Clearfield (NASDAQ:CLFD) Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Clearfield to “strong sell” from “hold,” despite five analysts maintaining Buy ratings and two assigning Sell ratings. The overall analyst consensus remains “Hold,” with a $41.75 price target.
• Clearfield shares opened at $33.48, compared with a 12-month range of $23.76 to $52.73. The company reported quarterly EPS of $0.22, beating estimates of $0.19, while revenue of $43.86 million was slightly below expectations.
• Institutional investors made modest additions and new investments in Clearfield, with hedge funds and other institutions owning 88.73% of the stock.

Clearfield (NASDAQ:CLFD - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Thursday, Zacks reports.

CLFD has been the subject of several other research reports. Needham & Company LLC decreased their target price on Clearfield from $52.00 to $40.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Lake Street Capital set a $38.00 price target on shares of Clearfield in a research report on Thursday, August 6th. Finally, Weiss Ratings raised shares of Clearfield from a "sell (d-)" rating to a "sell (d)" rating in a report on Friday, August 21st. Five research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Clearfield has a consensus rating of "Hold" and a consensus price target of $41.75.

Clearfield Price Performance

Shares of NASDAQ:CLFD opened at $33.48 on Thursday. Clearfield has a 12 month low of $23.76 and a 12 month high of $52.73. The stock has a market cap of $454.66 million, a price-to-earnings ratio of -65.65 and a beta of 2.14. The stock's 50 day moving average price is $29.77 and its 200 day moving average price is $33.16.

Clearfield (NASDAQ:CLFD - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The communications equipment provider reported $0.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.19 by $0.03. Clearfield had a positive return on equity of 1.61% and a negative net margin of 4.71%.The firm had revenue of $43.86 million during the quarter, compared to analyst estimates of $43.92 million. Clearfield has set its Q4 2026 guidance at 0.000-0.070 EPS and its FY 2026 guidance at 0.140-0.210 EPS. On average, sell-side analysts expect that Clearfield will post 0.23 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Drum Hill Capital LLC grew its position in Clearfield by 2.7% during the 1st quarter. Drum Hill Capital LLC now owns 51,276 shares of the communications equipment provider's stock worth $1,357,000 after purchasing an additional 1,364 shares in the last quarter. Sequoia Financial Advisors LLC lifted its holdings in shares of Clearfield by 14.8% in the second quarter. Sequoia Financial Advisors LLC now owns 14,270 shares of the communications equipment provider's stock valued at $568,000 after purchasing an additional 1,837 shares in the last quarter. Cetera Trust Company N.A acquired a new stake in shares of Clearfield in the second quarter worth $80,000. Legal & General Group Plc acquired a new stake in shares of Clearfield in the second quarter worth $89,000. Finally, State of Wyoming acquired a new stake in shares of Clearfield in the second quarter worth $96,000. 88.73% of the stock is owned by hedge funds and other institutional investors.

About Clearfield

Clearfield, Inc NASDAQ: CLFD develops and manufactures fiber optic connectivity solutions used to build, expand, and maintain broadband networks. Its products are designed to simplify fiber deployment and support high-speed communications infrastructure for telecommunications and broadband service providers.

The company's portfolio includes fiber distribution hubs, cabinets, terminals, enclosures, panels, optical fiber assemblies, and related connectivity components. Clearfield also offers its FieldShield line of ruggedized, craft-friendly fiber products, which are intended to help network operators deploy fiber efficiently in locations such as homes, businesses, and other subscriber premises.

Clearfield serves a range of customers, including wireline telecommunications carriers, cable and broadband operators, municipalities, utilities, government entities, and other organizations involved in fiber network construction.

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