NeoPhotonics Corporation (NPTN) Price Daily Analysis: NPTN Bullish Above This Level

NeoPhotonics Corporation (NYSE:NPTN) grew as high as $6.55 on Thursday before closing at $6.49. The -16.15 percent plunge dragged its market cap to $305.03M. The shares went down as low as $5.845 before recovering. Trading activity significantly improved as the volume at ready counter increased to 3,756,077 shares versus 855,030 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 815,733 shares. The stock is now 31.11% above against its bear-market low of $4.95 on February 06, 2018. It has retreated -46.07% since it’s 52-week high of $9.48 reached in November. Now the market price is up 1.09% on the year and down -1.37% YTD.

NPTN’s 50 day simple moving average (SMA 50) price is $8.08 and its 200-day simple moving average (SMA 200) price is $7.18. The company’s stock currently has a total float of 42.55M shares. Its weekly volatility is hovering around 5.63% and felt 5.17% volatility in price over a month. On the upside, the share price will test short term resistance at around $6.74. On a downside, the stock is likely to find some support, which begins at $6.04. The failure to get near-term support could push it to $5.59.

Separately, it has been reported that multiple insider activity took place at NeoPhotonics Corporation (NPTN). Director Sophie Michael J sold 1,000 shares for $18,394 in transaction occurred on 2018/11/01. After making this transaction, the Director owns a direct stake of 8,050 shares, worth $119,377, as per the last closing price. On 2018/09/10 Cheung Chiyue, COO at NPTN, dumped 10,000 shares at an average price of $8.11 per share. The selling total is valued at $.

VICE PRESIDENT GLOBAL PRODUCT, Wupen Yuen had divested 22,877 shares for $32,649 through a trade on 2018/08/28. Following this activity, the insider holds 203,834 shares worth $211,892 as of recent close. Wall Street’s most bullish NeoPhotonics Corporation (NYSE:NPTN) analysts are predicting the share price to blow past $13 per share during the next 12 months. The current median share price forecast by them is $11, suggesting that the stock could increase 69.49% in that time frame. The average price target of $10.63 calls for a nearly 63.79% increase in the stock price.

It had seen a negative analyst call from B. Riley FBR, which downgraded the stock from Buy to Neutral on December 06. Analysts at B. Riley FBR, shed their negative views on August 07 by lifting it fromNeutral to Buy. Brokerage firm DA Davidson, looks cautious as they stick to prior recommendation of Neutral, in a call on August 07. However, they did change the target price from $6 to $7.50.

Also, it is trading at rather expensive levels at just over 1.83x price/book and 0.99x price/sales. Compared to others, NeoPhotonics Corporation is in a different league with regards to profitability, having net margins of -16.6%. To put some perspective around this, the industry’s average net margin is 21.22%. NPTN’s ROE is -28.9%, which is also considerably worse than the industry’s ROE of 9.21%. It’s also very liquid in the near term, with a current ratio of 2. The stock has a debt/capital of 0.35.

Shares of NeoPhotonics Corporation (NPTN) have dropped -13.7% since the company’s last earnings report. Over the past 12 fiscal quarters, NeoPhotonics Corporation (NYSE:NPTN) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 5 quarters (41%), whereas at 0 occasion EPS met analyst expectations. NPTN last reported earnings on November 02, 2018 when it released Sep-18 results that exceeded expectations. The company raked in -$0.05 per share, -99.91% change on the same period last year. That was better than consensus for -$0.11. Revenue for the recent quarter stood at $81.75 million, up 15% on last year and below the $82.44 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $87.88 million to $90.7 million, which should be compared with $90.63 million generated last year. EPS is seen in a range of -$0.05 to 0, against the $0.03 reported a year ago.