Optical Cable (NASDAQ:OCC) Stock Breaks Below 200 Day Moving Average - Here's Why

Key Points

• Optical Cable shares fell 5.3%, briefly trading below the 200-day moving average of $14.45 before closing at $14.54.
• Analyst sentiment improved somewhat, with Wall Street Zen upgrading the stock to “strong buy” and Zacks Research and Weiss Ratings moving it to “hold”; the overall consensus remains Hold.
• The company narrowly beat quarterly EPS expectations at $0.21 versus $0.20, but revenue of $24.3 million came in below the $24.5 million estimate. Institutional investors own 13.61% of the shares.

Optical Cable Corporation (NASDAQ:OCC - Get Free Report) passed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $14.45 and traded as low as $14.38. Optical Cable shares last traded at $14.54, with a volume of 164,876 shares.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Wall Street Zen upgraded Optical Cable from a "buy" rating to a "strong-buy" rating in a research note on Saturday, September 12th. Zacks Research raised Optical Cable to a "hold" rating in a research report on Wednesday, August 26th. Finally, Weiss Ratings upgraded shares of Optical Cable from a "sell (d-)" rating to a "hold (c)" rating in a research note on Tuesday, September 22nd. Two research analysts have rated the stock with a Hold rating. According to MarketBeat, the company presently has an average rating of "Hold".

Optical Cable Trading Down 5.3%

The stock has a market cap of $128.53 million, a price-to-earnings ratio of 50.14 and a beta of 0.57. The business's 50 day moving average is $14.89 and its 200 day moving average is $14.45. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.17 and a quick ratio of 0.77.

Optical Cable (NASDAQ:OCC - Get Free Report) last posted its quarterly earnings results on Wednesday, September 9th. The communications equipment provider reported $0.21 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.01. The company had revenue of $24.30 million for the quarter, compared to analysts' expectations of $24.50 million. Optical Cable had a return on equity of 15.88% and a net margin of 3.10%. As a group, equities analysts expect that Optical Cable Corporation will post 0.49 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in OCC. Round Rock Advisors LLC lifted its stake in Optical Cable by 88.5% during the second quarter. Round Rock Advisors LLC now owns 58,937 shares of the communications equipment provider's stock worth $1,236,000 after purchasing an additional 27,665 shares during the last quarter. Sei Investments Co. acquired a new position in Optical Cable in the first quarter valued at approximately $754,000. Shikiar Asset Management Inc. boosted its holdings in Optical Cable by 14.4% in the first quarter. Shikiar Asset Management Inc. now owns 28,150 shares of the communications equipment provider's stock valued at $232,000 after purchasing an additional 3,550 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in Optical Cable in the second quarter valued at approximately $216,000. Hedge funds and other institutional investors own 13.61% of the company's stock.

About Optical Cable

Optical Cable Corporation NASDAQ: OCC designs and manufactures fiber optic cable and connectivity solutions for data communications and other demanding applications. Its product offerings include fiber optic cables, assemblies, connectors, racks, panels and related connectivity products used to transmit voice, data and video signals.

The company serves a range of markets, including enterprise networks, data centers, telecommunications, industrial facilities, broadcast and entertainment, military and aerospace, and other environments requiring high-performance or ruggedized communications infrastructure.

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