IPG Photonics Corporation (NASDAQ:IPGP) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts rate IPG Photonics a “Moderate Buy”: Five of eight covering firms recommend buying, two rate it hold, and one recommends selling; the average 12-month price target is $139.60.
• Quarterly results beat expectations: IPG reported adjusted earnings of $0.61 per share versus $0.49 expected, while revenue of $287.5 million rose 14.6% year over year and topped estimates.
• Analysts have trimmed price targets, and the company’s outlook signals near-term caution despite the strong quarter. Semiconductor laser revenue more than doubled, while industrial and advanced-solutions demand also supported growth.

Shares of IPG Photonics Corporation (NASDAQ:IPGP - Get Free Report) have received an average rating of "Moderate Buy" from the eight research firms that are currently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and five have issued a buy recommendation on the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $139.60.

Several brokerages have recently commented on IPGP. Citigroup reduced their price objective on shares of IPG Photonics from $150.00 to $137.00 and set a "buy" rating for the company in a research report on Tuesday, August 11th. Needham & Company LLC dropped their target price on shares of IPG Photonics from $120.00 to $105.00 and set a "buy" rating on the stock in a research report on Wednesday. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of IPG Photonics in a research note on Monday, September 21st.

IPG Photonics News Summary

Here are the key news stories impacting IPG Photonics this week:

• Positive Sentiment: Q3 adjusted earnings were $0.61 per share, ahead of the $0.49 consensus, while revenue of about $288 million also exceeded estimates and rose roughly 15% year over year. Semiconductor laser revenue more than doubled, and industrial and advanced-solutions demand supported growth. Article: IPG Photonics: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Needham lowered its price target to $105 from $120 but maintained a Buy rating. The reduced target is a headwind, although the new target still implies substantial upside from the price cited in the report. Article: Needham price target update
• Neutral Sentiment: Major shareholder Valentin Gapontsev Trust I sold shares under a pre-arranged Rule 10b5-1 plan. The reported sales were small relative to its remaining stake of more than 6.6 million shares, limiting the signal’s significance. SEC Form 4 filing
• Negative Sentiment: Despite the earnings beat, the Q3 deep dive noted that guidance reflects near-term caution. That outlook may be prompting investors to focus on potential near-term softness rather than the quarter’s growth. Article: IPGP Q3 deep dive

IPG Photonics Price Performance

NASDAQ IPGP opened at $70.11 on Thursday. The business has a 50 day simple moving average of $76.42 and a 200 day simple moving average of $100.71. IPG Photonics has a one year low of $67.70 and a one year high of $155.82. The stock has a market capitalization of $2.98 billion, a P/E ratio of 74.59, a P/E/G ratio of 1.79 and a beta of 1.00.

IPG Photonics (NASDAQ:IPGP - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The semiconductor company reported $0.61 earnings per share for the quarter, topping analysts' consensus estimates of $0.49 by $0.12. IPG Photonics had a return on equity of 3.91% and a net margin of 3.65%. The business had revenue of $287.50 million during the quarter, compared to the consensus estimate of $283.31 million. During the same period in the previous year, the company posted $0.35 earnings per share. The firm's revenue for the quarter was up 14.6% on a year-over-year basis. Equities analysts expect that IPG Photonics will post 1.86 earnings per share for the current year.

Insider Activity at IPG Photonics

In other news, major shareholder Valentin Gapontsev Trust I sold 14,632 shares of the company's stock in a transaction dated Tuesday, November 3rd. The shares were sold at an average price of $75.18, for a total transaction of $1,100,033.76. Following the transaction, the insider owned 6,622,234 shares in the company, valued at approximately $497,859,552.12. This represents a 0.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eugene Scherbakov sold 3,048 shares of the stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $85.30, for a total value of $259,994.40. Following the completion of the transaction, the director owned 45,162 shares in the company, valued at approximately $3,852,318.60. The trade was a 6.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 66,458 shares of company stock valued at $5,194,276. 37.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On IPG Photonics

A number of institutional investors have recently modified their holdings of IPGP. State Street Corp raised its holdings in shares of IPG Photonics by 11.0% in the second quarter. State Street Corp now owns 909,287 shares of the semiconductor company's stock valued at $106,678,000 after purchasing an additional 90,028 shares during the last quarter. Trillium Asset Management LLC purchased a new position in IPG Photonics during the second quarter worth about $3,938,000. Assenagon Asset Management S.A. boosted its holdings in IPG Photonics by 759.3% during the third quarter. Assenagon Asset Management S.A. now owns 182,823 shares of the semiconductor company's stock worth $14,311,000 after purchasing an additional 161,547 shares during the last quarter. Renaissance Technologies LLC boosted its holdings in IPG Photonics by 173.8% during the first quarter. Renaissance Technologies LLC now owns 85,700 shares of the semiconductor company's stock worth $9,820,000 after purchasing an additional 54,400 shares during the last quarter. Finally, Westport Asset Management Inc. bought a new stake in IPG Photonics in the 2nd quarter worth about $9,092,000. 93.79% of the stock is owned by institutional investors and hedge funds.

About IPG Photonics

IPG Photonics Corporation NASDAQ: IPGP develops and manufactures high-performance fiber lasers, laser systems, optical amplifiers and related components. Its product portfolio includes single-mode and multi-mode fiber lasers, pulsed lasers, diode lasers, beam-delivery systems and other specialized photonics products.

The company's technologies are used primarily for industrial materials processing applications, including cutting, welding, marking, drilling, cladding and additive manufacturing.

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