Zacks Investment Research downgraded shares of IPG Photonics (NASDAQ:IPGP) from a hold rating to a sell rating in a report published on Tuesday morning.
According to Zacks, “IPG Photonics develops and manufactures fiber & diode lasers, fiber amplifiers and transceivers. Currency exchange fluctuations are anticipated to impact the company’s third-quarter quarter performance. IPG’s significant exposure to the materials processing markets, dependency on few customers and substantial China exposure are key negatives. Further, being a vertically integrated company – fixed costs – particularly related to direct labor is significantly high for IPG. This is a major headwind as the company may not be able to manoeuvre this fixed cost in case of a revenue shortfall. Nonetheless, the company is benefiting from strong adoption of fiber lasers over conventional lasers as well as non-laser cutting and welding equipment. Also, dominant position in the core material processing market, vertically integrated business model, industry-leading operating margins and expansion in TAM are key positives.”
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A number of other equities research analysts have also commented on the company. Raymond James upgraded IPG Photonics from a market perform rating to a strong-buy rating in a research report on Friday, September 21st. ValuEngine lowered IPG Photonics from a hold rating to a sell rating in a research report on Tuesday, September 4th. Dougherty & Co reiterated a buy rating on shares of IPG Photonics in a research report on Tuesday, August 21st. BidaskClub lowered IPG Photonics from a hold rating to a sell rating in a research report on Tuesday, August 14th. Finally, Northcoast Research reiterated a buy rating and issued a $208.00 price target on shares of IPG Photonics in a research report on Thursday, August 2nd. Three analysts have rated the stock with a sell rating, three have assigned a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of Hold and an average target price of $223.25.
NASDAQ IPGP opened at $137.58 on Tuesday. IPG Photonics has a 12 month low of $129.81 and a 12 month high of $264.11. The stock has a market capitalization of $8.39 billion, a price-to-earnings ratio of 18.95, a P/E/G ratio of 1.62 and a beta of 1.80. The company has a debt-to-equity ratio of 0.02, a quick ratio of 6.94 and a current ratio of 8.73.
IPG Photonics (NASDAQ:IPGP) last released its quarterly earnings results on Tuesday, July 31st. The semiconductor company reported $2.21 EPS for the quarter, missing analysts’ consensus estimates of $2.22 by ($0.01). IPG Photonics had a net margin of 25.96% and a return on equity of 21.55%. The company had revenue of $413.61 million during the quarter, compared to the consensus estimate of $418.61 million. During the same quarter last year, the firm posted $1.91 EPS. The company’s quarterly revenue was up 12.0% on a year-over-year basis. Equities research analysts expect that IPG Photonics will post 8.02 EPS for the current year.
Several institutional investors have recently made changes to their positions in IPGP. Guggenheim Capital LLC boosted its position in shares of IPG Photonics by 276.2% during the 1st quarter. Guggenheim Capital LLC now owns 461,192 shares of the semiconductor company’s stock valued at $107,634,000 after purchasing an additional 338,606 shares in the last quarter. FMR LLC boosted its position in shares of IPG Photonics by 263.3% during the 2nd quarter. FMR LLC now owns 417,624 shares of the semiconductor company’s stock valued at $92,141,000 after purchasing an additional 302,662 shares in the last quarter. Waddell & Reed Financial Inc. bought a new stake in shares of IPG Photonics during the 2nd quarter valued at about $58,469,000. United Services Automobile Association boosted its position in shares of IPG Photonics by 396.1% during the 2nd quarter. United Services Automobile Association now owns 323,519 shares of the semiconductor company’s stock valued at $13,847,000 after purchasing an additional 258,306 shares in the last quarter. Finally, BlackRock Inc. boosted its position in shares of IPG Photonics by 7.5% during the 2nd quarter. BlackRock Inc. now owns 3,073,688 shares of the semiconductor company’s stock valued at $678,148,000 after purchasing an additional 215,413 shares in the last quarter. Institutional investors own 58.36% of the company’s stock.
About IPG Photonics
IPG Photonics Corporation develops and manufactures a range of high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. The company's laser products include low, medium, and high power lasers; fiber pigtailed packaged diodes and fiber coupled direct diode laser systems; high-energy pulsed lasers, multi-wavelength and tunable lasers, and single-polarization and single-frequency lasers; laser diode chips and packaged laser diodes; and high power optical fiber delivery cables, fiber couplers, beam switches, chillers, scanners, and other accessories.
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