Oclaro, Inc. (OCLR) Looks Interesting In A Number Of Ways

Over the past 12 fiscal quarters, Oclaro, Inc. (NASDAQ:OCLR) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 0 quarters (0%), whereas at 2 occasion EPS met analyst expectations. Shares of Oclaro, Inc. (OCLR) have dropped -4.1% since the company’s Jun-18 earnings report.OCLR last reported earnings on November 08, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.08 per share, -99.28% change on the same period last year. That was worse than consensus for $0.09. Revenue for the recent quarter stood at $131.66 million, down -15% on last year and above the $128.06 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $107.5 million to $149.7 million, which should be compared with $0 generated last year.

OCLR’s 50 day simple moving average (SMA 50) price is $8.31 and its 200-day simple moving average (SMA 200) price is $8.73. The company’s stock currently has a total float of 168.29M shares. Its weekly volatility is hovering around 2.66% and felt 3.67% volatility in price over a month. On the upside, the share price will test short term resistance at around $8.51. On a downside, the stock is likely to find some support, which begins at $8.32. The failure to get near-term support could push it to $8.2.

Separately, it has been reported that multiple insider activity took place at Oclaro, Inc. (OCLR). EVP of Human Resources Paul Lisa sold 5,000 shares for $204,397 in transaction occurred on 2018/06/14. After making this transaction, the EVP of Human Resources owns a direct stake of 45,400 shares, worth $1,725,111, as per the last closing price. On 2018/05/14 Dougherty Greg, CEO at OCLR, dumped 40,000 shares at an average price of $9.26 per share. The selling total is valued at $10,571,395.

EVP of Human Resources, Paul Lisa had divested 5,000 shares for $216,886 through a trade on 2018/03/15. Following this activity, the insider holds 50,500 shares worth $1,830,518 as of recent close. Wall Street’s most bullish Oclaro, Inc. (NASDAQ:OCLR) analysts are predicting the share price to blow past $10 per share during the next 12 months. The current median share price forecast by them is $9.25, suggesting that the stock could increase 9.6% in that time frame. The average price target of $9.21 calls for a nearly 9.12% increase in the stock price.

It had seen a negative analyst call from B. Riley FBR, Inc., which downgraded the stock from Buy to Neutral on March 13. Analysts at Morgan Stanley, started covering the stock on March 09 with a Equal-Weight rating. Brokerage firm DA Davidson, looks cautious as they stick to prior recommendation of Buy, in a call on February 06. However, they did change the target price from $11 to $9.

When looking at valuations, Oclaro, Inc. (OCLR) has a pricey P/E of 17.92x as compared to industry average of 17.33x. Moreover, it trades for 16.23 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.38x price/book and 2.77x price/sales. Compared to others, Oclaro, Inc. is in a different league with regards to profitability, having net margins of 8.9%. To put some perspective around this, the industry’s average net margin is 5.34%. OCLR’s ROE is 7.9%, which is also considerably worse than the industry’s ROE of 8.18%. It’s also very liquid in the near term, with a current ratio of 5.4. The stock has a debt/capital of 0.

Oclaro, Inc. (NASDAQ:OCLR) recently claimed $1.44B as the price has approached $8.44. There came a 1.81% growth with the closing bell on Thursday. The stock remained range bound between $8.27 and $8.46. Trading activity significantly improved as the volume at ready counter increased to 5,033,333 shares versus 1,904,245 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,263,363 shares. The stock is now 50.45% above against its bear-market low of $5.61 on February 05, 2018. It has retreated -20.85% since it’s 52-week high of $10.2 reached in March. Now the market price is up 18.87% on the year and up 25.22% YTD.