Finisar (FNSR) Upgraded to Buy by Zacks Investment Research
Zacks Investment Research upgraded shares of Finisar (NASDAQ:FNSR) from a hold rating to a buy rating in a research note published on Tuesday morning. The firm currently has $19.00 target price on the technology company’s stock.
According to Zacks, “Finisar continues to expand its broad product line of optical subsystems through dedicated research and development activities to meet the evolving customer needs. The company believes in low cost and high value-added product manufacturing as a way to enhance revenues. Finisar has low cost manufacturing units in Ipoh, Malaysia and Wuxi, China, which significantly lowers the cost of production driven by cheap and efficient availability of labor, offering a competitive edge over its rivals. The company remains focused on targeting opportunities where it can use its high-speed data transmission protocols as these technologies are used across multiple data and telecommunication applications. However, the stock has underperformed the industry in the past three months on an average. The current restrictions on export to China pose a significant threat to Finisar’s business, given that majority of its revenues come from overseas.”
Several other research analysts have also commented on the stock. Barclays restated a hold rating and set a $24.00 price target on shares of Finisar in a research note on Sunday, September 9th. Morgan Stanley lowered shares of Finisar from an overweight rating to an equal weight rating and set a $20.00 price target on the stock. in a research note on Thursday, September 13th. Raymond James lowered shares of Finisar from an outperform rating to a market perform rating in a research note on Wednesday, August 22nd. B. Riley dropped their price target on shares of Finisar from $19.00 to $17.00 and set a neutral rating on the stock in a research note on Tuesday, September 4th. Finally, BidaskClub lowered shares of Finisar from a buy rating to a hold rating in a research note on Tuesday, September 18th. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and ten have given a buy rating to the stock. The stock presently has an average rating of Hold and a consensus price target of $23.93.
Finisar (NASDAQ:FNSR) last released its quarterly earnings data on Thursday, September 6th. The technology company reported $0.18 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.12 by $0.06. The firm had revenue of $317.30 million for the quarter, compared to analyst estimates of $315.77 million. Finisar had a negative net margin of 6.71% and a positive return on equity of 1.24%. The company’s revenue for the quarter was down 7.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.40 EPS. Equities research analysts forecast that Finisar will post 0.47 earnings per share for the current year.
In related news, Director Jerry S. Rawls sold 40,000 shares of the firm’s stock in a transaction on Tuesday, September 4th. The shares were sold at an average price of $19.24, for a total value of $769,600.00. Following the transaction, the director now directly owns 483,258 shares in the company, valued at approximately $9,297,883.92. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Roger C. Ferguson sold 3,000 shares of the firm’s stock in a transaction on Monday, September 24th. The shares were sold at an average price of $18.44, for a total transaction of $55,320.00. Following the completion of the transaction, the director now owns 32,920 shares in the company, valued at $607,044.80. The disclosure for this sale can be found here. Insiders sold a total of 113,208 shares of company stock worth $2,090,154 over the last quarter. 1.11% of the stock is currently owned by company insiders.
Large investors have recently bought and sold shares of the stock. Quantitative Systematic Strategies LLC acquired a new position in Finisar in the 2nd quarter valued at $841,000. Lumina Fund Management LLC grew its stake in Finisar by 10.3% in the 2nd quarter. Lumina Fund Management LLC now owns 30,000 shares of the technology company’s stock valued at $540,000 after buying an additional 2,800 shares during the last quarter. Glenmede Trust Co. NA grew its stake in Finisar by 87.4% in the 2nd quarter. Glenmede Trust Co. NA now owns 1,547,161 shares of the technology company’s stock valued at $27,848,000 after buying an additional 721,583 shares during the last quarter. Rhumbline Advisers grew its stake in Finisar by 3.2% in the 2nd quarter. Rhumbline Advisers now owns 278,260 shares of the technology company’s stock valued at $5,009,000 after buying an additional 8,543 shares during the last quarter. Finally, Legal & General Group Plc boosted its holdings in Finisar by 3.2% in the 2nd quarter. Legal & General Group Plc now owns 250,247 shares of the technology company’s stock valued at $4,481,000 after purchasing an additional 7,643 shares during the period.
Finisar Corporation provides components and subsystems to networking equipment manufacturers, data center operators, telecom service providers, consumer electronics, and automotive companies in the United States, China, Malaysia, and internationally. The company's optical subsystems primarily include transmitters, receivers, transceivers, transponders, and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in wireline networks comprising switches, routers, and servers, as well as wireless networks, such as antennas and base stations.
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