IPG Photonics (NASDAQ:IPGP) Reaches New 1-Year Low Following Analyst Downgrade

Key Points

• IPG Photonics hit a new 52-week low after Needham cut its price target from $120 to $105, while maintaining a Buy rating. Shares fell to $67.70 during trading, down from the prior close of $74.42.
• Quarterly results topped expectations: earnings were $0.61 per share versus a $0.49 consensus, and revenue of $287.5 million exceeded estimates and rose 14.6% year over year.
• Analyst sentiment remains broadly positive, with a MarketBeat consensus rating of Moderate Buy and an average price target of $139.60.

IPG Photonics Corporation (NASDAQ:IPGP - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Wednesday after Needham & Company LLC lowered their price target on the stock from $120.00 to $105.00. Needham & Company LLC currently has a buy rating on the stock. IPG Photonics traded as low as $67.70 and last traded at $69.2160, with a volume of 108,809 shares. The stock had previously closed at $74.42.

Several other analysts also recently issued reports on the stock. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of IPG Photonics in a report on Monday, September 21st. Citigroup decreased their target price on IPG Photonics from $150.00 to $137.00 and set a "buy" rating for the company in a research note on Tuesday, August 11th. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $139.60.

Insider Transactions at IPG Photonics

In other news, major shareholder Fibre Devices Ltd Ip sold 15,361 shares of the firm's stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $85.64, for a total value of $1,315,516.04. Following the completion of the transaction, the insider owned 6,390,628 shares in the company, valued at $547,293,381.92. This trade represents a 0.24% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Valentin Gapontsev Trust I sold 9,306 shares of the stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $75.95, for a total value of $706,790.70. Following the completion of the sale, the insider owned 6,642,886 shares in the company, valued at approximately $504,527,191.70. This trade represents a 0.14% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 45,806 shares of company stock valued at $3,641,659 in the last three months. Company insiders own 37.50% of the company's stock.

IPG Photonics News Summary

Here are the key news stories impacting IPG Photonics this week:

• Positive Sentiment: Third-quarter revenue rose about 15% year over year to $287.5 million, topping estimates, while earnings of $0.61 per share beat the $0.49 consensus and increased from $0.35 a year earlier. Semiconductor laser revenue more than doubled, pointing to a strong growth area. Article: IPG Photonics: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Needham cut its price target from $120 to $105, a reduction that could weigh on sentiment, although it retained a Buy rating. Article: Needham analyst rating and price target

Institutional Investors Weigh In On IPG Photonics

A number of hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in shares of IPG Photonics during the 2nd quarter valued at $334,429,000. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of IPG Photonics by 50.9% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,055,687 shares of the semiconductor company's stock valued at $160,919,000 after acquiring an additional 693,572 shares in the last quarter. State Street Corp grew its stake in shares of IPG Photonics by 11.0% in the second quarter. State Street Corp now owns 909,287 shares of the semiconductor company's stock worth $106,678,000 after acquiring an additional 90,028 shares during the period. Segall Bryant & Hamill LLC raised its position in IPG Photonics by 11.1% in the first quarter. Segall Bryant & Hamill LLC now owns 469,471 shares of the semiconductor company's stock worth $53,797,000 after acquiring an additional 46,935 shares during the period. Finally, Legal & General Group Plc purchased a new position in shares of IPG Photonics in the second quarter valued at about $35,113,000. 93.79% of the stock is currently owned by institutional investors.

IPG Photonics Trading Down 7.0%

The firm has a market cap of $2.94 billion, a P/E ratio of 106.22, a P/E/G ratio of 1.75 and a beta of 1.00. The stock has a 50 day simple moving average of $76.45 and a 200-day simple moving average of $100.76.

IPG Photonics (NASDAQ:IPGP - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The semiconductor company reported $0.61 earnings per share for the quarter, beating the consensus estimate of $0.49 by $0.12. The company had revenue of $287.50 million for the quarter, compared to analyst estimates of $283.31 million. IPG Photonics had a return on equity of 3.39% and a net margin of 2.58%. IPG Photonics's quarterly revenue was up 14.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.35 EPS. As a group, equities analysts forecast that IPG Photonics Corporation will post 1.86 earnings per share for the current fiscal year.

IPG Photonics Company Profile

IPG Photonics Corporation NASDAQ: IPGP develops and manufactures high-performance fiber lasers, laser systems, optical amplifiers and related components. Its product portfolio includes single-mode and multi-mode fiber lasers, pulsed lasers, diode lasers, beam-delivery systems and other specialized photonics products.

The company's technologies are used primarily for industrial materials processing applications, including cutting, welding, marking, drilling, cladding and additive manufacturing.

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