreover, the company continues to be cautious about the erratic macroeconomic environment.”

A number of other brokerages also recently weighed in on AMCC. Susquehanna started coverage on Applied Micro Circuits Corp. in a report on Tuesday. They set a neutral rating and a $8.00 price target for the company. BMO Capital Markets restated a hold rating and issued a $7.00 target price on shares of Applied Micro Circuits Corp. in a research note on Thursday, July 28th. Roth Capital initiated coverage on Applied Micro Circuits Corp. in a research note on Thursday, September 1st. They issued a buy rating and a $8.00 target price for the company. Finally, Oppenheimer Holdings Inc. restated a hold rating on shares of Applied Micro Circuits Corp. in a research note on Wednesday, June 15th. Six research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. Applied Micro Circuits Corp. has a consensus rating of Hold and an average target price of $8.19.

Shares of Applied Micro Circuits Corp. (NASDAQ:AMCC) opened at 7.00 on Tuesday. The company’s 50-day moving average price is $7.06 and its 200 day moving average price is $6.59. Applied Micro Circuits Corp. has a 12-month low of $4.93 and a 12-month high of $7.68. The company’s market cap is $597.56 million.

Applied Micro Circuits Corp. (NASDAQ:AMCC) last issued its quarterly earnings results on Wednesday, July 27th. The company reported ($0.03) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.02) by $0.01. Applied Micro Circuits Corp. had a negative return on equity of 31.29% and a negative net margin of 21.91%. The business had revenue of $41.50 million for the quarter, compared to analyst estimates of $41.51 million. During the same quarter in the previous year, the business posted ($0.04) earnings per share. The business’s revenue was up 9.8% on a year-over-year basis. Equities analysts predict that Applied Micro Circuits Corp. will post ($0.05) earnings per share for the current year.

Institutional investors have recently bought and sold shares of the company. Macquarie Group Ltd. boosted its stake in Applied Micro Circuits Corp. by 36.1% in the second quarter. Macquarie Group Ltd. now owns 2,713,104 shares of the company’s stock worth $17,418,000 after buying an additional 719,568 shares during the period. Schwab Charles Investment Management Inc. boosted its stake in Applied Micro Circuits Corp. by 1.7% in the second quarter. Schwab Charles Investment Management Inc. now owns 295,089 shares of the company’s stock worth $1,895,000 after buying an additional 4,872 shares during the period. Stifel Financial Corp boosted its stake in Applied Micro Circuits Corp. by 6.6% in the second quarter. Stifel Financial Corp now owns 20,250 shares of the company’s stock worth $130,000 after buying an additional 1,250 shares during the period. Jane Street Group LLC boosted its stake in Applied Micro Circuits Corp. by 49.3% in the second quarter. Jane Street Group LLC now owns 16,655 shares of the company’s stock worth $107,000 after buying an additional 5,503 shares during the period. Finally, Panagora Asset Management Inc. bought a new stake in Applied Micro Circuits Corp. during the second quarter worth approximately $1,101,000. 76.24% of the stock is currently owned by hedge funds and other institutional investors.

Applied Micro Circuits Corp. Company Profile

Applied Micro Circuits Corporation (AMCC) provides silicon solutions for cloud infrastructure and data centers, as well as connectivity products for edge, metro and long haul communications equipment. The Company’s products serve Computing and Connectivity markets. Its Computing products include the X-Gene family of server processors, based on the ARMv8 64-bit Instruction Set Architecture (ISA), which target mainstream cloud and data center infrastructure, including hyperscale, telco, enterprise and high performance computing.

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