“Acacia delivered solid CY4Q18 results and better than expected CY1Q19 guidance. The strong outlook reflects increasing traction with new products including and silicon PIC solutions, customer diversification with a growing number of 10% customers and the full recovery of shipments to ZTE in CY4Q. We believe ACIA’s new products (CFP2 DCO, AC1200 and silicon PIC) will all post meaningful Y/Y revenue growth and drive margin expansion in 2019. However, given ACIA shares are trading near $50 (or an EV/E of ~18.3x our CY20 NG EPS est.) in the pre-market, we believe shares are fully valued and maintain the Hold rating.”,” the firm’s analyst wrote.
Several other brokerages also recently weighed in on ACIA. Piper Jaffray Companies upgraded shares of Acacia Communications to an overweight rating and set a $59.00 target price for the company in a research note on Friday, February 22nd. UBS Group set a $51.00 target price on shares of Acacia Communications and gave the company a buy rating in a research note on Wednesday, February 20th. Deutsche Bank upped their target price on shares of Acacia Communications from $45.00 to $60.00 and gave the company a buy rating in a research note on Monday, November 5th. Citigroup upped their target price on shares of Acacia Communications to $60.00 and gave the company a buy rating in a research note on Monday, November 5th. Finally, Rosenblatt Securities set a $51.00 target price on shares of Acacia Communications and gave the company a buy rating in a research note on Saturday, November 3rd. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and ten have assigned a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus target price of $51.25.
ACIA stock traded up $0.02 on Friday, hitting $55.65. 623,254 shares of the company were exchanged, compared to its average volume of 744,655. Acacia Communications has a twelve month low of $24.72 and a twelve month high of $57.53. The firm has a market capitalization of $2.24 billion, a price-to-earnings ratio of 371.00, a price-to-earnings-growth ratio of 3.58 and a beta of 1.76.
Acacia Communications (NASDAQ:ACIA) last released its quarterly earnings data on Thursday, February 21st. The technology company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.06. Acacia Communications had a net margin of 1.45% and a return on equity of 3.02%. The company had revenue of $107.10 million during the quarter, compared to the consensus estimate of $102.84 million. During the same period in the previous year, the firm earned $0.27 earnings per share. Acacia Communications’s revenue for the quarter was up 23.7% on a year-over-year basis. Sell-side analysts anticipate that Acacia Communications will post 0.85 earnings per share for the current fiscal year.
In other news, Director Stan J. Reiss sold 30,000 shares of the firm’s stock in a transaction dated Thursday, March 14th. The shares were sold at an average price of $53.51, for a total transaction of $1,605,300.00. Following the completion of the transaction, the director now owns 216,583 shares in the company, valued at approximately $11,589,356.33. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Bhupendra C. Shah sold 44,626 shares of the firm’s stock in a transaction dated Wednesday, January 9th. The shares were sold at an average price of $41.35, for a total transaction of $1,845,285.10. The disclosure for this sale can be found here. Insiders sold a total of 1,519,139 shares of company stock valued at $78,900,978 in the last quarter. 33.20% of the stock is currently owned by insiders.
Several large investors have recently bought and sold shares of the company. FMR LLC boosted its holdings in shares of Acacia Communications by 108.0% in the second quarter. FMR LLC now owns 2,692,239 shares of the technology company’s stock worth $93,718,000 after buying an additional 1,398,166 shares during the period. Bank of New York Mellon Corp boosted its holdings in shares of Acacia Communications by 330.0% in the third quarter. Bank of New York Mellon Corp now owns 808,169 shares of the technology company’s stock worth $33,434,000 after buying an additional 620,202 shares during the period. Millennium Management LLC boosted its holdings in shares of Acacia Communications by 354.2% in the fourth quarter. Millennium Management LLC now owns 639,280 shares of the technology company’s stock worth $24,293,000 after buying an additional 498,540 shares during the period. TIAA CREF Investment Management LLC boosted its holdings in shares of Acacia Communications by 813.2% in the third quarter. TIAA CREF Investment Management LLC now owns 500,007 shares of the technology company’s stock worth $20,685,000 after buying an additional 445,253 shares during the period. Finally, Vanguard Group Inc. boosted its holdings in shares of Acacia Communications by 19.4% in the third quarter. Vanguard Group Inc. now owns 2,410,234 shares of the technology company’s stock worth $99,711,000 after buying an additional 391,574 shares during the period. Institutional investors own 79.94% of the company’s stock.
About Acacia Communications
Acacia Communications, Inc develops, manufactures, and sells high-speed coherent optical interconnect products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. Its products include a series of low-power coherent digital signal processor application-specific integrated circuits and silicon photonic integrated circuits that are integrated into families of optical interconnect modules with transmission speeds ranging from 100 to 400 gigabits per second for use in long-haul, metro, and inter-data center markets.
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