POET Technologies (NASDAQ:POET) Shares Up 7.4% - Here's Why

Key Points

• POET Technologies shares rose 7.4% to about $8.91 on Tuesday (intraday high $8.94) while trading volume (~4.77M shares) was down roughly 34% from the daily average.
• Analysts hold an average "Sell" rating with a consensus price target of $8.00, which is below the current stock price.
• The company shows weak fundamentals—quarterly EPS of ($0.11) missed estimates, an extremely negative net margin (~6,625%) and negative ROE—despite a market cap near $1.09B and the stock trading above its 50- and 200-day moving averages (~$6.20).

POET Technologies Inc. (NASDAQ:POET - Get Free Report)'s share price rose 7.4% during trading on Tuesday . The stock traded as high as $8.94 and last traded at $8.9120. Approximately 4,767,313 shares were traded during mid-day trading, a decline of 34% from the average daily volume of 7,201,182 shares. The stock had previously closed at $8.30.

Analyst Ratings Changes

POET has been the subject of several recent analyst reports. Weiss Ratings restated a "sell (d-)" rating on shares of POET Technologies in a research report on Wednesday, October 8th. Wall Street Zen upgraded shares of POET Technologies from a "sell" rating to a "hold" rating in a research note on Sunday, November 16th. Finally, Northland Securities set a $8.00 price objective on shares of POET Technologies in a research note on Wednesday, December 3rd. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock currently has an average rating of "Sell" and a consensus price target of $8.00.

POET Technologies Stock Performance

The firm's 50-day moving average is $6.20 and its 200 day moving average is $6.14. The stock has a market cap of $1.09 billion, a PE ratio of -11.54 and a beta of 0.31.

POET Technologies (NASDAQ:POET - Get Free Report) last posted its quarterly earnings data on Thursday, November 13th. The company reported ($0.11) EPS for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.02). POET Technologies had a negative net margin of 6,625.16% and a negative return on equity of 103.46%. The business had revenue of $0.30 million during the quarter, compared to analyst estimates of $0.55 million. On average, sell-side analysts predict that POET Technologies Inc. will post -0.45 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of POET. Quadrature Capital Ltd purchased a new position in POET Technologies in the 2nd quarter valued at approximately $855,000. MMCAP International Inc. SPC grew its holdings in POET Technologies by 2,198.7% in the second quarter. MMCAP International Inc. SPC now owns 5,894,384 shares of the company's stock valued at $30,710,000 after purchasing an additional 5,637,964 shares during the last quarter. Aptus Capital Advisors LLC raised its stake in shares of POET Technologies by 8.0% during the 3rd quarter. Aptus Capital Advisors LLC now owns 105,709 shares of the company's stock worth $586,000 after buying an additional 7,800 shares during the last quarter. New Millennium Group LLC purchased a new stake in shares of POET Technologies in the 3rd quarter worth about $27,000. Finally, HighPoint Advisor Group LLC purchased a new position in POET Technologies during the 3rd quarter valued at about $68,000. Institutional investors and hedge funds own 1.99% of the company's stock.

About POET Technologies

POET Technologies Inc is a Canadian fabless semiconductor company focused on the development and commercialization of integrated silicon photonics platforms. Leveraging proprietary POET Optical Interposer™ technology, the company designs and manufactures optical input/output (I/O) solutions that enable high-bandwidth, low-power data transmission between electronic chips and fiber-optic networks. By integrating optical waveguides, lasers, detectors and electronic drivers onto a single chip, POET aims to address the growing demand for faster, more energy-efficient data connectivity in telecommunications, data centers and high-performance computing applications.

The company’s core products include silicon photonics interposer arrays, active optical cables and optical transceiver modules.

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