Harmonic (NASDAQ:HLIT) Shares Gap Up After Strong Earnings

Harmonic Inc. (NASDAQ:HLIT)’s share price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $10.67, but opened at $11.29. Harmonic shares last traded at $10.9450, with a volume of 299,884 shares trading hands.

The communications equipment provider reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.07. The business had revenue of $142.38 million during the quarter, compared to analysts’ expectations of $127.94 million. Harmonic had a net margin of 9.96% and a return on equity of 17.83%. The company’s revenue for the quarter was down 27.3% on a year-over-year basis. During the same period in the previous year, the company earned $0.26 EPS. Harmonic has set its Q4 2025 guidance at 0.060-0.120 EPS.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Needham & Company LLC boosted their price target on shares of Harmonic from $12.00 to $15.00 and gave the company a “buy” rating in a research report on Tuesday. Rosenblatt Securities reiterated a “buy” rating and set a $14.00 price target on shares of Harmonic in a research note on Tuesday. Weiss Ratings restated a “hold (c-)” rating on shares of Harmonic in a research report on Wednesday, October 8th. Wolfe Research assumed coverage on shares of Harmonic in a research report on Tuesday, July 8th. They issued an “underperform” rating on the stock. Finally, Wall Street Zen downgraded shares of Harmonic from a “buy” rating to a “hold” rating in a research note on Saturday, August 2nd. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $12.38.

Hedge Funds Weigh In On Harmonic

A number of large investors have recently bought and sold shares of the stock. Alyeska Investment Group L.P. increased its position in shares of Harmonic by 310.1% in the first quarter. Alyeska Investment Group L.P. now owns 3,077,776 shares of the communications equipment provider’s stock worth $29,516,000 after acquiring an additional 2,327,272 shares in the last quarter. Marshall Wace LLP increased its position in shares of Harmonic by 112.8% in the second quarter. Marshall Wace LLP now owns 1,925,149 shares of the communications equipment provider’s stock worth $18,231,000 after acquiring an additional 1,020,431 shares in the last quarter. Nuveen LLC acquired a new stake in shares of Harmonic in the first quarter worth $8,621,000. Hillsdale Investment Management Inc. acquired a new stake in shares of Harmonic in the second quarter worth $5,432,000. Finally, Lazard Asset Management LLC increased its position in shares of Harmonic by 249.1% in the second quarter. Lazard Asset Management LLC now owns 718,996 shares of the communications equipment provider’s stock worth $6,808,000 after acquiring an additional 513,022 shares in the last quarter. Hedge funds and other institutional investors own 99.38% of the company’s stock.

Harmonic Stock Up 0.7%

The firm’s 50-day moving average price is $10.15 and its 200-day moving average price is $9.50. The company has a market cap of $1.22 billion, a price-to-earnings ratio of 18.26 and a beta of 1.01. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.99 and a quick ratio of 1.58.

Harmonic Company Profile

Harmonic Inc, together with its subsidiaries, provides broadband solutions worldwide. The company operates through Broadband and Video segments. The Broadband segment sells broadband access solutions and related services, including cOS software-based broadband access solutions to broadband operators; and cOS central cloud services, a subscription service for cOS customers.