nLight (NASDAQ:LASR) Reaches New 1-Year High Following Strong Earnings

Key Points

• nLight's share price climbed to a new 52-week high of $26.21 on strong earnings, outperforming analysts' estimates with a reported EPS of $0.06 and revenue of $61.74 million.
• Analysts have responded positively, with Craig Hallum raising its price target from $14.00 to $24.00 and Needham increasing theirs from $18.00 to $28.00, both maintaining "buy" ratings.
• Insider trading activity included CEO Scott H. Keeney selling 33,682 shares, while institutional ownership of nLight stocks stands at 83.88%, indicating strong institutional interest.

nLight (NASDAQ:LASR - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $26.21 and last traded at $24.64, with a volume of 46186 shares traded. The stock had previously closed at $20.47.

The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.15. nLight had a negative return on equity of 19.01% and a negative net margin of 21.66%. The company had revenue of $61.74 million for the quarter, compared to the consensus estimate of $55.24 million. During the same quarter in the prior year, the business earned ($0.10) EPS. nLight's revenue was up 22.2% on a year-over-year basis.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Benchmark increased their price objective on nLight from $15.00 to $25.00 and gave the company a "speculative buy" rating in a report on Friday. Cantor Fitzgerald increased their price objective on nLight from $14.00 to $27.50 and gave the company an "overweight" rating in a report on Friday. Stifel Nicolaus increased their price objective on nLight from $12.00 to $26.00 and gave the company a "buy" rating in a report on Friday. Needham & Company LLC increased their price objective on nLight from $18.00 to $28.00 and gave the company a "buy" rating in a report on Friday. Finally, Craig Hallum reiterated a "buy" rating and issued a $24.00 price objective (up previously from $14.00) on shares of nLight in a report on Thursday, June 26th. Five equities research analysts have rated the stock with a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, nLight has an average rating of "Buy" and an average target price of $26.42.

Insider Transactions at nLight

In related news, CEO Scott H. Keeney sold 33,682 shares of the company's stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $19.53, for a total value of $657,809.46. Following the completion of the sale, the chief executive officer directly owned 1,206,540 shares of the company's stock, valued at $23,563,726.20. This represents a 2.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Joseph John Corso sold 10,062 shares of the company's stock in a transaction dated Friday, June 13th. The shares were sold at an average price of $17.62, for a total value of $177,292.44. Following the completion of the sale, the chief financial officer directly owned 166,362 shares of the company's stock, valued at approximately $2,931,298.44. This trade represents a 5.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 201,915 shares of company stock valued at $3,445,301. Insiders own 6.10% of the company's stock.

Institutional Trading of nLight

A number of large investors have recently made changes to their positions in the company. Senvest Management LLC lifted its position in nLight by 114.1% during the 4th quarter. Senvest Management LLC now owns 2,481,677 shares of the company's stock worth $26,033,000 after acquiring an additional 1,322,637 shares during the period. Invenomic Capital Management LP acquired a new stake in nLight during the 1st quarter worth approximately $6,763,000. Segall Bryant & Hamill LLC lifted its position in nLight by 140.4% during the 1st quarter. Segall Bryant & Hamill LLC now owns 1,207,580 shares of the company's stock worth $9,383,000 after acquiring an additional 705,215 shares during the period. AIGH Capital Management LLC acquired a new stake in nLight during the 2nd quarter worth approximately $11,810,000. Finally, Needham Investment Management LLC lifted its position in nLight by 13.4% during the 4th quarter. Needham Investment Management LLC now owns 2,652,115 shares of the company's stock worth $27,821,000 after acquiring an additional 314,375 shares during the period. 83.88% of the stock is owned by institutional investors and hedge funds.

nLight Stock Up 4.6%

The business has a 50-day simple moving average of $19.28 and a two-hundred day simple moving average of $13.09. The company has a debt-to-equity ratio of 0.09, a quick ratio of 4.63 and a current ratio of 5.81. The company has a market capitalization of $1.37 billion, a price-to-earnings ratio of -29.08 and a beta of 2.35.

nLight Company Profile

nLIGHT, Inc designs, develops, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. The company operates in two segments, Laser Products and Advanced Development. It offers semiconductor lasers with various ranges of power levels, wavelengths, and output fiber sizes; and programmable and serviceable fiber lasers for use in industrial and aerospace and defense applications.