Optical Cable (NASDAQ:OCC) Issues Earnings Results

Key Points

• Optical Cable reported quarterly EPS of $0.21, edging past the $0.20 consensus estimate. The company posted a 5.92% return on equity and a 1.29% net margin.
• Shares opened at $13.70, with a market capitalization of approximately $121 million and a price-to-earnings ratio of 114.18. The stock has traded between $4.02 and $27.98 over the past 52 weeks.
• Analyst sentiment remains cautious, with a consensus rating of “Reduce”; one analyst rates the stock Hold and another Sell. Separately, the CFO sold 16,453 shares, while insiders collectively own 22.40% of the company.

Optical Cable (NASDAQ:OCC - Get Free Report) issued its earnings results on Wednesday. The communications equipment provider reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.01, Zacks reports. Optical Cable had a return on equity of 5.92% and a net margin of 1.29%.

Optical Cable Price Performance

Shares of NASDAQ OCC opened at $13.70 on Wednesday. The company has a 50 day simple moving average of $15.02 and a two-hundred day simple moving average of $12.97. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.74 and a current ratio of 2.08. The company has a market capitalization of $120.97 million, a price-to-earnings ratio of 114.18 and a beta of 0.57. Optical Cable has a fifty-two week low of $4.02 and a fifty-two week high of $27.98.

Analyst Upgrades and Downgrades

OCC has been the subject of a number of research reports. Wall Street Zen raised Optical Cable from a "hold" rating to a "buy" rating in a research note on Saturday, August 29th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Optical Cable in a report on Friday, July 17th. Finally, Zacks Research upgraded Optical Cable to a "hold" rating in a research report on Wednesday, August 26th. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Optical Cable has a consensus rating of "Reduce".

Insider Buying and Selling at Optical Cable

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

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP raised its holdings in Optical Cable by 1.7% in the 4th quarter. Dimensional Fund Advisors LP now owns 268,932 shares of the communications equipment provider's stock worth $1,197,000 after acquiring an additional 4,497 shares during the period. Royal Bank of Canada boosted its stake in shares of 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 worth $348,000 after acquiring an additional 9,535 shares during the period. State Street Corp increased its holdings in shares of Optical Cable by 37.4% during the fourth quarter. State Street Corp now owns 36,773 shares of the communications equipment provider's stock worth $164,000 after purchasing an additional 10,000 shares during the period. Citadel Advisors LLC acquired a new stake in shares of Optical Cable during the third quarter valued at about $102,000. Finally, Dynamic Technology Lab Private Ltd bought a new position in Optical Cable during the fourth quarter worth $57,000. Institutional investors and hedge funds own 13.61% of the company's stock.

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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