The stock of NeoPhotonics Corporation (NYSE:NPTN) is now priced at $6.96 and the shares are 0.3 points up or 4.5% higher compared to its previous closing price of $6.66. The stock had 2.603 million contracts set over the past session. NPTN shares’ daily volume is compared to its average trading volume at 1.162 million shares. However, it has a float of 46.57 million and although its performance was -0.57% over the week, it’s one to watch. Analysts have given the NPTN stock a yearly average price target of $11.38 per share. It means the stock’s upside potential is 63.51% with the NPTN share price recently placing at $6.82 to $7.34. However, some brokerage firms have priced the stock below the average, including one that has called $6.5.
The shorts are running away from the NeoPhotonics Corporation stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the NPTN shares have declined. Short interest in the stock represents just 9.43% of its float, but the volume has dropped by 0.
In the last trading session, NeoPhotonics Corporation (NYSE:NPTN) dropped by -$0.04 over the week and lost -$2.99 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $10.34. The stock recorded its established 52-week high on 06/08/20.
Since 03/19/20, the stock has traded to a low of $4.65 at 49.53%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.27. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, NeoPhotonics Corporation’s two-week RSI is 36.35. This suggests that the stock is neutral at the moment and that NPTN shares’ price movement remains stable. The stochastic readings are equally revealing at 17.99% meaning the NPTN share price is currently in overbought territory.
The technical chart shows that the NPTN stock will likely settle at between $7.26 and $7.56 per share. However, if the stock dips below $6.74, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $6.52.
Currently, the stock is trading in the red of MACD, with a reading of -0.16. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at B. Riley FBR raised their recommendation for NPTN from Neutral to Buy in September 01 review while maintain their target price of $9. Needham analysts downgraded their recommendation of the stock from Buy to Hold in a flash note released to investors on August 31. Raymond James seeing the stock struggling downgraded it from Mkt Perform to Underperform on August 25.
The average rating for the NPTN equity is 2.3 and is currently gathering a bullish momentum. Of 10 analysts tracking NeoPhotonics Corporation polled by Reuters, 3 rated NPTN as a hold. The remaining 7 analysts were split evenly. However, the split wasn’t equal as a majority (6) rated it as a buy or strong buy. 1 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the NPTN stock price is 12.63X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 20.5 below the group’s average of 29.9. NeoPhotonics Corporation has its P/E ratio at 1.9, which means that the stock is currently trading at a discount relative to the 6.1 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for NeoPhotonics Corporation (NYSE:NPTN) will decrease by about -99.9%, which will see them reach $102 million. The company’s full-year revenues are, however, expected to increase by about 12.31%, up from $357 million to $401 million. NPTN’s expected adjusted earnings should drop almost -18.18% to end up at $0.09 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 5200% to record $0.53/share.