Corning (NYSE:GLW) Stock Falls 13.1% - Here's Why

Key Points

• Corning shares fell 13.1% to about $103.20, with trading volume 79% above its average; the article does not identify a specific trigger for the drop.
• Analysts delivered mixed updates, including several price-target cuts, but the consensus remained “Moderate Buy” with a $175.81 target.
• Corning beat quarterly EPS and revenue estimates, with revenue up 18.9% year over year, and announced a quarterly dividend of $0.28 per share.

Corning Incorporated (NYSE:GLW - Get Free Report)'s stock price fell 13.1% on Thursday. The company traded as low as $101.83 and last traded at $103.2040. 21,375,392 shares changed hands during mid-day trading, an increase of 79% from the average session volume of 11,916,482 shares. The stock had previously closed at $118.77.

Analyst Ratings Changes

GLW has been the topic of several recent research reports. Oppenheimer dropped their target price on shares of Corning from $230.00 to $200.00 and set an "outperform" rating on the stock in a report on Wednesday, July 29th. Fox Advisors upgraded shares of Corning from an "equal weight" rating to an "overweight" rating in a report on Thursday. Mizuho lowered their price target on shares of Corning from $210.00 to $180.00 and set an "outperform" rating for the company in a research report on Tuesday, September 15th. Bank of America dropped their price objective on shares of Corning from $243.00 to $200.00 and set a "buy" rating on the stock in a research note on Wednesday, July 29th. Finally, JPMorgan Chase & Co. cut their price objective on shares of Corning from $170.00 to $165.00 and set a "neutral" rating on the stock in a report on Wednesday, October 21st. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $175.81.

Corning Price Performance

The company has a market cap of $88.90 billion, a PE ratio of 41.78, a PEG ratio of 1.55 and a beta of 1.23. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.72 and a quick ratio of 1.17. The stock's 50-day moving average is $146.40 and its 200 day moving average is $155.44.

Corning (NYSE:GLW - Get Free Report) last issued its quarterly earnings results on Tuesday, October 27th. The electronics maker reported $0.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.88 by $0.03. Corning had a return on equity of 20.83% and a net margin of 12.13%. The business had revenue of $5.08 billion for the quarter, compared to the consensus estimate of $5.03 billion. During the same period in the prior year, the firm posted $0.67 earnings per share. The business's quarterly revenue was up 18.9% on a year-over-year basis. On average, equities analysts anticipate that Corning Incorporated will post 3.37 earnings per share for the current fiscal year.

Corning Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 11th. Investors of record on Friday, November 13th will be paid a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a yield of 1.1%. The ex-dividend date is Friday, November 13th. Corning's payout ratio is 45.34%.

Insider Transactions at Corning

In related news, EVP Lewis Steverson sold 13,100 shares of the company's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $151.29, for a total transaction of $1,981,899.00. Following the transaction, the executive vice president directly owned 15,052 shares of the company's stock, valued at $2,277,217.08. This represents a 46.53% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.25% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Corning

Institutional investors have recently added to or reduced their stakes in the business. State Street Corp lifted its holdings in Corning by 13.4% during the 2nd quarter. State Street Corp now owns 41,108,384 shares of the electronics maker's stock worth $10,500,315,000 after buying an additional 4,845,027 shares during the last quarter. Bank of America Corp DE increased its holdings in shares of Corning by 29.2% in the 2nd quarter. Bank of America Corp DE now owns 18,730,616 shares of the electronics maker's stock valued at $4,784,361,000 after acquiring an additional 4,231,507 shares during the last quarter. Wellington Management Group LLP increased its holdings in shares of Corning by 50.9% in the 2nd quarter. Wellington Management Group LLP now owns 13,174,194 shares of the electronics maker's stock valued at $3,365,084,000 after acquiring an additional 4,446,514 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Corning during the 2nd quarter worth about $1,510,911,000. Finally, Legal & General Group Plc acquired a new stake in shares of Corning during the 2nd quarter worth about $1,212,283,000. Institutional investors and hedge funds own 69.80% of the company's stock.

Corning Company Profile

Corning Incorporated NYSE: GLW is a technology company that develops and manufactures specialty glass, ceramics and optical-fiber products. Its materials and engineering expertise support communications networks, consumer electronics, automotive systems, life sciences and other industrial applications.

The company's products include optical fiber, cable and connectivity solutions used in telecommunications infrastructure; glass substrates for televisions, computer monitors and other displays; durable cover glass for mobile devices; emissions-control components for vehicles; laboratory glassware and consumables; and specialized glass and ceramic materials for scientific, industrial and semiconductor applications.

Founded in 1851 and headquartered in Corning, New York, the company serves customers through operations and facilities across North America, Europe, Asia and other international markets.

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