POET Technologies (NASDAQ:POET) Trading Up 8.4% - Should You Buy?

Key Points

• POET Technologies shares jumped 8.4% on Tuesday, trading as high as $8.02 before closing around $8.10. However, trading volume was far below normal at about 1.43 million shares versus an average of 24.7 million.
• Recent analyst sentiment remains bearish, with Weiss Ratings reiterating a sell rating and Wall Street Zen cutting the stock from hold to sell. MarketBeat data shows a consensus rating of sell with a target price of $8.00.
• The company recently reported mixed quarterly results, posting a smaller-than-expected loss of $0.08 per share but revenue of just $0.50 million. POET also continues to show weak profitability metrics, including a negative net margin and negative return on equity.

POET Technologies Inc. (NASDAQ:POET - Get Free Report)'s share price shot up 8.4% on Tuesday . The stock traded as high as $8.02 and last traded at $8.0950. 1,433,547 shares traded hands during mid-day trading, a decline of 94% from the average daily volume of 24,721,428 shares. The stock had previously closed at $7.47.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on POET. Weiss Ratings restated a "sell (d-)" rating on shares of POET Technologies in a research note on Friday. Wall Street Zen cut POET Technologies from a "hold" rating to a "sell" rating in a research note on Saturday, April 4th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company currently has an average rating of "Sell" and a consensus target price of $8.00.

POET Technologies Price Performance

The business's 50 day simple moving average is $11.69 and its 200 day simple moving average is $8.68. The company has a market capitalization of $1.28 billion, a price-to-earnings ratio of -11.62 and a beta of 0.75.

POET Technologies (NASDAQ:POET - Get Free Report) last announced its earnings results on Thursday, May 14th. The company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.04). POET Technologies had a negative return on equity of 27.24% and a negative net margin of 5,786.60%.The business had revenue of $0.50 million for the quarter, compared to analyst estimates of $0.25 million. As a group, analysts expect that POET Technologies Inc. will post -0.24 EPS for the current fiscal year.

Institutional Trading of POET Technologies

A number of hedge funds have recently added to or reduced their stakes in POET. Advisory Services Network LLC acquired a new position in shares of POET Technologies in the third quarter valued at approximately $25,000. Quarry LP acquired a new stake in shares of POET Technologies during the fourth quarter worth $29,000. Coldstream Capital Management Inc. purchased a new position in POET Technologies in the 3rd quarter valued at $55,000. Shelton Wealth Management LLC purchased a new position in POET Technologies in the 1st quarter valued at $59,000. Finally, PNC Financial Services Group Inc. acquired a new position in POET Technologies in the 1st quarter valued at $59,000. 1.99% of the stock is owned by institutional investors and hedge funds.

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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