Optical Cable (NASDAQ:OCC) Upgraded to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Optical Cable to “strong-buy” from “buy,” though broader analyst sentiment remains cautious, with one hold and one sell rating producing a MarketBeat consensus of “Reduce.”
• Optical Cable reported quarterly EPS of $0.21, beating estimates by $0.01, while revenue of $24.3 million fell slightly short of the $24.5 million consensus estimate.
• Shares opened at $14.62, with a $129.24 million market capitalization and a wide 52-week range of $4.02 to $27.98; the company’s CFO recently sold 16,453 shares, while insiders collectively own 22.4% of the stock.

Optical Cable (NASDAQ:OCC - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued on Saturday, Wall Street Zen reports.

OCC has been the topic of a number of other research reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Optical Cable in a research note on Friday, July 17th. Zacks Research upgraded shares of Optical Cable to a "hold" rating in a research note on Wednesday, August 26th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Reduce".

Optical Cable Price Performance

Shares of NASDAQ OCC opened at $14.62 on Friday. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.17 and a quick ratio of 0.74. Optical Cable has a 1-year low of $4.02 and a 1-year high of $27.98. The company has a market capitalization of $129.24 million, a price-to-earnings ratio of 50.42 and a beta of 0.57. The business has a 50-day moving average of $14.88 and a 200-day moving average of $13.10.

Optical Cable (NASDAQ:OCC - Get Free Report) last announced its earnings results on Wednesday, September 9th. The communications equipment provider reported $0.21 EPS for the quarter, beating the consensus estimate of $0.20 by $0.01. The business had revenue of $24.30 million for the quarter, compared to the consensus estimate of $24.50 million. Optical Cable had a return on equity of 15.88% and a net margin of 3.10%. On average, equities analysts anticipate that Optical Cable will post 0.49 EPS for the current fiscal year.

Insider Buying and Selling

In other Optical Cable news, CFO Tracy G. Smith sold 16,453 shares of the firm's stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $17.23, for a total transaction of $283,485.19. Following the completion of the sale, the chief financial officer owned 329,826 shares in the company, valued at $5,682,901.98. This trade represents a 4.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 22.40% of the company's stock.

Hedge Funds Weigh In On Optical Cable

Several institutional investors and hedge funds have recently made changes to their positions in OCC. Shikiar Asset Management Inc. grew its position in shares of Optical Cable by 14.4% during the first quarter. Shikiar Asset Management Inc. now owns 28,150 shares of the communications equipment provider's stock worth $232,000 after buying an additional 3,550 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Optical Cable by 1.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 268,932 shares of the communications equipment provider's stock valued at $1,197,000 after acquiring an additional 4,497 shares in the last quarter. Royal Bank of Canada boosted its stake in Optical Cable by 8.3% during the 1st quarter. Royal Bank of Canada now owns 124,769 shares of the communications equipment provider's stock valued at $348,000 after acquiring an additional 9,535 shares during the last quarter. State Street Corp boosted its stake in Optical Cable by 37.4% during the 4th quarter. State Street Corp now owns 36,773 shares of the communications equipment provider's stock valued at $164,000 after acquiring an additional 10,000 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Optical Cable during the 2nd quarter worth $216,000. 13.61% of the stock is currently owned by hedge funds and other institutional investors.

About Optical Cable

Optical Cable Corporation NASDAQ: OCC is a publicly traded designer and manufacturer of optical fiber and copper communications cable solutions. Headquartered in Roanoke, Virginia, the company develops a broad range of standard and custom cable assemblies, connectors, hardware and accessories. Its product portfolio addresses data transmission requirements in demanding environments, including long-haul telecommunications, industrial automation, defense systems and submersible applications.

The company's offerings are organized across multiple product lines, encompassing outside-plant fiber optic cable for aerial and underground installations, indoor/outdoor copper connectivity and specialty engineered cable assemblies.

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