Harmonic (NASDAQ:HLIT) Stock Price Target Lowered at Barclays

Key Points

• Barclays lowered Harmonic’s price target from $16 to $14 while maintaining an “equal weight” rating; the new target still implies approximately 26.9% upside.
• Harmonic exceeded quarterly expectations, reporting EPS of $0.23 versus the $0.17 consensus and revenue of $148.8 million versus $129.5 million, with revenue up 64.5% year over year.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average target price of $17.17; Harmonic also continues to post a negative net margin despite strong recent growth.

Harmonic (NASDAQ:HLIT - Get Free Report) had its target price reduced by stock analysts at Barclays from $16.00 to $14.00 in a research note issued to investors on Tuesday, Benzinga reports. The brokerage currently has an "equal weight" rating on the communications equipment provider's stock. Barclays's price objective suggests a potential upside of 26.87% from the stock's current price.

HLIT has been the subject of several other research reports. Zacks Research downgraded Harmonic from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 24th. Weiss Ratings raised Harmonic from a "sell (d)" rating to a "sell (d+)" rating in a research note on Thursday, October 8th. Wall Street Zen lowered Harmonic from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 1st. Needham & Company LLC restated a "buy" rating on shares of Harmonic in a report on Thursday, August 13th. Finally, Northland Securities set a $17.00 target price on Harmonic in a research report on Thursday, August 13th. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Harmonic currently has a consensus rating of "Hold" and a consensus target price of $17.17.

Harmonic Stock Up 8.3%

HLIT stock opened at $11.04 on Tuesday. The company has a current ratio of 3.05, a quick ratio of 2.56 and a debt-to-equity ratio of 0.30. Harmonic has a 1 year low of $8.47 and a 1 year high of $17.68. The company has a fifty day simple moving average of $11.12 and a 200 day simple moving average of $11.57. The firm has a market cap of $1.20 billion, a PE ratio of -26.29 and a beta of 1.34.

Harmonic (NASDAQ:HLIT - Get Free Report) last issued its quarterly earnings data on Monday, November 2nd. The communications equipment provider reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.17 by $0.06. Harmonic had a negative net margin of 8.50% and a positive return on equity of 10.91%. The firm had revenue of $148.84 million during the quarter, compared to analysts' expectations of $129.47 million. During the same period in the prior year, the company posted $0.12 earnings per share. Harmonic's revenue for the quarter was up 64.5% on a year-over-year basis. Sell-side analysts anticipate that Harmonic will post 0.53 EPS for the current fiscal year.

Institutional Trading of Harmonic

A number of institutional investors and hedge funds have recently modified their holdings of the company. Nykredit A S bought a new stake in shares of Harmonic in the 2nd quarter valued at approximately $36,000. Integrated Wealth Concepts LLC acquired a new position in shares of Harmonic in the 2nd quarter worth approximately $47,000. Northwestern Mutual Wealth Management Co. acquired a new position in shares of Harmonic in the 2nd quarter worth approximately $49,000. Sterling Capital Management LLC raised its holdings in shares of Harmonic by 847.4% in the 3rd quarter. Sterling Capital Management LLC now owns 3,695 shares of the communications equipment provider's stock worth $39,000 after buying an additional 3,305 shares in the last quarter. Finally, Global Retirement Partners LLC bought a new position in shares of Harmonic during the 2nd quarter worth approximately $105,000. 99.38% of the stock is currently owned by institutional investors.

Harmonic News Roundup

Here are the key news stories impacting Harmonic this week:

• Positive Sentiment: Q3 results exceeded expectations: Harmonic reported adjusted EPS of $0.23, above the $0.17 consensus estimate, while revenue rose 64% year over year to $148.8 million, surpassing the $129.5 million analyst forecast. EPS also increased from $0.12 in the prior-year quarter. Harmonic Announces Third Quarter 2026 Results
• Positive Sentiment: Management raised its outlook: Full-year 2026 EPS guidance was set at $0.80-$0.84, well above the $0.50 consensus, while revenue guidance of $545 million-$555 million exceeded the $517 million analyst estimate. Fourth-quarter EPS guidance of $0.19-$0.23 and revenue guidance of $141 million-$151 million also came in above consensus estimates of $0.12 and $131.6 million, respectively.
• Positive Sentiment: Growth broadened beyond the core business: Rest-of-Market revenue more than doubled year over year and reached a record 46% of total revenue, supporting management’s stronger full-year outlook. Harmonic Q3 Earnings Results
• Neutral Sentiment: Harmonic also provided fourth-quarter 2026 dividend guidance, giving investors additional information about expected shareholder returns, although the supplied reports did not specify the payment amount.
• Negative Sentiment: The strong quarter leaves future bookings and cash-flow conversion as key tests. Investors may be taking a cautious view of whether the breakout growth and higher guidance can continue, which could help explain the stock’s decrease even after the earnings beat. Harmonic also continues to report a negative net margin.

About Harmonic

Harmonic Inc NASDAQ: HLIT develops broadband access and video-delivery technologies for communications service providers, content providers and broadcasters. Its solutions help operators deliver high-speed internet, television and streaming services across cable, fiber and other network infrastructures.

The company's broadband portfolio includes its CableOS platform, a software-based solution designed to support virtualized broadband access networks, along with technologies for DOCSIS, fiber and hybrid fiber-coaxial networks.

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