IPG Photonics (NASDAQ:IPGP) Issues Quarterly Earnings Results

Key Points

• IPG Photonics beat quarterly expectations: Adjusted earnings were $0.61 per share versus the $0.46 consensus estimate, while revenue reached $287.5 million, slightly above forecasts and up 14.6% year over year.
• Shares remain under pressure: IPGP opened at $72.72, near its 52-week low of $68.27 and well below its 52-week high of $155.82; the stock has a market capitalization of about $3.09 billion.
• Analyst sentiment is moderately bullish despite insider selling: Analysts assign a consensus “Moderate Buy” rating with an average $142.60 price target, while insiders sold 63,917 shares worth approximately $5.38 million over the past 90 days.

IPG Photonics (NASDAQ:IPGP - Get Free Report) posted its earnings results on Tuesday. The semiconductor company reported $0.61 EPS for the quarter, beating analysts' consensus estimates of $0.46 by $0.15, FiscalAI reports. IPG Photonics had a net margin of 2.58% and a return on equity of 3.39%. The company had revenue of $287.50 million for the quarter, compared to analysts' expectations of $283.31 million. During the same quarter in the prior year, the company posted $0.35 earnings per share. IPG Photonics's revenue for the quarter was up 14.6% compared to the same quarter last year.

IPG Photonics Stock Performance

Shares of NASDAQ IPGP opened at $72.72 on Tuesday. The stock's 50-day simple moving average is $76.38 and its 200-day simple moving average is $100.78. The firm has a market capitalization of $3.09 billion, a PE ratio of 111.89, a price-to-earnings-growth ratio of 1.81 and a beta of 0.97. IPG Photonics has a fifty-two week low of $68.27 and a fifty-two week high of $155.82.

Insiders Place Their Bets

In other IPG Photonics news, Director Eugene Scherbakov sold 3,048 shares of the stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $85.30, for a total value of $259,994.40. Following the transaction, the director directly owned 45,162 shares in the company, valued at $3,852,318.60. This represents a 6.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Valentin Gapontsev Trust I sold 18,091 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $75.14, for a total transaction of $1,359,357.74. Following the sale, the insider directly owned 6,652,192 shares in the company, valued at approximately $499,845,706.88. The trade was a 0.27% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 63,917 shares of company stock valued at $5,382,488. 37.50% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

IPGP has been the subject of a number of analyst reports. Weiss Ratings reissued a "sell (d+)" rating on shares of IPG Photonics in a research report on Monday, September 21st. Citigroup reduced their price objective on shares of IPG Photonics from $150.00 to $137.00 and set a "buy" rating on the stock in a report on Tuesday, August 11th. Finally, Needham & Company LLC lifted their price objective on shares of IPG Photonics from $110.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, July 17th. Five equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $142.60.

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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