LightPath Technologies (NASDAQ:LPTH) Shares Gap Up - Still a Buy?

Key Points

• LightPath Technologies shares gapped up ahead of the open, opening at $12.14 after closing at $11.52 and last trading around $11.80.
• Analyst sentiment is mixed but slightly positive: Canaccord Genuity raised its price target to $16.50 with a buy rating, while the consensus rating remains Moderate Buy with a $14.12 target.
• Recent fundamentals and ownership activity were notable, with the company beating revenue expectations in its latest quarter, but also seeing a large insider sale and significant institutional buying.

Shares of LightPath Technologies, Inc. (NASDAQ:LPTH - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $11.52, but opened at $12.14. LightPath Technologies shares last traded at $11.80, with a volume of 466,661 shares trading hands.

Analysts Set New Price Targets

A number of brokerages have commented on LPTH. Canaccord Genuity Group boosted their price objective on LightPath Technologies from $15.50 to $16.50 and gave the stock a "buy" rating in a report on Monday, May 11th. Weiss Ratings restated a "sell (d-)" rating on shares of LightPath Technologies in a report on Tuesday, April 21st. Finally, Wall Street Zen cut LightPath Technologies from a "hold" rating to a "sell" rating in a research report on Saturday, June 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, LightPath Technologies currently has an average rating of "Moderate Buy" and a consensus target price of $14.12.

LightPath Technologies Price Performance

The company has a market capitalization of $717.69 million, a P/E ratio of -22.86 and a beta of 1.34. The business's 50-day moving average is $14.26 and its two-hundred day moving average is $12.66. The company has a quick ratio of 3.24, a current ratio of 3.86 and a debt-to-equity ratio of 0.01.

LightPath Technologies (NASDAQ:LPTH - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The technology company reported ($0.02) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.02). LightPath Technologies had a negative net margin of 37.38% and a negative return on equity of 15.55%. The business had revenue of $19.15 million during the quarter, compared to the consensus estimate of $17.04 million. As a group, analysts predict that LightPath Technologies, Inc. will post -0.11 earnings per share for the current year.

Insider Activity

In related news, Director Run Strategic Opportunit North sold 3,571,400 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $14.00, for a total transaction of $49,999,600.00. Following the completion of the sale, the director directly owned 2,934,828 shares of the company's stock, valued at approximately $41,087,592. This trade represents a 54.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders sold 3,864,452 shares of company stock valued at $53,576,437 over the last three months. Corporate insiders own 24.80% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Tema ETFs LLC raised its stake in shares of LightPath Technologies by 129,258.4% during the 2nd quarter. Tema ETFs LLC now owns 1,986,945 shares of the technology company's stock worth $32,487,000 after purchasing an additional 1,985,409 shares during the period. Tudor Investment Corp ET AL purchased a new position in shares of LightPath Technologies in the 3rd quarter worth about $8,445,000. Granahan Investment Management LLC bought a new position in LightPath Technologies during the fourth quarter valued at about $7,085,000. AWM Investment Company Inc. grew its position in LightPath Technologies by 40.9% during the fourth quarter. AWM Investment Company Inc. now owns 2,040,110 shares of the technology company's stock valued at $22,033,000 after buying an additional 592,500 shares during the period. Finally, Wasatch Advisors LP purchased a new stake in LightPath Technologies during the second quarter worth about $8,496,000. Hedge funds and other institutional investors own 56.29% of the company's stock.

About LightPath Technologies

LightPath Technologies, Inc designs, manufactures and distributes precision optical components and assemblies for a variety of commercial, industrial, defense and scientific applications. The company's portfolio includes molded glass aspheric lenses, precision glass optics, infrared lenses and assemblies, diamond-turned optics and molded polymer optics. These components are engineered to support imaging, illumination, laser delivery, detection and sensing systems across visible, ultraviolet and infrared wavelengths.

Among its core offerings, LightPath develops infrared optical solutions using materials such as germanium, zinc selenide and chalcogenide glasses for thermal imaging, night-vision devices and spectroscopy.

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